The current cost of the contracts was about $12.8m a year.
The new Bayhopper network will feature redesigned routes, new interchanges, extended operating hours and more frequent services with a fleet of low-emission vehicles including five state of the art electric buses.
All buses will have bike racks and customers will have access to real time journey information and bus tracking.
Regional council public transport committee chairman Lyall Thurston said the tender process was highly competitive for the nine-year contract that would enhance public transport in Tauranga by building on the work undertaken by Go Bus and other contractors.
"Firstly it's important we acknowledge the previous nine years of dedicated service undertaken by Go Bus," Thurston said.
"Their management and staff should be proud of the contribution they have made to our growing region and we will be sad to see that relationship end. All of the proposals were strong and Council acknowledges the time and effort put into them.
"Ultimately NZ Bus presented the best combination of price and quality for Tauranga ratepayers. The procurement team were particularly taken with the increased driver pay offered by NZ Bus," he said.
NZ Bus Chief Executive Zane Fulljames said they were delighted to be selected to operate the Tauranga bus services.
"We're looking forward to a productive partnership with the Council and to provide a quality service to customers and the exciting changes being implemented by the Council will transform the experience for the public, and we are excited to be a part of that,"
Fulljames said.
Mr Thurston said although the announcement of the tender process represented a culmination of a lot of work it was really only the beginning when it came to improved public transport in Tauranga.
"The enhanced bus network launching in December represents a landmark date in the Tauranga transport space but we won't be complacent and it's important we continue to work with staff and our partners at Tauranga City Council, Western Bay District Council and New Zealand Transport Agency to seek further improvements including bus priority measures and adapting to any advancements in technology," Thurston said.
"We are also aware that one in five people in Tauranga and the Western Bay of Plenty identify with a disability that impacts on their daily life. The Bay of Plenty Regional Council maintains its ongoing commitment to the disability sector hence all buses will be fully accessible."
The public transport contract is funded from fares from passengers using the service, by the NZ Transport Agency through the National Land Transport Fund, and from council through rates.
Details of the new network including specific routes and timetable information will be released later in the year and schools will receive information relating to school bus routes near the end of term two.
