Transport Malta evaluates final bus service bids
Transport Malta today opened the financial envelopes from the bids made by the two consortia remaining in the competition to offer public transport services in Malta and Gozo for the next 10 years.
The Public Contracts Appeals Board , in a judgement delivered last week, turned down the appeal of a third bidder that failed to qualify through the technical stage. The bids were opened in the presence of representatives of both consortia.
At the financial stage bidders were invited to set their claim for the total subsidy they expected to be paid by Government over the whole ten year contract period at a pre-determined discount rate in order to set the total claim for the ten year period at ‘net present value'. On this basis, the following bids were received:
1. Transdev Plus Consortium: € 117,292,986 or an average of € 11,729,298 per year;
2. Arriva Malta Consortium: € 75,755,312 or an average of €7,575,531 per year.
Unlike the subsidy system at present - which is open ended and always increasing - this will be a fixed subsidy for the whole 10 year period and any possible reduction in the levels of custom of public transport will no longer expose the government to increased costs in subsidisation, the Transport Ministry said.
"The risk of operation will, for the first time, be totally borne by the operator and not by the Maltese taxpayer."
The bids included detailed business plans and financial projections to substantiate the offer made by the bidders.
The financial envelopes will be assessed by the Core Evaluation Committee that is assisted by external financial consultants.
The Core Evaluation Committee will in turn report to the Adjudication Committee that will establish which is the most advantageous tender in line with the established evaluation criteria and make recommendations to the Board of Transport Malta.
Once Transport Malta indicates the preferred bidder, the government will set up a negotiating team to enter into negotiations for the final contract which it is hoped will be in place before the end of September.
Transdev Plus is made up of Transdev, which operates in several European capitals, Gasan Group and CVA Technology Limited, which operated the CVA system in Valletta.
Arriva Malta Consortium, has a mix of Maltese and foreign interests. This consortium also includes 193 members of the Public Transport Association who formed the company Malta Land Transports plc, and the Tumas Group.
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Joe Fenech
Jun 23rd 2010, 01:27
CURRENT BUS OWNERS??????? I'd prefer to be driven by a baboon than them!!!
SO we'll start with the swearing, Elvis/Madonni/Saints statues, kitsch decorations again....
REFORMS??????? OH GIVE US A BREAK, GONZ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Manuel Dimech
Jun 22nd 2010, 10:20
CVA Technology Limited, which operated the CVA system in Valletta.
???? Don't anyone know that they are JV with MT? conflict of interest???????? can anyone enlighten us please????
A. Grech
Jun 22nd 2010, 09:13
Mr. Roger Abela has a point (see his post below). Why was Arriva Malta allowed to participate in this process when most of it is composed of PTA bus drivers who were (or are to be) given a compensation? I guess that the 10 year work guarantee promised by the Government was an indication that the tender would be given to them too, meaning that we are stuck with the same old stink once again! (way to go for tourism). If Arriva Malta wins the competition then those of the PTA forming part of it should receive NO COMPENSATION! or else all of us living on these islands deserve a compensation too, since apparently the Government is giving away free money, or is it that you have to be a tough guy to get what you want in this country?
victor caruana
Jun 22nd 2010, 08:32
"The risk of operation will, for the first time, be totally borne by the operator and not by the Maltese taxpayer."
This is fine....but what happens if the operations make losses and the operating consortium calls it a day and just walks out. Answers please.
John Zammit
Jun 22nd 2010, 10:46
I honestly hope (or rather, pray) that there are provisions in the contract for that situation!
J Oatmon
Jun 22nd 2010, 07:14
It will be an utter catastrophe for Malta (especially tourists) if the existing drivers have any position of power where they can dictate how the bus services are run. The drivers should be recruited only after passing a rigorous test for driving and courtesy, and no criminals please under any circumstances.
We need proper bus inspectors who have the power to properly discipline arrogant and incompetent drivers, and get them fired if necessary.
However we all know that 'enforcement' is where Malta (and the government), fails every time, so I expect we will get decent buses (the old buses themselves wont go on strike if they are dumped), and we will get lots of good intentions and nice words, but almost any driver mis-behaviour will be overlooked, just as it was before. Malta's government lacks backbone and integrity in my view.
Tony Borg (Melbourne)
Jun 22nd 2010, 03:15
If an offer seems too good to be true it usually is. From the blogs that I read thus far, it seems that the general public haven't got a clue what to expect from a new bus operator. Be it new buses, old secondhand buses,intensive driver training and transport users intensive training so that there will be respect between the two etc. Shouldn't the governament have already informed the public of what they want to achive with the new company? The only thing that came out of the Transport Ministry is that the taxpayers wouldn't have to foot the bill of increased costs in subsidisation, nothing about the quality of service or buses to be used. Could the Transport Ministry enlighten the bus users please? I'm interested too because I use the buses when I visit the Island. My last visit was not a good experience on the buses, the rest of the time was fantastic. Love Malta, and I love to see it flourish.
mario aquilina
Jun 22nd 2010, 00:24
I do not mind paying a hire fare for a smartly dressed, educated bus driver, who takes me to my destination in a clean comfortable air conditioned bus, or is that asking too much.
Is it possible to be a bit more professional this time round. Buses free from the ugly and stupid sign writings, like Elvis, Manchester United, Trust in God, Ta'Wenzu and the rest. Do we really want pictures and statuettes of Jesus and Our Lady on the buses, when every other word, out of most drivers mouth is a swear word. If I want to pray, I'll do it in the comfort and privacy of my own home.
And how about getting rid of all the brooms, buckets and oily water containers that are kept on display, on the bus, at the same spot where we passengers should be placing our bags.
When will we ever learn to give value for money. A fresh start is badly needed.
N. Bonello
Jun 22nd 2010, 00:12
So, if I read this well we have one of the bidders (Arriva Malta Consortium) consisting of ex bus drivers/owners who will be running the show.
Didn't we just give them all EUR 100,000's for each bus ? So we give them that money and let them continue to do what they have been doing (very badly) for decades ! No thanks.
'bidders were invited to set their claim for the total subsidy they expected to be paid by Government'. Are we saying that we are going to pay out a yearly subsidy of millions. Who get the money from fares - government of the company ? What are the incentives to give a (much) better service to the public ?
E. Abela
Jun 22nd 2010, 09:08
If we are going to have the old buses, or second hand buses - the whole reform does not make sense. Also if we are going to have the same bus drivers, with due respect to the bus drivers who are well mannered, and who do their duty properly - yes there are such bus drivers and they are a credit but unfortunately their work does not get recognised - the new system will fail from day one.
John vella
Jun 21st 2010, 21:31
U must be kidding!!?? U are really thinking of offering the contract to present bus drivers? Are u drunk or just plain insane??
Roger Abela
Jun 21st 2010, 21:03
Arriva Malta (current bus owners) --
€ 55,000,000 (current compensation) + € 76,000,000 (asked future subsidy)
=
€ 131,000,000
Oh come on....who are they trying trying to fool?
Tonio Vella
Jun 21st 2010, 20:18
If taxes are not reduced after the reform, then this whole exercise will amount to ADDED TAXATION because the taxpayers will themselves have to pay the subsidisation whenever they pay the higher bus fares. I do not like this - the only change I'm seeing so far is in the prices.
E. Fuerhoff
Jun 21st 2010, 20:08
As a foreign person I'm not fully qualified to comment this and surely I'm biased by holiday experiences only, but: maltese busdrivers aren't really rude...as busdrivers in my hometown have "rudeness" as their middle name.
E. Abela
Jun 22nd 2010, 10:21
E. Fuerhoff - 'Maltese bus drivers are not rude' - may be true, the majority of them are not 'rude' but I have been using the local bus transport service for over 40 years and can in all honesty that some of the bus drivers are not only rude, but reckless and treat the passengers as if they are on sufference. Do not know what part of Europe you come from but I have used bus transport in England, France, Germany, Italy and Sicily many times and have never ever come across 'rude' bus drivers.
malcolm seychell
Jun 21st 2010, 20:01
I will go for the most expensive bid. If the other company is made up of bus drivers, it should be automatically a NO thank you. We had bad service from them for the last 40 years. Hekk jonqos ukoll
wally vella-zarb
Jun 21st 2010, 21:31
And what makes you think that the present drivers would not be employed by the winning bidder, whoever that may be? In any employment scenario, the employees are as good - or as bad - as the management skills of the employer.
Tony Caruana
Jun 21st 2010, 19:21
What a Kummiedja alla Austin Gatt !!\
Except nobody is laughing except him !!
Joseph N Attard
Jun 21st 2010, 19:11
What a great big (expensive) farce it would be if the present bus drivers were to win the contract to provide the future bus service! Would they be supposed to teach themselves the rules of the road? To teach themselves good manners? To teach themselves how to dress decently? To teach themselves not to use mobile phones while driving? To teach themselves to drive at proper speeds? To teach themselves to keep clean buses? To teach themselves not to play loud offensive music? To teach themselves not to blaspheme at passengers and other road users? To teach themselves to give the proper change? To teach themselves to use Bus Stops properly? In short, would, or could, anyone reasonably expect them to provide the much needed quantum leap in service? Would the Government's stated aim of steering people away from using their private transport conceivably materialize? Never!
R.Gauci
Jun 21st 2010, 19:39
When are the passengers going to learn to say thank you when they get a good service??!! When are the passengers going to learn not to vandalize the buses??!! When are the passengers going to learn to keep the buses clean??!! When are the passengers trying to get small coins or exact change for their tickets??!! Do you know that in some places abroad if you don't give exact fare to the driver you don't get any change or you might get only a voucher which you have to go to cash at the bus company office which is sometimes situated 100kms far??! Not all passengers behave as I stated above so please do not generalize not all bus drivers are bad as you are stating! Try yourself to drive a bus in Malta for at least a week and then will talk!! We will see how much the people will be happy to pay a higher fare for a sterling service!! When you pay peanuts you get monkeys with all due respect !!
C Cassar
Jun 21st 2010, 20:33
R Gauci: The passenger always says thankyou because they always hand over the money for the fare. Good service is always expected, that's what people pay for. Only when service goes beyond what is expected should a thankyou be given. You really don't sound like you have a clue with regards customer service or delivering a quality customer product.
Joseph N Attard
Jun 21st 2010, 21:00
Mr. R. Gauci, I respect the views civilly expressed in your response. If you are a bus driver, you are a credit to your calling. Yes, there must be obnoxious passengers, too, as I am sure that there are good drivers. Unfortunately, misbehaviour by some passengers does not warrant all the widespread shortcomings I listed, and which are daily witnessed by thousands of people. The present bus drivers, and their union, have been given umpteen opportunities (and a lot of public money) to make the service acceptable. They have spurned all the chances. That is why it is the generally held view that they are incorrigible. Nothing would please me more than to be proved wrong. (P.S. I have driven small passenger cars all over the five continents. I have also taken bus rides all over. I know how bus drivers in civilized countries behave, as well as in uncivilized ones.)
H galea
Jun 21st 2010, 22:49
Mr Attard, I fully agree to your comment, but you left out that at times bus drivers forget the route( Bus 42) and goes via another direction. The present system of differant bus'' makes'' makes driving worse for drivers. We all find a new car differant from the previous we had, just immagien driving 500 buses of all shapes and sizes, no wonder the drivers are never at ease.
The only two drivers i give my full backing are women, it is an experience in driving and manners, as a matter of fact i suggested she should start a bus driving school only for women, perhaps one day we have more pleasant rides.
Daniel Laus
Jun 21st 2010, 19:05
Transdev Plus is the only option! With Arriva Malta we'll end up with the same bus drivers!!!!
P.Scicluna
Jun 21st 2010, 18:55
We are going to have second hand buses from london.which according to London authority needs a change, Dump them in Malta !!!!!!!!!!!!!
alan cox
Jun 21st 2010, 18:51
Hello there !you´re having a laugh same old rude personnel! and all the costs involving tax money for putting up this charade??? And paying the bus drivers for loss of income and buying out thier buses.Dear government it´s an insult to the intellegence of the voters( the Maltese people).
Mark Grima
Jun 21st 2010, 18:49
if they choose the Arriva Malta Consortium would be a case of "L-irhis gholi!" (what is cheap is expensive!)
KM Vella
Jun 21st 2010, 18:42
Not to shoot down the Arriva Malta Consortium, but the Asian buses are dangerously inadequate from an ergonomic point of view, as can be verified by any ergonomics auditors. Having some on the road is one thing (although already a grievous oversight), but the possibility of a whole fleet of them is an entirely different matter. More seriously, however, we see the prospect of almost 200 bus drivers (whom are members of this consortium) once again becoming leading decision makers in the reformed transport system. They have already demonstrated quite exhaustively that they are not up to the task of running and operating such a system, so, how they can be chosen to repair what they have already almost irreparably broken is something that is well beyond my comprehension.
R.Gauci
Jun 21st 2010, 19:20
Please do not generalize not all bus drivers are bad as you are stating! Don't forget the conditions these bus drivers work in are not easy ones, try yourself to drive a junk of a bus for around 10 -12 hrs a day on the narrow crazy Maltese roads with an engine near you especially in the Summer heat and you will rethink three times what you said! Yes some of them should had been sacked but not all! I know what I am saying as I use to speak like you, until I started to do the bus driver abroad in much better conditions that is I work a maximum 8 hours every day for 5-6 days a week driving 2008 buses on wide motorways with educated passengers and got nervous after doing this job for 2 years,where I am paid 110 euros a day that is more then 3 times what the new company that will operate the service in Malta will offer their bus drivers that is 35 euros a day ! So don't shout too much cause where you going to find the required 450 bus drivers to operate the service with such wage being offered?
KM Vella
Jun 21st 2010, 19:36
If you read my comments well, I did start with a disclaimer that I did not intend to shoot down the Arriva Malta Consortium. My beef, so to say, is with the drivers being the decision makers. I'm sure that within a well organised private enterprise, the majority of the drivers would indeed integrate well.
R.Gauci
Jun 21st 2010, 21:02
Mr.Cassar, if I don't have any idea of customer care I sure wouldn't work as a bus driver abroad earning 30,000 euros a year ! Yes Mr.Cassar and others that's what a bus driver earns abroad cause the passengers there are ready to pay good money to have a good service!
Its you and others that don't know what are talking about infact you didn't comment on any of the others comments and facts I wrote ??!! If someone wants to proof me wrong just accept my challenge and try to drive a bus in Malta for at least a week and then if you like it so much and like the wage of 35 euros a day , the new service provider will need about a further 250 drivers to work different shifts 7 days a week, then you can talk my friends!!
Robert Agius
Jun 21st 2010, 22:34
@R.Gauci
Getting paid 3 times as much is also applied to any other job done in many countries abroad so don't bring that one up please. The majority of the bus drivers got way more than they deserve.
A. Grech
Jun 22nd 2010, 10:09
@ R. Gauci:
First of all allow me to apologize if our comments are offensive to you, but as you surely know, they are not false either, but as you said it's not good to generalise. In any case the PTA may not be serving its members well. Do you know the maximum working driving hours under EU law? Driving 10 to 12 hours per day for a whole week is bording on the limits if not over. (TRANSPORT MALTA please take note): http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1082155252&type=RESOURCES
Maybe the pay offered is very low but €35 euros per day for how many hours worked? What are the benefits offered?
Mr. Gauci it is time for a change, do not fear this, if you have a clean record i'm sure you wouldn't find any problem to be recruited by TransDev Plus. If your argument is that you will lose your fixed income, remember that you were given a compensation.
If the Arriva Malta wins the tender let it be known to the Government that i am not one to suffer such an insult and will boycott public transport. I advise all to do the same.
James Dimech
Jun 21st 2010, 18:30
PLEASE PLEASE DO NOT GET BUSES FROM ASIA (UNLESS THEY ARE FROM JAPAN)... LETS HAVE DECENT EUROPEAN BUSES LIKE ALL THE EUROPEAN CITIES HAVE
C. Farrugia
Jun 21st 2010, 18:26
Have any of the two bidders stated if they will be using new or second hand buses. This should influence the final judgment. Better pay a bit more and have new buses.
P. Gauci
Jun 21st 2010, 18:19
1. Transdev Plus Consortium: € 117,292,986 or an average of € 11,729,298 per year; 2. Arriva Malta Consortium: € 75,755,312 or an average of €7,575,531 per year. Does this include the 55 MILLION EUROS compensation given to the bus drivers (now part of the ARRIVA consortium)??? Seems they didn't require the compensation at all. Where's the 'loss of business' if they are going to be chosen again to run the service???? All this shows that those 55 million euros should never have been given in the first place or at least they should have been disqualified from bidding.
mark spiteri
Jun 21st 2010, 17:49
Arriva Malta Consortium is basically nearly the whole lot of the bus drivers we have today correct? If so giving them the contract would be the biggest joke ever!
C Cassar
Jun 21st 2010, 17:40
Well, the choice should definitely not be the lowest bidder - it's low for a reason.
Harry Cameron
Jun 21st 2010, 21:58
Perhaps common sense will prevail & the compensation payment will be deducted from the tender prices - that would leave Transdev somewhat less expensive than Arriva. Somehow I doubt common sense will prevail.