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.