A consortium in which nearly 200 of the current bus drivers and owners have a share is the preferred bidder for the new public transport service, The Sunday Times has learnt.
The Arriva Malta Consortium is one of two bidders still in the race for the 10-year public transport contract. Its bid is €42 million cheaper than its competitor, Transdev Plus.
Arriva Malta and Transdev Plus are two of the four bidders that had originally submitted a tender for the multi-million euro contract.
A spokesman for the Transport Ministry refused to confirm which of the two was proclaimed preferred bidder but instead insisted that no negotiations with any of the two consortiums were being held.
"The adjudication process of the bus services tender is still subject to appeal and the process is therefore not yet concluded. No organisation has therefore yet been invited to start negotiations. While the appeals' period remains open, we prefer not to make any further comments on the process," the spokesman said.
Many had heaved a sigh of relief when they learnt that the government was planning to overhaul the public transport service, especially because they felt a number of unruly drivers would be driven out for good.
Arriva Malta has a mix of Maltese and foreign interests. The 193 members of the Public Transport Association got together and formed the company Malta Land Transport plc and then teamed up with Arriva, which operates public transport services in various European countries, and the Tumas Group.
One of Britain's top transport companies, Arriva has bus and train operations in 12 European countries.
French consortium Transdev Plus, the other shortlisted bidder for the public transport contract, is made up of Transdev, which runs public transport services across Europe, the Gasan Group, and CVA Technology Ltd which operates the controlled vehicle access system in Valletta.
The adjudication process had stalled for some time earlier this year when one of the bidders lodged an appeal after failing to make it through to the next stage.
In a decision last month, the Public Contracts Appeals Board dismissed the appeal and the financial offers of the two remaining bidders were opened. The bidders were invited to set their claim for the total subsidy they expected to be paid by the government over the 10-year contract period.
Transdev Plus Consortium asked for an average of €11.7 million annually. Arriva Malta Consortium asked for an average of €7.5 million per year.
Unlike the current subsidy system, which is open-ended and subject to fluctuations, the fixed subsidy will no longer expose the government to increased costs in subsidisation if the number of commuters decreases.
The bids included detailed business plans and financial projections to substantiate the offer made by the bidders.
The financial bids are being assessed by the Core Evaluation Committee that is assisted by external financial consultants.
The government is hoping the 10-year contract will be signed by the end of September.