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Bus drivers' consortium is favourite

Government hopes to sign contract by end of September

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.

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Peter P. Webster

Jul 27th 2010, 15:08

Obviously AMC is the favourite bidder, they are 4.2M Euro cheaper for the first 10 year than Transdev. But 'Transport Malta' is now caught in a trap set by AMC and their 200 future share holders (and former line bus licence holders). First they gave in (I take it afraid for another strike etc.) and increased the 'offer' to buy back the licences to 108,000 Euro (x508 = 55M Euro!). These bus owners must have agreed with AMC to bring this money to the 'kitty' and together with an extra input from the other local share holder(s) -who stand to gain big spin-offs - AMC could put in a low financial offer for this tender, in line with the current subsidy already paid by the government. So suppost a better service for 'more-or-less' the same money; looks like a win-win situation ... where is the catch??

Joe Fenech

Jul 26th 2010, 15:45

What nonsense? Are you English?

A driver should be a driver not a bus owner, cleaner, driver, mechanic. A driver take a bus from a garage in the morning and puts in back in the evening. At night the servic epeople clean and service the vehicle and get it ready for the next run.

Alan Barrett

Jul 25th 2010, 19:59

Arriva seem very confident of gaining the contract.They have advertised(internally) for driving instructors with articulated bus experiece for secondment to Malta.Arriva are set to become part of a far bigger organisation on the 20th August 2010,in a £1.58billion pound deal,when they sell out to German state railway company Deutsche Bahn.

Joe Fenech

Jul 26th 2010, 15:52

MANY BUS DRIVERS ARE ALSO BUS OWNERS !

Mike O'Hara

Jul 26th 2010, 14:16

I can't agree that Arriva is as bad as that. Not for nothing is First Group known as "Worst Bus". Some of their vehicles round here (no disrespect intended) look like they have been rejected by Malta! At least you won't have to suffer that, as they aren't in the running.

Mike

W Spencer

Jul 25th 2010, 16:00

NO !!! Now is the time to stop this ludicrous Government decision !

When are the protest marches going to begin, when are all the petitions being handed in ?? LOL !!

We ALL know the reason for this so called ' new transport system ' is because the present system / service does not work !! So what is the answer, well thats obvious, give the present shambolic owners / drivers loads of compensation cash, award them with a TEN YEAR contract, and pay them millions of euros in subsidies. Do not under any circumstances critisise them about dress codes, civility, punctuality, personal hygiene, using mobile phones and smoking while driving, wreckless driving, or any other minor faults they may have !!
Strewth..... That would be as cheeky as asking what the police actually do during working hours, or expecting building contractors / developers to wait until they receive permission before starting excavation / building !!! Things never change, shutting the stable door after the horse has bolted, comes to mind.

Will the Transport Minister resign if things go very wrong.............



ABezzina

Jul 25th 2010, 17:20

Mind your language! Good choice of words though ;-)

Aldo Gatt

Jul 25th 2010, 14:02

It is just so annoying for a government to be so suicidal in such a vital sector on which other areas of the economy depend. Unfortunately public transport has no significant competition apart from the private car and that cannot sustain any more due to the already high levels of traffic. So what the Maltese can look forward to in the future is a vicious circle of higher taxation on car travel to discourage it, fueled by increasing public transport cost, without any meaningful improvement in service. The consortium will still hold the government/public to ransom and we'll be back to square one.

r.gauci

Jul 25th 2010, 21:33

Is-sussidju li se jinghatalhom huwa aktar milli qed jinghatalhom issa w tinsiex li se jiehdu 55 miljun ewro kumpens allura ma jimpurtahomx jekk is-servizz jitjiebx jew le l-aktar ghal dawk li fadlilhom anqas minn 10 snin ghal penzjoni ! Gewwa x-xilep ghalihom u tbaswir bhal ma sar fil-passat ha jibqa jsir ! Il-flus ghandhom jigu nvestiti f'servizz kompletament gdid specjalment f'pagi tajba w mhux 35ewro kuljum kif se jkunu ,halli nies b' livell ta' edukazzjoni tajjeb jithajjru ghal dan it-tip ta' xoghol u mhux nies illetterati biss jamluh bir-rispett kollhu!

Anthony Borg

Jul 25th 2010, 21:27

very good comparison Mr.Camilleri...it fitted the situation well!
Pity our spineless government is neither a good wine connoisseur nor an avid reader of the KJV version.

R.Gauci

Jul 25th 2010, 11:28

The answer to your question is ONLY IN MALTA !!

Ray Buhagiar

Jul 25th 2010, 11:39

M'ghaddewx mill-bieb u se jaghddu mit-tieqa. Sew fhimt, Sur Galea. Tidher li din kienet biss loghba bejn il-hbieb tal-hbieb bhas-soltu.

Albert Bezzina

Jul 25th 2010, 16:59

Bus patrinage will increase 'BY HOOK AND BY CROOK'!!
Ladies and gentlemen, await a salvo of passenger car restricting measures when the new service starts such as reduction of available parking spaces, restricted parking and restricted access, resident parking schemes, warden onslought with re-interpretation of laws. In effect commuters will be bullied onto the bus service, not because of environmental concerns but to give the private operator a healthy profit. These measures could have been implemented years ago but that could have reversed the decline in patronage and would have been inconvenient to run the old service into the ground - which it deserved anyway!

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