The bus service is up for grabs again as Transport Malta yesterday invited bidders to submit offers to operate all or parts of the route network.
The call for expressions of interest to run a scheduled bus service was issued 25 days after public transport was nationalised on January 2.
The service is currently run by Malta Public Transport Services, a State company that bought out Arriva, the previous operator, after it ran into financial difficulties.
Transport Malta wants to “drastically reduce” the sale of tickets on buses to make route operations run smoother and is placing emphasis on innovative solutions to encourage off-bus ticket sales.
Emphasis on innovative solutions to encourage off-bus ticket sales
The expression of interest does not list the level of subsidy the government will give but outlines the current maximum fares payable. But bidders have an option to propose their own fare structure and consequently state what they expect as subsidy to fulfil the public service obligation. Preferential rates for the elderly, children, students and the disabled will have to be retained.
Bidders will be given a choice to submit offers for all the routes in Malta and Gozo, which cover more than 29 million kilometres travelled by buses per year, or groups of routes as long as these are not less than 20 per cent of the network distance.
However, the call makes an exception for Gozo, where bus kilometres are far below the established benchmark.
Transport Malta is making it clear though that its first choice is having a single bus operator for Malta and Gozo with additional preference to bidders that opt to take over the State company with all its assets and liabilities.
The term of the concession is seven years – the remaining period of the original 10-year agreement signed with Arriva – but can be immediately extended to 10 or even 15 years.
By imposing a maximum vehicle length of 12.5 metres, Transport Malta is ruling out the return of the maligned bendy buses but is not excluding the use of double deckers when it stipulates a maximum height of 4.5 metres.
Buses will have to be at least Euro 5 compliant, a high environmental standard, low-floor and air-conditioned. They also have to be fitted with CCTV cameras covering the entire seating area including the driver.
Bidders will have to add more buses to the current fleet and replace the coaches that were introduced temporarily after bendy buses were pulled off the road last August.
Bidders have until the first week of April to submit their offer, which will have to be accompanied by a bid bond of €50,000 that will be returned.
Transport Malta will also request a €2 million performance guarantee from the company that will eventually be chosen to operate the service.
The successful company has to show it is capable of making an investment of €10 million and have a letter of intent from a bank showing the candidate’s ability to obtain financing to the tune of €10 million for the operation of a public transport network.
ksansone@timesofmalta.com