Rather than having a single operator manning the entire route network, the bus service could possibly be operated by a number of companies, each focusing on specific routes, this newspaper has learnt.

One scenario would be to have one operator serving Gozo and another two in Malta, according to the conditions listed in the call for expressions of interest which closed on April 7. A copy of this document was yesterday seen by Times of Malta.

The adjudication process is still under way, with Transport Minister Joe Mizzi yesterday announcing that negotiations with the preferred bidder had begun. He gave no further details.

The three bids received by the government were from Spanish group Autobuses de Leon, Gozo First Travel and Island Buses Malta.

The conditions state that the successful candidate will acquire the concession rights to operate the bus service for the remaining term originally granted to Arriva, which expires on July 2, 2021, with an option to extend it to 10 or 15 years.

Buses must be Euro 5 compliant, low floor and airconditioned, but the operator will still be allowed to make use of vehicles up to 15 years old at any point throughout the concession.

The buses must be fitted with CCTV systems and vehicle-tracking equipment.

Significantly, vehicles exceeding 12.5 metres in length and 4.5 metres in height are not allowed, ruling out the return of the notorious bendy buses that were pulled off the roads last year over fire safety concerns.

The government’s preferred option is for the successful bidder to acquire the operating company, Malta Public Transport Services Ltd, including all of its assets and liabilities.

However, bidders could also make an offer for exclusive concession rights to operate the entire route network, including the assets of the operating company.

The third option would be to operate a group of routes with the option of acquiring some or all of the assets.

However, with the exception of Gozo, offers to operate a group of routes amounting to less than 20 per cent of the total annual bus kilometres would not be considered.

The document states that preference would be given to the submissions received in that order. If the authority is satisfied with submissions under the option to take over all assets and liabilities of the operating company, the other submissions would not be considered.

The next step would then be to negotiate with the preferred bidder on issues like the level of annual subsidy.

Recurrent expenses such as fuel, labour and fleet maintenance costs are to be borne fully by the operator.

As for the fares, candidates were allowed to propose a different structure from the present one but were expected to take into consideration certain factors.

Fuel, labour and fleet maintenance costs are to be borne fully by operator

These include the social needs of certain user groups, including the elderly, disabled people, children and students, while also taking into account the commercial optimisation of the route network.

The proposed fare structure must also promote off-bus ticketing systems and regular travel packages. The successful candidate would be expected to add a number of buses to the current fleet to meet the requirements of the new routes.

This would include replacement, with adequate vehicles, of the coaches and buses now in use as a temporary measure.

Another requirement is to upgrade the IT and communication systems to provide better operational control.

Candidates are obliged to include a €50,000 bid bond when submitting their offer. Once the evaluation is complete the successful candidate would then be required to submit a performance guarantee of €2 million.

The successful candidate must have a limited liability company structure registered in Malta. The operator will be forbidden to transfer the concession unless authorised by the authority.

Candidates were also requested to present proof, by means of a certificate drawn up by an auditor or accountant within the EU, that they are capable of investing at least €10 million.

Bidders were also advised that inspections of the operational facility and quality control would be carried out by the authority or a person acting on its behalf.