Representatives of Spanish bus operator Autobuses de Leon are in Malta for talks on the re-privatisation of the public transport service.

A spokeswoman for the Transport Ministry confirmed the Spanish company representatives were holding talks with the government on their bid to operate the Maltese public transport service. No details were given as to the nature of the talks.

The visit comes on the back of meetings held with Transport Minister Joe Mizzi in Spain last month. Mr Mizzi and Transport Malta officials visited Spain to see the company’s technical capabilities and how it operated the bus service in the city of León.

Asked when an agreement was expected, the ministry spokeswoman said the government would announce the decision “when the process is finalised”.

A major sticking point is expected to be the level of subsidy the government will fork out to sustain routes of high social value but no commercial viability. When Arriva started operating in 2011 the original subsidy agreed on contract had to be in the region of €6 million per year but it grew to €10 million in 2012.

More in Times of Malta and the e-paper on timesofmalta.com Premium.