Issue link: https://maltatoday.uberflip.com/i/437144
maltatoday, SUNDAY, 21 DECEMBER 2014 7 News Spanish public transport operators to take over on January 8 TIM DIACONO SPANISH company Autobuses de Leon (ALESA) will take over the public transport system on January 8, after the takeover deal was final- ised yesterday. The new operators have agreed to spend €8 million for the purchase of Malta Public Transport, the state- owned public transport company created following the nationalisation of the Arriva Malta bus service last January. The government will grant ALESA an initial €23 million subsidy for 2015 in what is expected to be a soft launch. The subsidy is expected to increase once the company expands its route network in 2016, but no de- tails of the higher subsidy have been released as of yet. The new operators are expected to initially hire a number of buses to run the service, before eventually bringing over 142 brand new buses. The vehicles will also have a 20% larger passenger capacity rate and the system will bring a combined to- tal of 3,000 additional bus seats into the network. ALESA also confirmed that they will be recruiting additional drivers. "I'm delighted that Transport Malta has chosen us to operate this important and complex contract," ALESA director Felipe Cosmen said. "We will be introducing 30% more capacity into Malta's network during peak times and providing additional seats. "Our bid for the contract was fo- cused on improving customers' ex- perience and includes a new fleet, new IT systems, and improvements to be delivered at bus terminals. I'm looking forward to working with ex- isting colleagues and welcoming new staff and together delivering this vi- tal contract to Malta. We are pleased that the strengths of our bid have been recognized today in the award- ing of this important contract and look forward to delivering its chal- lenging requirements. "We trust in the current staff to achieve customer loyalty and pro- vide a transportation system close to the needs of the Maltese. We are re- cruiting additional drivers to deliver the new network." Cosmen described the contract as a "great deal" for customers, com- munities and taxpayers. "Millions of passengers will benefit from thou- sands of extra seats, new services and affordable tickets," he said. The sale of the nationalised bus service for €8 million includes the entire asset base purchased from former operator Arriva Malta. ALESA will have to invest some €40 million into the service, accord- ing to the transport ministry, which will include 142 new buses of Euro 6 standard. A copy of the agreement will be ta- bled in the House of Representatives in the coming days. The deal was allowed to go through after a court rejected an application for a warrant of prohibitory injunc- tion filed by rival bidders Island Bus- es Malta against Transport Malta and the Ministry for Transport intended to stop the government from enter- ing into any contractual arrange- ments with the Spanish company. The court decision, handed down by Mrs Justice Jacqueline Padovani Grima earlier this week, also revoked a temporary injunction to the same effect. ALESA were awarded the pub- lic transport tender in April, beat- ing off competition from Maltese consortium Island Buses and Gozo First Travel. However, Island Buses had argued that Transport Malta's call for expressions of interest and subsequent discussions with ALESA were "vitiated" from the start as the tender's goalposts were changed to the disadvantage of the Maltese con- sortium. Padovani Grima said that an in- junction was not necessary because Island Buses have the option to chal- lenge the tender award through a court case. She pointed out that the government is spending thousands every day to maintain the temporary public transport service and that halting the process of selecting Ar- riva's successor will negatively affect thousands of people. "From next January, the new routes will be gradually introduced," Trans- port Minister Joe Mizzi said in re- sponse to the court decision. "This comes after a wide consultation with local councils, stakeholders and the public without extra taxes being paid by the Maltese people." He contrasted it with "what hap- pened in the past when millions of euros were paid in consultancy fees to introduce new transport routes". The Opposition has heavily criti- cised this agreement, insisting that the €23 million subsidy is too high and that Joe Mizzi should not have met with representatives of the Spanish company before they had been awarded the tender. Importers of hand-knotted Oriental carpets THE FLYING CARPET - OLD RAILWAY TRACK, ATTARD .PO5VFT5IVST4BUBNoQNt8FEOFTEBZNPSOJOHDMPTFE .PO'SJoQNQN *NQPSUFSTPG7BSJPVTIBOELOPUUFEDBSQFUTBOE,JMJNT /PO4MJQ6OEFSMBZ%SZBOE-JRVJETIBNQPP.PCJMF/P Deal concluded: Joe Mizzi shakes hands with ALESA director Felipe Cosmen, with Transport Malta chairman James Piscopo (left) and Javier Valero, ALESA Group CEO