The new government-run bus service will commence today, although the contract between public transport operator Arriva and Transport Malta is yet to be signed, which should be done by the end of the week.

It will be business-as-usual today, with no changes taking place to the routes.

The subsidy to the new service-provider could potentially go up from the current €8 million to more than €16 million.

The subsidy will need to include the loss deriving from cheaper tickets to non-residents and will also have to carry the burden of losses incurred by Arriva in 2013. However, experts in the field have defined the cost to subsidise the new routes which Transport Minister Joe Mizzi has been talking of as the main contributor to the surge in public transport costs in 2014.

These new routes will not only add to the final cost due to increased mileage but also because of the increase in the number of buses engaged and the number of new drivers to be employed as indicated by the minister. To top it all, the government will be buying back Arriva’s buses and the cost must be factored into the subsidy.

In the past few days it was also reported that the government will be taking on around €15 million of Arriva’s debt and the rest will be borne by Arriva’s parent company. Arriva has racked up €50 million in debt.

Arriva racked up a debt of €50 million during its two-and-a-half years of operation in Malta. €15 million of that debt has been foisted on the government.

Transport Malta will be taking over Arriva’s buses and IT system, while workers will be retained for the time-being until a new operator is found.