Transport Minister Joe Mizzi today announced that Autobuses de Leon will be taking over the public transport service in the beginning of next year.
He broke the news in an interview with the national TV station.
He also said that the request made by this particular company in terms of subsidies is much lower than the subsidies the former transport provider, Arriva, and other companies requested.
In September, the minsiter had told this newsroom that discussions between his Ministry and Autobuses Urbanos de Leon – the preferred bidder to run Malta’s public transport service, had reached the final stages.
In comments to The Malta Independent, Mr Mizzi hadn't given any deadlines but said the government is working hard to close the deal as soon as possible. “During these past few weeks discussions have progressed greatly and are now at a very advanced stage. We are in the process of closing the deal.”
At the time, the Transport Minister would not comment directly on speculation about the amount the Spanish company was asking for in subsidies. According to reports the Spanish company was asking for anything between €25 million and €29 million. Arriva had asked the government €45 million a year in subsidies to keep operating in Malta but the demand was refused. The UK based company had prematurely quit its 10-year contract and left the island last year.
When he had been asked if he was confident that Autobuses Urbanos de Leon can survive on less subsidies than Arriva, Mr Mizzi said the government will deliver on its promise of a sustainable and affordable public transport service. “We will keep our promise and the new operator will not be there to operate for just a year or two but for a long time.”