Spanish company Autobuses de León put pen to paper with the government yesterday, saying they would take over the running of Malta's public transportation system next month, after the courts earlier this week dismissed objections from rival bidders for the contract.

The government yesterday announced the government decision to award Autobuses de León the contract to operate Malta and Gozo Scheduled bus services. This new contract will commence on 8 January 2015.

A government statement said this afternoon that ALESA bought the shares in Malta Public Transport for €8 million.

ALESA will be investing €40 million to operate the service but the fares will remain unchanged, as has been promised.

Investment includes the purchase of 142 new Euro 6 buses by next summer. In the meantime, until the new buses arrive, special low floor buses will be hired.

ALESA will also be investing in staff training, the use of simulators and improving the ICT system.

The agreement also includes the gradual introduction of new routes and a better frequency of routes, adding some 3 million kilometres a year.

A copy of the agreement will be tabled in Parliament soon.

Transport minister Joe Mizzi said the agreement is good for both sides. "Without promising miracles, we will work so that the new system fulfils the aspirations if all Maltese. We want a service that will be a credible alternative, that is serious and efficient and that reaches most people. This is not easy but we are convinced that with goodwill we can reach it."

Commenting on the award, Felipe Cosmen, Director of ALESA said yesterday, "I'm delighted that Transport Malta has chosen us to operate this important and complex contract. We will be introducing 30 per cent more capacity into Malta's network during peak times providing additional seats.

"Our bid for the contract was focused on improving customers' experience and includes a new fleet, new IT systems as well as delivering improvements at Terminals. I'm looking forward to working with existing colleagues and welcoming new staff and together delivering this vital contract to Malta.

"We are pleased that the strengths of our bid have been recognized today with the award of this important contract and look forward to delivering its challenging requirements. We trust in the current staff to achieve customer loyalty and provide a transportation system close to the needs of the Maltese. We are recruiting additional drivers to deliver the new network.

"This new contract is a great deal for our customers, communities and taxpayers. Millions of passengers will benefit from thousands of extra seats, new services and affordable tickets."

On Tuesday the courts turned down a request for a warrant of prohibitory injunction filed by Island Buses Ltd.

The Maltese consortium, which had submitted a bid to operate the public transport system, had filed a warrant of injunction in the First Hall of the Civil Court to stop the government from signing the agreement with the Spanish company.

It claimed that the contract awarded to Autobuses de Leon did not respect the conditions laid down in the Expression of Interest after it emerged that the Spanish company would not be operating the whole service immediately and would be given an initial €23 million subsidy, which would increase over the years because the company would add to the number of buses and staff and eventually take over the whole system.

Island Buses claimed that according to the EOI, the amount of subsidies would need to be calculated up front for the bidders to place their bids according to fixed parameters. It said that Transport Malta had put the Spanish company at an advantage by accepting the phased-in service. Had it known this was an option, it would have submitted a more competitive bid. The request had been temporarily upheld by Mr Justice Mark Chetcuti on 18 November.

In court, Transport Malta's lawyers argued that Island Buses had no legal right to request the warrant because the consortium had not appealed in the stipulated time and cannot build its case on declarations about a contract that has not yet been signed. It also said it was clear from the EOI that the bidders were asked to submit their implementation plans on how they would take over the whole service so the complainants could not claim that they did not know about this. 

Madam Justice Jacqueline Padovani Grima turned down the request, which was filed against Transport Malta, the Transport Ministry, the Government and Malta Public Transport Services.

The court said the government has not yet signed the contract and it would be premature for Island Buses to claim irregularities in the process. The ongoing negotiations did not deviate from the conditions laid down in the EOI. It also noted that the €23 million initial subsidy is not the full amount but rather the amount needed by the Spanish company during the first year, when it will not be operating the whole system. The company did not ask for an increasing subsidy but rather said it would not be taking in the full amount until it was running the whole system.

It was clear, the court ruled, that Island Buses Ltd had no right to call for a warrant of prohibitory injunction. Its claims were based on allegations, conjectures and subjective interpretations.

In a statement that day, the Transport Ministry said Malta will have a new public transport operator by January, as planned. The court decision showed that the government is moving in the right direction and will keep working to give the public the transport system it truly deserves.

Transport Minister Joe Mizzi said that despite attempts to disrupt the process, the government will deliver on its promise. "The government is not promising miracles and is looking at the coming months as a challenge."

Mr Mizzi said the new routes will be gradually introduced as from January. These were drawn up after wide consultation with all stakeholders. The government had not used up additional funds, contrary to what happened under the previous administration, when millions of euro were spent on consultancies.