€23 million subsidy for bus service set to increase

Transport Malta’s expression of interest and subsequent discussions with preferred bus operator Autobuses de Leon were “vitiated” from the start as the tender’s goalposts were changed to the disadvantage of a Maltese consortium, a court heard today.

The remark was made this afternoon during the submissions on an application for an injunction filed by Island Buses Malta against Transport Malta and the Transport Ministry. The prohibitory injunction was partially upheld in November, and as a result, the government and Transport Malta were prohibited from signing any contracts with Autobuses de Leon.

Lawyers representing Island Buses Malta – the Maltese consortium that sought to be Malta’s transport operator – argued that Transport Malta had shifted its goalposts, leading their clients to feel disadvantaged.

Dr Nicholas Valenzia argued that in light of Transport Minister Joe Mizzi’s recent admission that Autobuses de Leon would be given a €23 million subsidy for a phased-in service, the government was giving a concession not listed in the expression of interest.

Moreover, the lawyer said the Spanish bus operator would start off giving a partial service and not a fully-fledged service, even though the expression of interest stipulated that the chosen provider must start giving a full service immediately.

“Had my clients known that the government would negotiate the subsidies and the option for a phased-in service, they would have tabled a more competitive bid and would have requested a lesser subsidy figure of €40 million,” the lawyer held.

Moreover, the plaintiff held that according to the expression of interest, the amount of subsidies needed for the administering of the service needed to be calculated up-front and that in accepting the offer of a phased-in service, TM was “exercising discretion beyond its powers and not within the parameters established in the EOI.”

“The whole process was null from the outset. Transport Malta shifted goalposts, leading to my client feeling disadvantaged. Had we known of the negotiation of the terms and conditions, we would have tabled a more competitive bid,” he said.

On his part, Dr Louis Degabriele, a Transport Malta lawyer, said that the €23 million subsidy only covers the phased-in service, and this would increase once the fully-fledged service starts.

Nevertheless, Dr Degabriele said that negotiations between Transport Malta and Autobuses de Leon are still ongoing, and the amount of subsidy could change.

The lawyer also said that in spite of its request, Island Buses Malta have not given any reasons to justify its request. Moreover, he also said that the normal remedy to attack the adjudication of a contract would be the filing of a case before the Administrative Review Tribunal.

However, this was rebutted by Island Buses which said that it could not exhaust the normal remedies since the time period had elapsed, and it was only recently that all the facts emerged in the media.

A final decision is to be taken on 17 December by the presiding Judge Jacqueline Padovani Grima.