Updated | Court upholds award of public transport contract to Autobuses de Leon

A court has rejected an application for a warrant of prohibitory injunction- intended to stop the authorities from entering into any contractual agreements with the Spanish bus operator Autobus de Leon- which was filed by Island Buses Malta against Transport Malta and the Ministry for Transport in November.

The decision, given in chambers by judge Jacqueline Padovani Grima, also revokes a temporary injunction to the same effect, which had been issued by judge Mark Chetcuti .

Autobus de Leon had been awarded the tender, against competition from Island Buses and Gozo First Travel, after the government expression of interest closed on April 7.

Island Buses, a Maltese consortium that had sought to be Malta’s transport operator, had argued 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 the Maltese consortium.

Lawyers representing Island Buses Malta had argued that Transport Malta had shifted the goalposts, to the detriment of their client, citing a €23 million government subsidy to the Spanish operator and the fact that they would be allowed to start off with a partial bus service – contrary to a condition in the expression of interest stipulating that the provider chosen would be obliged to provide full service from the outset.

Judge Jacqueline Padovani Grima, making reference to the recent judgment in a similar case filed by Dragonara Gaming Limited against Minister of Finance, held that the injunction was not necessary to protect the rights of the plaintiffs at the stage it was requested at, because it had the option to challenge the award through a court case.

Neither was the potential damage caused to the plaintiff irremediable, as there was still the possiblity that the negotiations between Autobuses De Leon and Transport Malta could collapse, which would mean that negotiations could then continue with Island Buses.

Finally, the judge held that the prejudice caused to the plaintiff were its request rejected “did not begin to compare” with that which would be caused to Transport Malta and the government were the process to suddenly stop.

On one hand the possible damages caused to Island Buses would  consist in loss of profits, whilst on the other hand, not  only is the government paying thousands every day to maintain the temporary public transport service after the departure of Arriva, but the halting of the process selecting Arriva’s successor would negatively affect thousands of Maltese citizens.

In a reaction to the judgement issued this evening, Minister for Transport and Infrastructure Joe Mizzi welcomed the decision, saying that the government will keep its promise to the people and introduce a new public transport service in January. 

“From next January, the new routes will be gradually introduced. This comes after a wide consultation with local councils, stakeholders and the public without extra taxes being paid by the Maltese people” said Mizzi, contrasting it with “what happened in the past when millions of euros were paid in consultancy fees to introduce new transport routes”.