In a statement this evening the Government said it wants to clarify public service compensation for public transport. “The vote in the Budget 2012 estimates covers both the public service compensation for Malta and for public service compensation.

The total Public Service Compensation payable to Arriva, over the 10 year period of the contract, for the provision of public transport in Malta alone is equivalent to €4.57 million per annum. The last ATP subsidy was equivalent to €9.6 million per year and was, obviously, for Malta only.

The contract payment terms specify that payment for compensation for the Malta operation is to be made as follows: (i) €6.6 million from Year 1 to Year 3 and €3.7 million payable from Year 4 to Year 10. This information is in the public domain as the payment terms and the creation of a subsidy for Gozo have been public for some time.

The amount included in the financial estimates for 2012 does not take into account the additional compensation payable in respect of route changes as discussions in this regard are still ongoing between Transport Malta and Arriva.

The amount included in the estimates does however take into account the new subsidy of €1.625 million per year for compensation for service in Gozo.

Permalink: Clarification on public service compensation for transport