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Bus companies demand millions in compensation

Taxpayers may end up paying tens of millions in compensation to companies which were not made part of the current bus services contract which ends in 2020.

Just the company “Nicosia Buses” is demanding compensation worth €30 million, with the report for the compensation being submitted last Monday.

It is worth noting that the initial estimation of the compensation for “Nicosia Buses” was much lower at €8-€8.5 million, an amount which the company considered too low.

The owed compensation is due to law which stipulates whichever of the existing bus companies in 2010 (the year in which the bus contracts until 2020 were signed) did not wish to be a part of the new bus organisations being formed, would be compensated, with “Nicosia Buses” choosing to abstain from the new companies formed, such as OSEL, EMEL, etc. As a result, their licences to conduct bus service on urban routes would be revoked.

“Nicosia Buses” owned 63 buses which, according to its president, Michalis Stefanides, could have been made available to the new companies being formed, instead of OSEL, EMEL and others buying new buses.

The public sector would essentially have made savings estimated at the value of the 63 buses (€4.5 million).

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