Metro-Bus system nationalized

559Views 0Comments Posted 09/09/2015

PANAMA’S STUTTERING Metro Bus system  hailed as a flagship achievement by the previous administration  will soon become state property.

 President Juan Carlos Varela saya  that the state will purchase 100 percent of the shares of Mi- Bus for $49.7 million, but with the assumption of the company’s $195 million debt,  the real price will be $245 million. t

The purchase includes 1,236 buses As part of the negotiation,Mi Bus  company withdrew an arbitration demand it filed in June 2014 against the transit agency ATTT for alleged violations of its concession.

The  transition process will begin in October and be completed by January 1. The 4,000 employeeseof Mi Bus will be expected to keep their jobs.

In 2014, Mi Bus generated $155 million in revenue.

Mi Bus had been granted a 25-year concession by the Martinelli government to operate the Metro bus system but complaints about poor service continued to multiply with regular confrontations between the government and Mi Bus often including the personal intervention of ex-president Martinelli.