The Hungarian city of Baja has awarded a contract to provide local public bus transportation to commercial long-distance coach company Orangeways, mayor Zoltán Révfy said on Thursday.
Orangeways beat two other bidders in the tender, promising a higher level of service for the same price, Révfy said. The contract is for one year, but the local council is expected to call a tender for a ten-year contract based on the experience in the first year, he added.
The local council is awarding Orangeways a HUF 39 million subsidy, Révfy said, answering a question by MTI.
Orangeways CEO Miklós Kovács told MTI that the company had bid in the tender at its own risk, buying ten used DAF buses from a seller in the Netherlands for the job. The buses will be delivered to Baja by year-end, he added.
Baja has 38,000 residents.
Orangeways already provides public bus transportation in a another city as a sub-contractor for state-owned Gemenc Volán.
Orangeways expects to close 2009 with net revenue of more than HUF 1 billion. About one-third of the company's revenue comes from domestic routes. (MTI-Econews)