30th Sep 2014 12:09
LONDON (Alliance News) - National Express Group PLC said Tuesday that its joint venture, Bahrain Public Transport Company, has been awarded a 10 year contract to operate bus services by the Bahraini Ministry of Transportation.
The international public transport group, which operates bus, coach and rail services in the UK, Continental Europe, North Africa and North America, said the contract is set to commence February 15, 2015 and is expected to deliver revenue in excess of GBP170 million to the joint venture over the 10 years.
Under the terms of the contract, through its subsidiary, NX Bahrain Bus Company, National Express has entered into a 50/50 joint venture with the Bahraini conglomerate Ahmed Mansoor Al A'Ali to form Bahrain Public Transport Company which will hold the concession.
The contract will initially see 141 new vehicles serve the capital Manama and inter-urban routes across the entire Kingdom of Bahrain, said National Express in a statement Tuesday.
"The contract win is significant as it opens a new regional market for National Express, providing a springboard for further opportunities currently emerging across the Middle East," said the FTSE 250-listed company.
"We expect this win to provide a platform for further expansion in the region and our team are already working on other opportunities," added Group Chief Executive Dean Finch,
Under the joint venture terms, NX Bahrain Bus Company and AMA will each contribute equity funding of approximately 2 million Bahraini Dinars funding, approximately GBP3.3 million. National Express will fund its contribution from its existing financial resources.
Shares in National Express Group were Tuesday trading 0.29% higher at 238.70 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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