Delay to new bus contract now comes at a cost to Guardamar

The TSJCV ruling leaves Guardamar with an uncomfortable conclusion: extending a public service without a current contract does not remove the obligations involved; it can instead leave residents facing a cost. The Town Council must explain how the situation arose and speed up a new tender which, according to the mayor, has been pending for two years and remains stalled over technical issues.

The court has upheld Avanza Movilidad Levante’s appeal and overturned the plenary council agreement of 4 October 2024, which required the company to keep running the urban bus service until 30 October 2026 or until a new contract was awarded. The ruling says that an expired contract cannot be extended by a unilateral decision of the plenary council, and recognises the operator’s right to compensation for continuing to provide the service.

The bill has yet to be finalised. Compensation will be calculated by subtracting costs from revenue, with 6% added for industrial profit, as well as interest, for the period specified and for as long as the company continues to operate. The contract, signed in 2003, is worth more than €300,000 a year; in 2021, its term was extended by 15% because of the impact of Covid, until October 2024. These figures make it essential to manage contracts rigorously: keeping the service running is necessary, but failing to award a new contract in time cannot become an indefinite solution.

Mayor José Luis Sáez has said that the service will continue to operate on a provisional basis and under the current conditions for an undetermined period. Continuity may prevent disruption for passengers, but it does not replace the duty to plan and tender the service, or to provide legal certainty. Nor is it enough to wait for the compensation to be determined: the court ruling shows that delays have consequences.