Good practice:

Cost Benefit Analysis (CBA) to assess the feasibility of electric buses in the region

The idea for the introduction of e-buses in Gozo started with the Ministry for Gozo being part of the SMITHS project. The SMITHS definition was developed by the Malta National Electromobility Platform and ITS within the Sustainable Mobility Unit of Transport Malta (the National Authority for transport in Malta) who decided to implement this type of solution within the national and local transport context.

Prior to purchasing the buses a CBA was done to assess the demand for a park and ride system in Gozo and also the feasibility of using electric buses for this system. Feedback from stakeholders was taken and the benefits of having a transport service using e-buses were found from this analysis. What was concluded from this study is that while this project is not expected to generate a positive return on investment from a financial perspective, it is expected to positively increase society’s welfare. More specifically, the economic analysis shows that the project will ameliorate the livelihood of Gozitan commuters.

The main stakeholders of this practice are the Ministry for Gozo which is responsible for the implementation of the electric-bus park & ride system as well as all other regional and business organisations in Gozo. The main beneficiaries will be the daily commuters who will make use of the buses as well as residents who will enjoy a better quality of life by having less pollution due to traffic congestions.

The funding required for this good practice was €5,000 (exc. VAT), needed to commission work to a company for the CBA.
To do this good practice an adequate staff to be able to formulate an adequate CBA was needed. This included a project manager and an economist as well as other ancillary staff.

Feedback from stakeholders was taken and the benefits of having a transport service using electric buses were found from this analysis
The CBA study showed that the project is expected to positively increase society’s welfare and the livelihood of Gozitan commuters.

This Good practice ensures that the territory is aware of the risks and benefits that can arise from such a project.

Being a Cost Benefit Analysis, this is a theoretical analysis of the costs and benefits of such a project and therefore may not necessarily be a comprehensive statement of all weaknesses, strengths, risks and opportunities that exist.

This good practice may be useful for territories which like Malta do not yet have an electric bus fleet since it is a practice which helps to make the territory more aware of the costs and benefits associated with such a project.