Brisbane's $1.2 million bike hire scheme will proceed as planned despite one of the leading bidders for the contract withdrawing from the process this morning.
Adshel said it was forced to remove its bid for the contract to run the scheme, which would introduce 2000 public bikes to central Brisbane, due to "the deterioration of the global economic climate since the time the offer was first submitted".
An Adshel spokeswoman told brisbanetimes.com.au that it had the know-how to run the scheme but lacked capital expenditure.
One of Adshel's parent companies, Clear Channel, runs a bike hire scheme in Barcelona.
"It [the Barcelona scheme] was implemented in a better financial climate," Adshel's spokeswoman said.
But brisbanetimes.com.au understands JCDecaux was already the frontrunner for the tender, and is now almost guaranteed to win the contract.
A Brisbane City Council spokesman said an announcement would be made before the end of January.
"Brisbane City Council remains committed to the introduction of its planned Public Bike Sharing Scheme," the spokesman said.
"The scheme is expected to be based upon similar projects already established in more than 40 international cities, including Paris and Barcelona, and is anticipated to incorporate up to 2000 bicycles."
But Labor's Shayne Sutton said the council needed to reassure Brisbane residents that the tender process was still competitive.
"The Lord Mayor must ensure that ratepayers receive value for money when awarding the contract for the project,'' she said.
Adshel CEO Steve McCarthy encouraged Brisbane City Council to "critically assess the long-term viability of the bike scheme in the current market conditions".
"Considering the appeal of the bike scheme project and the substantial time that both Adshel and the Brisbane City Council have invested so far, we regret that we cannot proceed with our offer due to conditions beyond our control," Mr McCarthy said.
Adshel said it would have considered reapplying for a scaled back project, but the council said it would proceed with the scheme as originally planned.
The bike hire scheme, part of the council's long-term transport plan, will see bikes at up to 150 stations from Newstead to the University of Queensland.
Cr Sutton said the council also needed to confirm the roll-out date for the project, which was originally set for mid-2009.
Adshel has an ongoing contract with Brisbane City Council to provide 840 bus shelters across the city.
A JCDecaux spokesman referred all inquiries to Brisbane City Council.
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