LibertyBus will continue running Jersey's bus service for the next decade.
The company - part of the Tower Transit Group - been awarded a new 10 year contract.
The government said, of the three shortlisted bids, LibertyBus offered the best value for money and range of service improvements.
The deal includes replacing older vehicles with 22 new ultra low emissions ones in the first year. The remainder of the fleet will be refurbished.
There is also a commitment to exceed the number of services and routes the tender required, to install ticketing machines at Liberation Station and to rollout faster ticketing on the bus fleet.
Constable Andy Jehan, Minister for Infrastructure, said: “This new contract reflects the Government’s commitment to improving public transport while supporting our carbon-neutral ambitions.
"We are pleased to continue our partnership with LibertyBus and look forward to seeing the positive impact of the new buses and service for Islanders.”
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