The contract with the private firm will last for the next three years.
Bus Éireann will begin testing drivers for drugs and alcohol following an agreement with a private company who will carry out testing.
This follows the sacking of a Bus Éireann driver in January after he failed a garda breathalyser test while there were passengers on his bus.
Bus Éireann will pay the private firm €500,000 to carry out on the spot drug and alcohol tests of staff at stations and on the road.
Previously, all testing of Bus Éireann drivers was carried out by the CIE’s medical department. The company said that none of its 2,700 staff have tested positive for drugs or alcohol in the last 10 years, but the number of tests carried out was not disclosed.
The tests are due to commence by the end of this year and the private contract will over the next three years. The company has not yet decided how many tests will be carried out.