A new government-backed taxi service designed to eradicate cheating on fares will hit Bahrain's roads in December, officials have confirmed.

It will operate custom-made, metered vehicles, fitted with Global Positioning System (GPS) technology and connected electronically to a control centre, to ensure passengers are not overcharged.

All will have wheelchair access, said Economic Development Board deputy chief executive for special projects Osama Al Absi.

The private company Arabian Taxi will operate 300 cabs, 24-hours a day.

It will also run female-only taxis and have people carriers, capable of carrying nine passengers and offer customers the chance to hire taxis for set periods.

"I am hoping that we will see the first batch of 50 taxis hit the roads during National Day celebrations in December," said Al Absi.

The company will use the licences held by retired taxi drivers and their widows, orphans, who used to lease them out for money.

Instead, they have sold them to the new company and have become shareholders with monthly dividends.

This group makes up 80 per cent of shareholders, while the rest is owned by the Bahrain Development Bank, which is providing the finance to start the project. - TradeArabia News Service