Buġibba fast ferry plans hit rough waters as tender faces legal challenge
Operator cries foul over 'unfair' conditions, halting promised launch later this month
Transport Minister Chris Bonett's ambitious plan to launch a new fast ferry service between Sliema, Buġibba, and Gozo this summer has run aground after a ferry company complained the tender has deadlines and conditions that go against EU rules.
Supreme Travel Limited, better known as Ta' Ċanċu, are arguing that the tender's tight submission deadline, restrictive selection and technical criteria, and rapid implementation timeframe are designed to unfairly favour existing subsidised fast ferry operators.
They lodged a legal challenge lodged with the Public Contracts Review Board (PCRB) last week.
The tendering process for the fast ferry service began on July 2 and was set to conclude this week but the legal obstacle is now likely to delay the launch, which was promised for later this month.
Supreme Travel, represented by lawyer Reuben Farrugia, urged the PCRB to suspend the tender and necessitate a redrafting that adheres to EU competition regulations.
It argued that the 21-day period for submitting proposals is insufficient and breaches a law that stipulates a minimum of 30 days for concession tenders.
The company asserts that the compressed timeline does not adequately account for the complexity of the concession and the time required to prepare a comprehensive offer, potentially favouring incumbent operators.
The objection highlights the European Commission's interpretation, which views overly short periods as potentially favouring incumbent shipowners and violating the principle of equal treatment.
The company also took issue with the technical ability criteria, specifically those that demand experience with high-speed craft (HSC) or dynamically supported craft (DSC) for at least two consecutive years between 2020 and 2024, and a track record of no less than 10,000 maritime passenger trips by HSC/DSC vessels within the same period.
Supreme Travel argues these requirements are "disproportionate", "discriminatory", and stifle genuine competition, particularly for operators like themselves who have extensive experience with passenger vessels on similar routes but not necessarily with HSCs or DSCs due to the financial impracticality of operating such vessels without subsidies in Malta's territorial waters.
They allege the criteria unfairly benefit incumbent operators who may have operated HSCs or DSCs under public service contracts.
The objection also targets the 21-day period for the successful bidder to commence services after the contract is finalised, claiming it is too short and unduly favours incumbent operators with readily available HSCs or DSCs.
Ministry cites 'pressing public interest'
In a preliminary response, the Transport Ministry conceded that it did not strictly follow all rules, particularly concerning the submission timeline, citing "pressing public interest" for a swift launch.
However, the ministry denied any intent to grant an unfair advantage to other competitors. It said the tender was issued in full compliance with the law and procurement procedures.
It said the timeframe was set considering the service's urgency and electronic submission, which allows the submission period to be reduced from 30 to 25 days.
It emphasised that no bidder sought an extension during the clarification period, suggesting the timeframe was initially deemed adequate. But it said it was willing to extend the deadline to 25 or 30 days if directed by the PCRB, as a gesture of cooperation.
The ministry also defended the requirements for HSC/DSC experience and the 10,000 passenger trip threshold as reasonable and relevant for a fast ferry service.
It said these criteria are non-discriminatory and proportionate to ensuring the chosen operator is qualified and capable, and are in line with the law. Requiring relevant sector experience is standard practice to safeguard performance, it said.
The Public Contracts Review Board will now consider the arguments from both parties.
Bonett had announced the new fast ferry service on July 2, immediately after inaugurating a new breakwater in Buġibba, promising its commencement by the end of August.