Updated 1pm - Added Gozo Channel statement
Virtu Ferries was by far the cheapest and the most technically compliant option for a fast ferry service for Gozo Channel, according to the final report of the evaluation committee set up to select a partner for the State company.
The report, seen by The Sunday Times of Malta, includes a technical and financial evaluation of the offers received.
It clearly shows that Gozo Channel would have paid €9 million less had it followed the recommendation to partner with Virtu Ferries instead of taking the option offered jointly by Captain Morgan Cruises and Magro Brothers.
Last week, The Sunday Times of Malta revealed that Gozo Channel had completely ignored recommendations made by a board of evaluators set up by the company in July 2017. After receiving instructions from the Office of the Prime Minster, the company rejected the recommendations and instead issued a fresh call for fast ferry providers.
After changing the board of evaluators and appointing as chairman Joseph Cuschieri, at the time chairman of the Malta Gaming Authority, the new committee recommended that Gozo Channel should partner with Captain Morgan Cruises and tomato products manufacturer Magro Brothers, deeming it the best option.
'The cheapest option'
Following the announcement by the Gozo Ministry that Gozo Channel will partner Island Ferries Network, formed by Magro and Captain Morgan, Virtu Ferries cried foul.
Virtu, which has been running the Malta-Sicily ferry service for decades, is contesting the decision in front of the Public Contracts Review Board.
Further investigation carried out by The Sunday Times of Malta showed that the first evaluation board, chaired by Anthony Valvo – who is a former Labour mayor of Xgħajra – and two other members made it crystal clear that Gozo Channel should choose Virtu Ferries.
Cheapest and most technically compliant by far
In the report, submitted on July 7, 2017, Mr Valvo and the other board members declared that Virtu had “the cheapest option overall and their proposal is technically compliant”.
The evaluation committee, set up by the board of directors of Gozo Channel, wrote that “considering that the fast ferry service is a new service the Committee suggests that the Company adopts the Scenario A proposal [of Virtu Ferries].”
“Following a period during which the service may be tested by Gozo Channel the company will be in a better positon to decide on the best solution to be negotiated with the operator,” the report’s conclusions state.
The final report comprises all the technical details and a comparative analysis of the bids of both Virtu Ferries and the Captain Morgan/Magro Brothers joint venture, including the vessels offered by the bidders and the prices which Gozo Channel would need to pay.
According to the option recommended by the evaluation committee, while Gozo Channel would have had to fork out €7.4 million over the course of five years to receive the fast ferry service from Virtu Ferries, it would have had to fork out more than double, €16.2 million, if it were to choose the Captain Morgan/Magro brothers option.
The evaluation committee showed in its analysis what this would mean: while Gozo Channel was going to pay €2,750 a day to operate the service through Virtu, it would have to fork out €6,800 a day if it wants to work with the Captain Morgan/ Magro Brothers joint venture.
Also, the report makes it clear that Captain Morgan and Magro Brothers do not have the necessary experience in the provision of fast ferry services and their offer was not compliant in a number of technical areas.
Government silence
The government has so far declined to reply to any questions to explain why it had decided to discard this first process and to re-start it while changing all the members of the evaluation committee.
Industry sources said that it was clear that the government did not like the result of the competitive expression of interest and issued a fresh call.
“The difference in the new call was that by then, all cards were on the table, including the prices and the technical secrets inc-luded in the bid”.
The government has so far refrained from giving any details of the winning second bid from Captain Morgan/Magro Brothers, stating that it cannot comment while another related tender – issued by the Transport Ministry to provide subsidies on the Gozo-Malta transport service – is still undecided.
The latter tender has been put on hold following the legal challenge of Virtu Ferries on the fast ferry partner.
'Two different tenders' - Gozo Channel
In a statement reacting to The Sunday Times of Malta story, Gozo Channel said that the fast ferry project featured "two separate tenders with different requirements."
This meant that the company "like every other company" had to conduct "two different processes which reflect its new needs."
The company "categorically denied" the information published by The Sunday Times of Malta while saying it was not willing to "undermine ongoing work and describe it in a series of statements and counter-statements."