The government has cancelled the tendering process for a fast-ferry service between the two islands, for the second time in two-and-a-half years.
It is the latest development in the saga to award the concession to a company that would partner Gozo Channel Ltd.
Last August, the Public Contracts Review Board ordered Gozo Channel to nullify a €20 million contract for the fast-ferry service it had signed with Islands Ferry Network and re-start the evaluation process of the two shortlisted bidders, the other being Virtu Ferries.
However, in an unexpected move, Transport Malta has now informed the two bidders that it has cancelled the process.
It justified the move by saying that “the economic and technical parameters of the concession have been fundamentally altered”.
The move may mean that Gozo Channel and Transport Malta will issue a third call for the same service, after the concession was originally awarded to Virtu, cancelled, awarded to Island Network after a second call, and then nullified by the review board.
Transport Malta was asked what effectively changed in the concession, whether the government intends to issue a third call or whether it will scrap the whole fast-ferry project. No replies were received by the time of writing.
When contacted, a spokesman for Virtu Ferries expressed the company’s surprise over the latest development.
“We are extremely disappointed that the tender has again been cancelled. We are monitoring developments very closely,” he said.
Islands Ferry Network, a consortium formed by tomato goods producers Magro Brothers and the owners of the Fortina Hotel, declined to comment.
Labour had made the introduction of a fast ferry service between Malta and Gozo an election pledge in 2013.
The not-so-fast ferry selection process
April, 2017: The Transport Ministry issues request for proposals (RfP) for a public service concession contract for a passenger and vehicle service between Malta and Gozo including a fast-ferry service.
May, 2017: Gozo Channel issues Preliminary Market Consultation (tender) to find a partner company for the provision of fast-ferry service.
July, 2017: Gozo Channel appoints evaluation committee to decide on best bid.
Late July 2017: Evaluation committee reports to Gozo Channel that Virtu Ferries made best offer.
Summer 2017: Gozo Channel starts negotiations with Virtu Ferries to conclude agreement.
January 25, 2018: Transport Ministry cancels the RfP.
January 26, 2018: Transport Malta issues a slightly modified RfP.
February 9, 2018: Gozo Channel issues a slightly modified new tender. Cancels talks with Virtu.
March, 2018: Following OPM instructions, Gozo Channel appoints new evaluation committee headed by Joseph Cuschieri, at the time chairman of Gaming Authority.
April 10, 2018: Islands Ferry, a joint venture between Magro Brothers and Fortina Investments Ltd, is registered as a company.
April 13, 2018: Gozo Ministry announces selection of Islands Ferry to partner Gozo Channel for fast-ferry services.
April 20, 2018: Virtu Ferries asks Public Contracts Review Board to suspend the tender.
May, 2018: Gozo Channel ignores objections and signs contract with Islands Ferry Network.
June 22, 2018: Virtu Ferries asks PCRB to revoke the contract due to a ‘vitiated’ deal.
August 23, 2018: PCRB upholds request for an extension of the tender and to include modifications as requested by Virtu.
September 11, 2018: PCRB turns down request to cancel Gozo Channel contract with Islands Ferry Network, arguing that it has no competence over the issue.
October 1, 2018: Virtu Ferries appeals in court and insists that contract with Islands Ferry should be cancelled.
March 11, 2019: Court of Appeal declares that Gozo Channel was obliged to follow public procurement rules. Asks PCRB to decide according to its directions.
August, 2019: PCRB declares null the contract with Islands Ferry Network, orders Gozo Channel to appoint a new committee and to evaluate the two existing bids afresh while giving more weight to technical aspects.
September, 2019: Transport Malta again cancels the tender. No details given on way forward.