Grand Harbour ferry contract extension still pending due to court appeal
A controversial three-year extension given to a Grand Harbour ferry operator is still pending due to a court appeal filed by Supreme Travel Limited against Transport Malta.
The transport authority told this newsroom it is unable to give comments about matters which are still pending before the courts or any other adjudicating bodies.
Government had given an extension to Marsamxetto Steamferry Services Limited after the company, a joint venture between the Zammit Tabonas and the Bianchi Group, filed a claim for compensation. The company claimed that it did not manage to recoup the investment it made when it was awarded the original concession in 2012 due to Transport Malta’s failure to build the required infrastructure and a court case that had been launched by water taxi operators. It also recently cited the Covid-19 pandemic as another factor for loss of business.
Around four months ago, this newsroom reached out to the respective authorities to find out why the concession was extended without a public call and why the private company was being given special conditions. However, at the time TM had refused to answer questions on the matter as the contract was currently under review by the Public Contracts Review Board.
Consequently, The Malta Independent on Sunday reached out once again to the respective authorities for an update regarding the matter.
TM explained that “although the Public Contracts Review Board (PCRB) gave a decision by virtue of which it upheld a preliminary plea raised by the authority, the appellant, Supreme Travel Limited, filed an appeal from the said judgement in front of the court of appeal”.
Therefore, TM confirmed that the “matter is still sub judice and it is not the authority’s policy to give comments about matters which are still pending before the courts or any other adjudicating bodies”.
Government was bound to issue a new tender when the original eight-year concession expired, but this never occured. The contract review was launched in light of a challenge filed by Supreme Travel, which was also interested in providing harbour ferry services. The company contended that the extension to the original concession is not valid in terms of law and should therefore be deemed ineffective. Supreme Travel argued that a decision of this sort would only give current operators an advantage over potential competitors.
In addition, Supreme Travel had also said that it was unaware of when the said extension was formalised as nothing was ever published or made available for scrutiny.
Meanwhile, Marsamxetto’s lawyers had argued that “the Contracting Authority had clear and justifiable reasons to request that Marsamxetto keeps providing scheduled ferry services during the Covid pandemic and enters into an addendum settling a hefty claim through a reasonable extension of the existing term. The Authority has therefore acted in the best interests of the general public as it is bound to do”.