Appeals commission overturns island ferry tender decisions

Estonia’s Public Procurement Review Committee has annulled decisions accepting and selecting Tuule Liinid OÜ’s bid for ferry services to small islands, ERR reported.

The Regional and Agriculture Ministry published the tender in March and received bids from four companies, including Tuule Liinid and a joint bid from OÜ Spinnaker and EF Production OÜ. In late August, the ministry named Tuule Liinid the new operator under a five-year contract covering routes between the mainland and Vormsi, Kihnu and Manilaid, as well as the company’s existing routes serving Ruhnu.

Tuule Liinid’s proposed annual cost for all routes was €7.4 million excluding VAT, broadly in line with current costs.

Spinnaker challenged the ministry’s decision in early September, arguing that a replacement vessel listed in Tuule Liinid’s bid did not meet tender requirements and that the ministry had not checked whether the bid’s price was unjustifiably low. Spinnaker also raised concerns about other information in the bid.

The ministry disputed the claims, saying many were based on assumptions because Spinnaker did not know the replacement vessel’s details or the full contents of Tuule Liinid’s budget. It maintained that its decisions were lawful.

The committee upheld the challenge on Tuesday and annulled the ministry’s decisions to accept and select Tuule Liinid’s bid. It also ordered the ministry to pay Spinnaker €10,750 excluding VAT for legal representation and €2,560 in state fees. The ministry and Tuule Liinid must cover their own costs.

The decision has not entered into force. The parties have 10 days to appeal it in administrative court.