The Ministry will conclude all public service contracts for such transportation services, making the Ministry one of the most influential contracting authorities in Estonia.
TGS Baltic team assisted in drafting public service contract and procurement documents for the provision of passenger ferry services between the ports of Virtsu-Kuivastu and Rohuküla-Heltermaa. We also advised the Client during the public procurement procedures. This is a critical procurement for Estonia's transport and logistics connection. The tender resulted in the selection of the ferry operator who will exclusively provide ferry connection between mainland and Estonia's largest islands (Saaremaa and Hiiumaa).
It was also the most expensive public procurement in 2023 and will cost around 250 000 000 EUR. Drafting this contract was a legal challenge. The contract included novel clauses regulating a reasonable profit margin to help prevent overcompensation, to put it simply: so that government would not pay too much to the monopoly for the ferry connection service.
TGS Baltic attorneys also regulated what happens if the fifth ferry, guaranteed by the State, did not start operating on time. Four ships are to be provided by the undertaking, but one ferry will be built by the State. The contract also provides specific remuneration indexation. This public procurement is carried out every 7 or 10 years, making it an extremely rare opportunity for legal advisors.
