Legal challenge to Comino ferry concession launched

Comino is making headlines again due to an unprecedented legal challenge against a government concession awarded in 2020 for a scheduled passenger service linking Malta, Gozo, and the Blue Lagoon.

Blue Waves Marine Company Ltd, a competitor that transports passengers to the island, is requesting that the Public Contracts Review Board (PCRB) annul a lucrative 15-year concession awarded to Comino-Ferries Cooperative.

The company claims that Transport Malta has changed the rules of the concession and that the government has not ensured that the terms promised in the concession contract are being upheld.

According to the legal challenge, the concession should be declared null and a new tender issued.

The complainants, represented by their lawyers at Ganado Advocates, asserted that the Cooperative failed to introduce two eco-friendly boats as required and is not providing ferry services to Santa Maria Bay as specified in the contract. Instead, they are only transporting passengers to the more popular Blue Lagoon Bay.

Additionally, the complainants claimed that Transport Malta has not upgraded the berthing facilities on the Blue Lagoon side, which includes the construction of new quays, despite being obliged to do so under the concession contract.

Blue Waves is opposing the government’s introduction of a visitor cap for Blue Lagoon, implemented this summer. They argue that this cap has unfairly favored the Cooperative while discriminating against numerous other private and small operators who provide transportation services to the island.

The challenge states that while all other service providers require passengers to have a pre-arranged permit to travel from Malta to Gozo and land at the Blue Lagoon, those who choose the Cooperative’s scheduled service do not need to obtain this permit. The necessary arrangements are already included in the tickets issued by the Cooperative.

According to the challenge, this practice is discriminatory and amounts to unfair competition.

Blue Waters is seeking to nullify the concession granted to the Comino-Ferries Cooperative and is also requesting compensation for the business losses they have incurred due to Transport Malta’s failure to uphold the terms of the public concession contract.

The exclusive concession was awarded to the Cooperative following a tender process in 2019, in which it was the sole bidder.

In recent years, the Blue Lagoon has become a contentious issue, primarily due to its lucrative business potential and the lack of oversight from the authorities in a protected area.

This has led to the area becoming a free-for-all. Public land encroachments have been allowed to operate illegally and expand for years, while numerous kiosks selling various food and alcoholic beverages have been established without proper permits.

Following a change in leadership at the Tourism Ministry earlier this year, new regulations have been introduced. These rules limit the number of visitors allowed on the island and commit that starting in the summer of 2026, all existing encroachments and kiosks will need to be regulated, issued through a tender process, and reduced in number.

The Shift reported that while the number of visitors to the island has decreased this year—although not to the desired levels—the chaos has now spread to the surrounding sea. Small boats, mostly rented or operated by inexperienced Asian boatmen, create daily disturbances with uncontrolled, alcohol-fueled parties and loud music, making it very dangerous for swimmers enjoying the crystal blue waters.

Adding to the chaos is the absence of Transport Malta enforcement dinghies, which used to patrol the area for years.