€10,600 a day earmarked for hire of Gozo Ferry’s MV Nikolaos replacement

The government, through Gozo Channel, is preparing to spend at least €10,600 a day to lease a replacement for the ageing MV Nikolaos, finally moving to retire the controversial vessel after six years of costly “temporary” service on the Gozo Channel route.

A new €7.74 million international tender issued by Gozo Channel seeks to hire a modern roll-on/roll-off passenger ferry under a two-year time charter agreement, with the option to extend the contract further if required.

The estimated value of the contract means taxpayers are expected to foot a bill of around €10,600 a day before VAT, excluding fuel and other operating costs.

The move follows years of criticism over the government’s reliance on the 40-year-old Greek-built MV Nikolaos, which was introduced to Gozo Channel’s fleet in 2019 as what ministers described as a temporary solution while plans for new ferries were being prepared.

Instead, the vessel remained in service for six years and, if a suitable replacement is found through the latest tender, is only expected to be retired in April 2027.

Since 2019, The Shift has repeatedly exposed how the government was paying between €10,000 and €13,000 a day to lease the ageing ferry through opaque arrangements – the government has refused to publish the contract despite repeated Freedom of Information requests.

The Shift also revealed that the vessel’s certified passenger capacity had been drastically reduced during the winter months due to its age, leaving Gozo Channel operating a poorer service while continuing to pay the full lease price.

Despite repeated assurances that the MV Nikolaos would soon be replaced, successive procurement attempts failed.

Tenders issued in recent years failed to attract bidders, forcing Gozo Channel to continue relying on the ageing ferry while taxpayers continued paying millions in lease costs.

The latest procurement is intended to finally replace the vessel with a newer ferry.

However, whether Gozo Channel will succeed this time remains uncertain.

The company has already experienced failed procurement exercises for a replacement vessel, raising the possibility that, if no suitable bids are received once again, the MV Nikolaos could remain in service for even longer.

The new tender allows for a two-year lease and includes provisions for extending the agreement, suggesting the replacement vessel could remain in service beyond the initial contract period.

Earlier this year, after years of delays and criticism over the lack of any long-term strategy, the government announced a €130 million investment programme to renew the Gozo Channel fleet. The pledge was also repeated in the party’s electoral programme.

The plan envisages the construction of two new passenger ferries and the conversion of one existing vessel into a cargo ferry, creating a four-vessel fleet capable of meeting future demand.

However, those plans remain at a very early stage.

Apart from the announcement made in January, no procurement process has yet been launched for the construction of the new ferries, and they are not expected to enter service before 2029.