We represented the Estonian ferry operator Kihnu Veeteed in a dispute with the Viimsi municipal government concerning public procurement for the Prangli ferry route.
This was a landmark case, as no similar case is known in the past decade of administrative practice in which a procurement dispute was resolved following a precept from the Ministry of Finance.
Lawful assessment of the tenders was not possible
The Viimsi municipal government had banned cross-subsidisation and set minimum prices for certain cost components. Tender evaluation was based solely on the costs presented for two cost items.
However, the municipality had failed to clearly define which expenses these cost items were meant to cover, making it impossible to verify compliance with the cross-subsidisation ban or to compare the tenders fairly.
Following the dispute and additional submissions being lodged during dispute proceedings, the Public Procurement Review Committee referred the matter to the Ministry of Finance. The Ministry subsequently issued a precept ordering the Viimsi municipal government to annul the procurement, as the conditions set made lawful evaluation of the tenders impossible. The Viimsi municipal government complied with the precept.
Our services and client team
We represented the client during proceedings before the Public Procurement Review Committee and advised on all legal issues related to contesting the decision.
Kihnu Veeteed was represented by partner Dr Kadri Härginen, with support from senior associate Mario Sõrm.
