THE government left out an inter-island service requirement from Jersey’s ferry contract without carrying out any formal risk assessment, it has emerged.
The Comptroller and Auditor General’s latest report also revealed that no documented review of the risks or benefits of awarding a longer 20-year contract to DFDS was carried out.
Released today [FRIDAY], Lynn Pamment’s second report about the Island’s critical infrastructure resilience – focussing on transport links – includes a section on sea connectivity.
It notes the procurement process to secure a new ferry provider, which began as a pan-island tender in May last year but collapsed in October, when Guernsey revealed that it had decided to appoint Brittany Ferries – Condor Ferries’ majority owner – as its preferred bidder.
DFDS won the subsequent Jersey-only tender and signed a 20-year contract to provide passenger and freight services to the UK and France, which began at the end of March.
“In the single-Island tender, the Government of Jersey made a decision to award a
longer term concession agreement than had been specified for the joint exercise,” Ms Pamment stated in her report.
“However, no formal assessment of the impact, benefits and risks was documented. The decision to award a 20-year contract has committed the States to an exclusive provider for a period a third longer than was originally specified.”
Ms Pamment also noted that the agreement did not include an inter-island ferry service.
“While this was understood, there is no documented impact assessment against risk appetite to underpin this decision,” she continued.
“Instead, the significant reduction in inter-island provision was accepted in the short term without the ‘value added’ being fully evaluated.”
In June, DFDS began inter-island sailings to Guernsey, offering a roundtrip on Mondays.
The announcement followed months of speculation over the level of inter-island connectivity that would be available this year.
Condor has been running weekly crossings between Guernsey and Jersey, while Guernsey-based company Islands Unlimited operates daily sailings between the islands.
In her report, Ms Pamment acknowledged that “steps have since been taken to establish an increase in ferry connectivity between Jersey and Guernsey”.
When asked for comment by the JEP, the government said it would respond directly to the C&AG.
