Valletta Luxury Projects, a consortium composed of Eden Leisure and Iniala owner Mark Weingard, said Malta stands to lose out on over €100 million because of a mathematical error.
VLP had won a competitive bid to develop the Evans Building building into a luxury hotel with a proposal to bring the Anantara brand to Malta’s shores.
The consortium pledged to pay a total of €78 million over the 65-year concession period, which it said was over €37 million higher than the second-placed bid.
It said that, based on historical CPI projections, the Anantara bid would have equated to over €100 million in additional value for Malta over the 65-year period.
Eden Leisure CEO Simon De Cesare
However, following an appeal by two rival bidders, the Public Contracts Review Board annulled the contract on the grounds that VLP had at one point listed its total bid at €1.2 million.
VLP pointed out that this was a clerical error, with the €1.2 million figure representing the annual concession fee and not the total fee. Indeed, other sections of VLP’s bid consistently cited €78 million.
Although the evaluation committee agreed with this argument, the Board overturned this decision, arguing that the committee had altered VLP’s bid in violation of procurement law. It ordered the reevaluation of the tender and completely disqualified VLP from the process.
“Our consortium submitted what was clearly the strongest proposal in the process. The bid achieved full marks across all qualitative evaluation criteria and presented a compelling vision for the restoration and operation of one of Valletta’s most important historic buildings,” VLP said in a statement.
Iniala owner Mark Weingard
“The project was designed by Ray Demicoli, one of Malta’s most respected architects and the creative force behind landmark developments such as Portomaso. The operational partnership would have brought together two internationally recognised hospitality operators with proven experience in delivering world-class destinations.”
“Financially, our proposal was also by far the most advantageous for Malta. Our offer was approximately €37 million higher than the second-placed bid, representing a substantially greater return for the Maltese public. Over the 65-year concession period, based on historical CPI projections, this difference equates to more than €100 million in additional value for the country.”
“Malta stands to lose more than €100 million because the highest-scoring and highest-value bid has been rejected over a mathematical error, despite the financial commitment being clearly demonstrated throughout the tender documentation.”
“We firmly believe that public procurement should prioritise both fairness and the long-term interests of the country. Rejecting the strongest technical proposal and the most financially beneficial offer on this basis risks depriving Malta of substantial economic value and an exceptional hospitality project for Valletta.”
The consortium said it will now pursue this matter through the courts.
