A court is expected to rule this week on an appeal against the decision that overturned the original Evans Building concession.
Valletta Luxury Projects, a consortium composed of Eden Leisure and Iniala owner Mark Weingard, filed an appeal after its winning bid was annulled by the Public Contracts Review Board (PCRB).
The consortium had won an initial competitive bid with a proposal to bring the luxury hotel brand Anantara to Malta’s shores, pledging to pay a total of €78 million over the 65-year concession period.
However, following an appeal by two rival bidders, the PCRB annulled the contract on the grounds that VLP had at one point listed its total bid at €1.2 million, rather than €78 million.
VLP pointed out that this was a clerical error, and that the €1.2 million figure represented the annual concession fee and not the total fee.
However, the PCRB ordered the reevaluation of the tender and completely disqualified VLP from the process.
Before filing an appeal, VLP warned that the overturning of its decision was a blow to Malta.
It argued that its bid was around €37 million higher than the second-placed offer, a difference it said would translate into more than €100 million in additional value for the country over the 65-year concession period.
“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,” it said.
“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.”
Another appeal was filed by Iconic Hotel Malta, a consortium made up of European School of English Ltd (which the Bianchi family has invested in) and Arrigo Group of Hotels Limited, who had proposed turning the Evans Building into a Nobu hotel.
Iconic’s bid was disqualified by the evaluation committee over the methodology used to calculate its gearing ratio, although it is stressing its bid fully satisfied the tender’s mandatory financial requirements.
If VLP's appeal fails, the frontrunner for the concession would appear to be PLAN Group (formerly Katari), a development firm founded by Paul Attard.
Other bids for the development of Evans Building had also been submitted by AX Group, Hili Ventures’ HV Hospitality, and db Group's Seabank Hotel and Catering Ltd.
