Rabat road costs shoot up by €2.2 million

The construction of a new road in Rabat cost taxpayers over €2 million more than the original estimate.

An analysis by The Shift of multiple lists of direct orders issued by Infrastructure Malta over the past two years shows that the government’s roads building agency, at the time the responsibility of Minister Ian Borg, issued at least five different direct orders and variations to Bonnici Brothers, over and above the value of the tender.

These direct orders have completely skewed the original tendering process, which according to procurement rules, is won by the lowest bidder.

The tender for the reconstruction of Triq l-Għeriexem was awarded to Bonnici Brothers in 2018, which submitted the lowest bid at €3.9 million. The cost included all the necessary works in the tender until the job’s completion.

Almost all the other bidders, except one, submitted bids under €6 million.

Things changed a few months after the tender was awarded.

Through several direct orders, over and above the original costs of the tender, Infrastructure Malta issued new payments to the same company for various additional works.

These included payments in tranches of €323,000, €804,000, €334,000, €82,000 and €750,000, boosting the final cost for the project paid by taxpayers to €6.2 million.

Infrastructure Malta did not detail the reasons for these additional costs.

In one of the most significant direct orders, the government agency only said this was “for miscellaneous items necessary to conclude this project”.

It has become a trend in recent years for direct orders to top the original value of tenders. This disadvantages competing bidders who submit a realistic price for the service.

In the Rabat road case,  the final cost for the works was more than what some other bidders had submitted, even though they were kicked out of the process.

“This has happened in all major roadworks carried out by Infrastructure Malta and before by Transport Malta, where tens of millions over the allocated budgets were spent through direct orders and variations,” sources close to the agency told The Shift.

Business industry leaders have also confirmed they have received complaints about the lack of a level playing field in procurement processes.

Last week The Shift reported that during the first six months of the year, Infrastructure Malta dished out a record number of direct orders, costing €21 million.