Clash over Pixkerija government concession

Another battle has erupted over the latest government concession of public property as two major developers face each other to acquire the Old Fish Market building, known as il-Pixkerija, together with adjacent properties and a large section of the seashore in Valletta.

Bonnici Brothers filed an objection to last week’s announcement that the 65-year concession will go to Carmelo Stivala Group, owned by the family of Michael Stivala, the president of the Malta Development Association (MDA).

The bid by Stivala Group was more than twice what Bonnici Brothers offered.

Accusing the OPM-led Malta Strategic Partnership Projects Ltd of a lack of transparency, Bonnici Brothers asked the Public Contracts Review Board (PCRB) to investigate the evaluation process and annul its award to the MDA boss. The Stivalas employ disgraced former prime minister Joseph Muscat as their consultant.

Bonnici’s main bone of contention concerns the OPM’s alleged lack of transparency, particularly in denying them non-confidential information about the winning bid, including an assurance that the Stivalas met the eligibility criteria.

Managing Director Gilbert Bonnici submitted the request. Just a few years ago, Bonnici and Prime Minister Robert Abela were in business together.

Issued in March 2023, the Request for Proposals (RfP) invited interested bidders to be awarded a 65-year concession to transform the old fish market building on the water’s edge of the Grand Harbour into another “luxury hotel”.

The concession will also give away additional historical buildings, including the current energy ministry, three Grand Master Pinto stores, the former Quarantine Hospital – a Grade 1 building – and an area of the seashore more than the size of two football grounds to be developed into a yacht marina and berthing facilities.

The request for proposals, which closed in August 2023, attracted only two bidders.

The Carmelo Stivala Group submitted the best financial offer, €38.5 million, and Bonnici Brothers, €15.7 million, or €242,435 a year.

According to the Contracts Department, while the Stivalas presented a global sum in their bid, as requested in the RfP, Bonnici only listed the annual concession fee.

According to the RfP, in addition to a minimum of €208,250 in annual concession fees, the winning bidder will also have to pay the Lands Authority €357,000 a year in ground rent and another €50,000 annual fees to Transport Malta for the seashore concession.

This is the second “luxury hotel” that the government is proposing in its bid to privatise historic buildings in Valletta.

Less than a kilometre away, the Evans Building is also up for grabs to become a hotel. Again, the project is stuck as no final decision has been made.

The government proposed that the Evans Building be given to the Eden Leisure Group, led by the Decesare family. However, GAP’s Paul Attard, who submitted the highest financial offer, and Iconic Hotel Malta – a consortium that includes world-renowned Nobu –  filed an objection last February claiming irregularities.

This objection has yet to be heard as the PCRB, the official government-appointed appeals board responsible for hearing objections, has not met since June.