Chalet bid to be reopened as government breached tender evaluation rules

Ivan Camilleri - 06. April. 2025

The president of the Malta Developers Association, Michael Stivala, is back in the running for a 65-year concession to take over the Sliema Chalet after challenging the government’s decision to abort the process.

Following an appeal against the government’s decision, the Public Contracts Review Board (PCRB) determined that the evaluation committee overseeing the tender, led by criminologist Saviour Formosa, was wrong to decide Stivala’s bid was non-compliant.

The PCRB found that the evaluation team selected by the Office of the Prime Minister did not adhere to the terms of the tender when reaching their conclusion.

The evaluation team decided the bid was “not technically compliant.” Yet the PCRB concluded that the committee improperly evaluated the submission, requested documents beyond the scope of the tender, and failed to award appropriate marks to the bidder.

As a result, the PCRB ordered the government to rescind its decision to discontinue the concession and to appoint a new evaluation team, different from the previous one, to reassess Stivala’s bid for the concession.

Built in 1926, the Chalet was once a popular dance hall. It closed its doors in 1963 and has since fallen into disrepair. Over the past 60 years, various administrations have attempted to redevelop the site, but none have yielded concrete results.

The Chalet was a popular dance hall that closed in 1963 and was later removed, leaving only a strip of land where it once stood.

In 2022, the government issued a Request for Proposals to transfer the site to the private sector for 65 years. The RfP stipulated an initial investment of €3.2 million and an additional €3.2 million after the first 28 years of the concession.

Additionally, the concessionaire must pay approximately €6 million in ground rent over the concession’s duration.

The call for interested parties attracted minimal attention. The Stivala Group was the sole bidder, offering €8.4 million. The government requested a minimum concession fee of €8 million.

The group plans to develop a new catering and entertainment establishment.