Public works on the Marsaxlokk promenade exceeded initial budget estimates by €2 million, with final costs totalling €6 million—well above the €4 million awarded through a public tender, according to the Government Gazette.
Three years after Prime Minister Robert Abela inaugurated the project, it was revealed that Schembri Barbros Limited was awarded the original contract for approximately €4 million. In the end, the contractor received €6 million.
The Grand Harbour Regeneration Project managed the project. Schembri Barbros was awarded the tender because it submitted the lowest bid, which was below the estimated costs for the project—technically known as being ‘below threshold.’
As the project progressed, however, the Grand Harbour Regeneration Corporation (GHRC) authorised additional work.
Government data shows the project cost €2 million more than projected.
When asked for clarification, GHRC CEO and former Labour MP Gino Cauchi defended the expenditure, attributing it to adjustments in the project’s scope.
“This information [published by the government] does not include the descoping amounts from the original contract,” Cauchi stated.
“When you factor in these adjustments, as well as the compensation scheme under LN 203/2022 and relevant DOC circulars, the actual variation from the original contract is less than 6%, primarily due to unforeseen additional works related to unforeseen circumstances,” he claimed.
When questioned about why the approval for the extra €2 million paid to the contractor was finalised more than two years after the promenade was inaugurated, Cauchi attributed it to procedure.
“Publication takes place when all aspects, including new works and variations on other items involved in the project such as quantities, are agreed upon by both parties. This is the norm. If there is no agreement, the matter can end up in arbitration or court cases, which prolongs the publication process,” Cauchi said.
Delays and budget overruns in public projects have become increasingly common in recent years, with taxpayers often left footing the bill for escalating costs long after projects are completed.
The lack of effective project management and adherence to public procurement rules has led to frequent delays in various projects, including schools, roads, embellishments, and hospital hubs.
The National Audit Office (NAO) has repeatedly questioned why the government continued to bypass regulations and miss targets despite employing a large number of professionals to execute these projects.
Could someone please clarify:
The legal notice quoted seems to refer to price changes due to war in Ukraine
So is it that 1.7 million plus (50% – 6% of 3.9m) variation was for products that increased in price during the war?
And the interpretation that it was published late because of arbitration is so sweet.
Mr Cauchi, generally it goes:
a) variation was requested by someone and contractor did the work.
b) contractor applied for payment and seemingly discrepancies from original tender were identified
c) arbitration or court cases happened finding in favour of contractor
In the meantime prior to, during and after works, the public should be informed about the variation on govt gazette.
And you are surprised? It’s the normal that budgets are exceeded. They had all the time to add and work out the commissions.
A labour trademark gross misappropriation of public funds unaccounted for.where did the funds go to ?
Inqassmu bejn hafna mafia, hemmhekk marru l miljuni zejda! Tghid ma hadhomx kollha l kuntrattur! Xi hmieg jaqq! Kif tridek taghmilhom 30 miljun u izjed minn hekk u tigri b xi maserati!!
6 miljuni ta dik l porkerija ta madum!!? U le le! X ma jsirux miljunarji l politici! Imma dal bahhu poplu ghadu ma fehem xejn! Kompli hallihom jisirquk u jitnejku bik f wiccek! Imma lil Daphne shitna ghax kixfet l hmieg!! X poplu tat-tqallih ghax dan kollu tort ta dal poplu!!
It’s 2 Million Euro excess over here, 7 million excess over there, double the estimated expenditure on this and on that…….. and the list goes on and on.
Nothing to worry about dear Ministers. Not even Clyde Caruana is spending sleepless nights because of the ever-mounting debit.
After all it is not their, or his, money, isn’t it.
Hallas Gahan – u tinsiex iccapcap……