Marsaxlokk promenade revamp exceeds budget by €2 million

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.

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.