Ras Ħanżir project: multi-million-euro direct orders bonanza

The government’s roads agency, Infrastructure Malta, which earlier this year cancelled an ongoing €55 million tender to construct a new deep-water quay facility at the Grand Harbour, has issued a raft of direct orders, reaching more than €11 million, outside the normal tender process.

The direct orders are being approved by CEO Steve Ellul and his Minister, Chris Bonett, to companies associated with them, including Bezzina Maritime Service Ltd, owned by the President of Paola’s Hibernians FC, where the transport minister is Honorary President.

The project, known as Ras Ħanżir, includes two main projects: a new cargo facility and the restoration of an 18th-century gunpowder magazine. The cargo facility project involves constructing a 360-metre quay for handling goods and includes land reclamation and seabed consolidation. The gunpowder magazine, a Knights-era military building, is slated for restoration. 

It was launched in 2021 with a scheduled completion date of 2023.

When asked why the new tender—promised by the transport minister earlier this year—had not yet been published, and why direct orders worth millions were being issued in the meantime, Infrastructure Malta CEO Steve Ellul gave no response.

He did not answer questions on how these suppliers were being selected, whether public procurement rules are being followed, or the nature of the ongoing work when a tender has yet to be published.

As the year began, the EU-funded project was far from finished, and according to Minister Chris Bonett, the chosen contractor, Excel Sis Enerji, had only completed about 10% of the work. As a result, the government agency decided to cancel the tender and initiate a new bidding process.

Minister Bonett stated that this rare measure was implemented to ensure that no EU funds were lost due to delays. He promised that a new contractor would be selected through a new tender process to continue the project and meet the EU timeline for fund disbursement.

Although the promised new tender has yet to be released, the CEO of Infrastructure Malta has been issuing direct orders worth millions for parts of the project that should be handled by a new contractor. Information published in the Government Gazette from February to June reveals that Infrastructure Malta approved a total of eight direct orders, some of which have astonishingly high values.

The most significant order, valued at €5.6 million, was awarded for jet grouting works. Bezzina Maritime received nearly €3 million in direct orders to lease barges. Additionally, €2 million was allocated for the purchase of cement from Universal Cement Ltd. It is important to note that these supplies and services could be sourced from other companies.

The nearly €3 million in direct orders to Bezzina Maritime, owned by Ranier Bezzina, has raised significant questions in the industry due to his close ties with the transport minister. Bonett, who represents the Paola district in parliament, is a passionate supporter of Hibernians FC and serves as the Honorary President of the club, where Bezzina is the President.

The now-cancelled tender, valued at €55 million, was initially awarded to Excel Sis Enerji, which is controlled by Turkish shareholders and developer Joseph Portelli.

Earlier this year, The Shift requested a list of payments made to the company as part of the tender before its cancellation. The government agency refused to provide this information, citing ongoing legal disputes and the need to finalise the valuation of the works.