Single bidder for Marsascala affordable housing tender as major developers snub scheme

The latest tender issued by the Foundation for Affordable Housing (FAH) for the development of apartment blocks on public land in Marsascala has attracted just one bidder, The Shift can reveal. This is an unusually weak response that insiders are describing as a clear snub by major developers.

Sources within the Foundation said the lack of interest is likely linked to growing concerns over an ongoing European Union probe into the scheme, which could expose participating developers to significant financial risk.

The investigation centres on potential breaches of EU state aid rules, with fears that any developer awarded a contract may ultimately be required to repay millions in unlawful aid.

The latest tender, covering a 400-square-metre plot of public land, was issued through the FAH’s own procurement system rather than the government’s standard Department of Contracts platform.  This system continues to reduce transparency and oversight on a project already mired in controversy.

The Shift asked FAH CEO Jake Azzopardi, a canvasser of former Housing Minister Roderick Galdes, to provide details on the bidders.

No reply was forthcoming.

Unlike previous tenders issued last year, when Azzopardi had published partial information on the list of applicants, the foundation has not disclosed any information about participants in this latest call.

The Shift is informed that only one small developer submitted a bid and is not expected to qualify for the project.

Despite the ongoing EU probe, the FAH is understood to be proceeding with the evaluation process, effectively shifting the burden of any potential state aid recovery onto the eventual winners.

Meanwhile, Andy Ellul, who recently assumed political responsibility for the scheme under the watchful guise of the Prime Minister, has refused to answer questions about whether the project should be suspended in light of the investigation. He was also asked whether the FAH had sought prior clearance from the State Aid Monitoring Board (SAMB), a mandatory step under EU rules. No answers were provided.

Responsibility for SAMB lies with Finance Ministry Permanent Secretary Paul Zahra, who has similarly declined to respond. Sources confirmed that Brussels have already sent a formal questionnaire to Zahra and his board as part of their assessment.

The controversy surrounding the scheme has been building for months.

At the heart of the issue is a government–Church initiative launched last year by Prime Minister Robert Abela and Archbishop Charles Scicluna. The project involves transferring public land at discounted prices to private developers, who will then sell housing units at below-market rates.

Under EU competition law, such measures must be notified and vetted in advance to ensure they do not distort the market.

Sources close to SAMB confirmed that no such notification was made before the scheme was launched.

The scheme has also drawn criticism over the profile of participating developers. Companies reportedly linked to politically exposed figures, including those with ties to former minister Roderick Galdes, have been among applicants in earlier tenders.