Geological studies on Victoria Park still pending after €13 million contract awarded to Joseph Portelli

The government’s handling of the Victoria Park project in Gozo is raising eyebrows within the construction industry after a tender for geological and ground investigations was issued only after a €13 million construction contract had already been awarded.

The Victoria Park project, a flagship development planned in the heart of Gozo’s capital and financed through European Union funds, envisages the construction of an underground car park beneath a new public green space adjacent to Villa Rundle Gardens.

The first phase of the project was awarded to Next Construction Ltd, a company owned by prominent Gozitan developer Joseph Portelli and his long-time business partner Mark Agius, known as Ta’ Dirjanu.

Procurement records seen by The Shift show that, following the award of the contract, the Gozo Ministry issued a separate tender seeking geological and ground investigations within the footprint of the proposed development.

The sequence of events has prompted concern among industry insiders, who point out that geological investigations are typically among the first studies undertaken on projects involving major excavation works.

For developments that include underground structures, such as the planned Victoria Park car park, these investigations are essential to determine rock conditions, identify geological faults and underground cavities, assess groundwater risks, and provide engineers with the information required to design foundations, retaining structures and excavation methods.

Crucially, geological investigations are among the key factors that influence a project’s overall cost and procurement process. Contractors rely on geotechnical reports when pricing excavation works, estimating the volume and type of rock to be removed, assessing the need for specialised equipment, determining whether retaining structures or additional reinforcement will be required, and evaluating risks that could lead to delays or variations during construction.

In this case, the Gozo Ministry appears to have put the cart before the horse by awarding the works contract before completing the necessary ground investigations.

Industry insiders warned that if difficult ground conditions are discovered after a contract has been awarded, the consequences can be significant.

Unexpected cavities, unstable rock formations, groundwater infiltration, or the need for additional structural support can result in change orders, claims for additional payments, project delays and substantial cost overruns.

“It is for this reason that public authorities typically commission geological studies before issuing a works tender, ensuring that all bidders are pricing the same known conditions and that taxpayers are protected from unforeseen expenses,” one source said.

“The geological report is one of the fundamental documents upon which major excavation projects are designed and priced,” an engineer familiar with public infrastructure projects told The Shift.

“Issuing a ground investigation tender after a contract has already been awarded is highly unusual,” he added.

The Victoria Park project includes a planned underground parking facility capable of accommodating around 280 vehicles. Such a structure would require extensive excavation beneath a densely developed area of Victoria, making a thorough understanding of the site’s geological conditions all the more critical before construction proceeds.

The fact that the project is being financed through European Union funds adds another layer of significance to the issue.

EU-funded projects are generally expected to be supported by comprehensive technical studies and robust planning before major contracts are awarded, to ensure transparency, value for money, and compliance with public procurement rules.

Industry sources noted that the sequencing of the Victoria Park procurement process could attract attention from European authorities responsible for monitoring and auditing the use of EU funds. While no investigation is currently known to be underway, Brussels retains the power to review projects receiving EU financing if questions arise over procurement procedures, project management or the safeguarding of public funds.