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Karl Stagno-Navarra
Plans to abolish the ‘V’ car licences to Valletta and install a ‘pay-as-you-go’ system to access the historic capital city, have received a major setback this week with government admitting that “the system will not be running as of next 1 January 2007,” as had originally been formally announced.
Speaking to MaltaToday, transport and urban development Minister Jesmond Mugliett revealed that “due to difficulties,” the new target date for the introduction of a payment system for vehicle access to Valletta will now start on 1 March 2007.
However, what is going to happen in the meantime regarding the ‘V’ licences, that will officially be abolished as of next December 31, still remains shrouded in mystery.
Despite the legal challenge mounted by the consortium that lost the tender for the electronic pay-as-you-go system, government intends forging ahead with the project.
“We are going ahead with the project,” said Minister Jesmond Mugliett, who echoed the IT and investments ministry’s policy coordinator Manwel Delia.
As Jesmond Mugliett insisted that the park and ride system will be effective and free as from next month, the ‘V’ licence issue will confront government by December.
“Good question,” was the reply from Manwel Delia, when asked by MaltaToday what is to happen with the ‘V’ licences for next January and February.
According to government, the “difficulties” are a result of the delay in the awarding of a much contested ADT tender for the development, installation and operation of a vehicular system in Valletta.
The system chosen by ADT will operate very similarly to that currently in use in central London, where cameras will photograph car registration plates on entry and exit to Valletta, then charge the owner of the vehicle for the time spent there.
In a call for tenders issued last year by ADT, it transpired that the system would be contracted to an operator who in turn, would develop, install and operate the said system under licence by ADT.
The global annual estimated management charge payable to the chosen contractor was expected to reach approximately Lm500,000.
Out of 11 different tenderers, four consortia made it to the final stage, subsequently leaving just two preferred bidders, one of which was suddenly disqualified over an interpretation technicality.
In a judiciary protest filed last week against the Prime Minister, the Director of Contracts and the ADT, Anthony Galea and Joe Gasan on behalf of SG Solutions, claimed that their bid was unjustly disqualified.
They also alleged that government and ADT will have to spend an additional Lm2.7 million to run the adjudicated more expensive system.
SG solutions challenged their disqualification by the adjudicating board over the interpretation of quoting on a ‘lump sum’ – rather than an annual consideration – towards the eventual extension of the scheme to Floriana, even though Cabinet has already announced its decision not to include Floriana.
While calculations submitted by SG Solutions indicate that government and ADT will have to spend Lm2.7 million more to run the system over the next 10 years, Minister Jesmond Mugliett disagreed with this calculation.
SG Solutions, who are backed by German conglomerate Siemens AG, quoted an annual consideration of Lm471,528 as against the offer of Lm749,000 submitted by CVA Consortium who last week were awarded the letter of intent and in turn issued a call for various vacancies.
Over 10 years, the difference in payment to the operator would be Lm2.7 million more for ADT.
Apart from the money factor, the considerations transcribed in the Contracts Appeals Board’s decision to uphold the disqualification of SG Solutions, raise many questions.
“Certain points, such as the possible long term cost saving to the contracting party if one were to select their offer, may, subject to any further verification, hold a certain element of truth…” said the appeals board, adding that: “the extent of viability of opting for one condition or other may be considered within a different forum but certainly not by this board at this stage”.
As Joe Gasan is readying his legal entourage to challenge government in court over this decision, ADT has issued the letter of intent to CVA Consortium.
ksnavarra@mediatoday.com.mt
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