Renzo Piano's designs for Valletta cost €6.6 million

Additional reporting by Nestor Laiviera.

Laparelli’s jaw would have surely dropped at the fees commanded by architect Renzo Piano, who will be paid €6.6 million for his architectural services on the City Gate project. But it’s always less than the customary 10% on the €80 million regeneration of Valletta’s entrance and the new parliament building.

A full list of tenders and direct orders issued by the Grand Harbour Regeneration Corporation shows the maestro has already been paid €2.6 million of his fees, just one of the direct orders issued by the corporation.

As a ‘schedule 3’ corporation, the GHRC can issue contracts without the vetting of the finance ministry or the contracts department, and instead seek permission from Austin Gatt’s infrastructure and transport ministry.

A spokesperson for the GHRC said the corporation is not exempt from “procurement rules but rather it vests in it the responsibilities that the Department of Contracts normally exercises in procurement processes of other public organisations.”

The spokesperson however clarified that in the case of the City Gate Project “all tenders are sent to the Department of Contracts for vetting,” adding that the directive came straight from the Finance Ministry given the considerable investment and public scrutiny.

The GHRC is presently tasked with the adjudication of tenders for City Gate and Parliament Projects in Valletta.

Other schedule 3 entities that can administer their own public procurements are the Ministry of Justice and Home Affairs, Local Councils, the Infrastructure Ministry, MGI, and Mimcol.

This allows all entities falling under these ministries and corporations to seek ministerial consent when choosing whether to adopt ‘restricted’ or ‘negotiated’ procurement procedures.

Even extra costs that exceed the standard 5% variation would require only the consent of the minister responsible.

A full list of tenders and direct orders issued by the Grand Harbour Regeneration Corporation shows the maestro has already been paid €2.6 million of his fees, just one of the direct orders issued by the corporation.

As a ‘schedule 3’ corporation, the GHRC can issue contracts without the vetting of the finance ministry or the contracts department, and instead seek permission from Austin Gatt’s infrastructure and transport ministry.

The rest of some €900,000 in direct orders have gone to Architecture Project for services on the Barrakka Lift and Dock No. 1 projects (€682,500), Architects Studio for services on the Banca Giuratale (€80,000), ADI Associates for the City Gate traffic assessments (€80,000), Design Solutions for services on the Menqa (€34,000) and Demicoli Associates (€30,000) for services on Fort St Elmo.

Another €750,000 of contracts – procured with a request for quotes – will be dispensed to international firms who have already worked with Renzo Piano, such as Harrison Group, Tu Wien GmbH, Muller-BBM and Franck Franjou.

Over €8.3 million in other services were procured by calls for tender: €2.9 million for Bovis Lend Lease project management and €2.8 million for Ove ARUP’s engineering services, while Polidano gets €760,000 for site enablement works and €373,000 to Agius-Camray-Vassallo joint venture for the Opera House ruins’ restoration.

'Schedule 3' motion

A spokesperson for the GHRC said the corporation is not exempt from “procurement rules but rather it vests in it the responsibilities that the Department of Contracts normally exercises in procurement processes of other public organisations.”

The spokesperson however clarified that in the case of the City Gate Project “all tenders are sent to the Department of Contracts for vetting,” adding that the directive came straight from the Finance Ministry given the considerable investment and public scrutiny.

The GHRC is presently tasked with the adjudication of tenders for City Gate and Parliament Projects in Valletta.

Other schedule 3 entities that can administer their own public procurements are the Ministry of Justice and Home Affairs, Local Councils, the Infrastructure Ministry, MGI, and Mimcol.

This allows all entities falling under these ministries and corporations to seek ministerial consent when choosing whether to adopt ‘restricted’ or ‘negotiated’ procurement procedures.

Even extra costs that exceed the standard 5% variation would require only the consent of the minister responsible.

A parliamentary motion presented in May by the Opposition has been in limbo, after calling into question “serious mistakes” in a legal notice which waives the need for certain public contracts to be vetted by the Contracts Department.

The motion draws attention to how Enemalta and the Water Services Corporation are classified as Schedule 5 authorities that make them “free to publish offers without requiring that they be examined by the Contracts Department.”

Similarly, the Grand Harbour Regeneration Corporation (GHRC), the entity tasked with the re-development of the harbour and docks area, can award multi-million euro tenders that are exempt from the checks and balances governing public contracts.

Classified as a “schedule 3 contracting authority”, the GHRC does not require approval of its direct orders from the Finance Ministry or the Contracts Department, but from Austin Gatt’s Ministry of Infrastructure and Transport.

This, the motion points out, “goes against every recommendation put forward by the Auditor General in his report dealing with the Delimara power station extension.”

Labour MPs say the government had approached the Opposition to hold talks before discussing the motion, but any meetings were postponed pending “necessary documentation” to be presented by Finance Minister Tonio Fenech.

Since then, the documentation never materialised, and the talks have been postponed indefinitely.

The first talks were held between Fenech, and Labour MPs Anglu Farrugia, public accounts committee chairman Charles Mangion, Joe Mizzi and Evarist Bartolo.