Minister ‘aware of negotiations’ for direct order on floating dock

Companies complain they were denied opportunity to bid for floating dock • Same contract was previously awarded by tender

Transport Malta executive chairman James Piscopo
Transport Malta executive chairman James Piscopo
Coal Wharf
Coal Wharf

Transport Malta’s decision to award a service concession for a floating dock in the Grand Harbour without issuing a call for tender or an expression of interest has irked a number of companies which would have submitted a bid had the authority issued a public call.

This week, the controversial decision was the subject of a judicial protest filed by a private company against Transport Malta executive chairman James Piscopo.

The company, Woman In Management Ltd, filed a judicial protest against Transport Malta chairman James Piscopo and demanded that the concession awarded to Melita Shipyard Ltd is repealed since it is in breach of competition laws as determined by the European Court of Justice.

MaltaToday is also informed that another firm filed an official complaint with transport minister Joe Mizzi, however questions sent to the ministry to confirm this remained unanswered before going to print.

However, the ministry said that Mizzi was “continuously aware and informed during the ongoing negotiations between Transport Malta and Melita Shipyard Ltd.”

Moreover, the ministry said that Piscopo and chief operating officer Joe Degabriele represented Transport Malta during negotiations.

The ministry spokesperson added: “such agreements do not need to be sanctioned by parliament”.

MaltaToday is informed that Woman In Management Ltd, directed by Alexia King and Tracy Vella, was interested in teaming up with a foreign company had Transport Malta issued a call for tender.

In its judicial protest, the company explained that it only got to know about the concession after MaltaToday revealed details of the direct order on 13 April.

The company’s lawyers said that the company could have possibly shown interest in the regulator’s contract, but that this was not published and therefore prevented them from competing for it.

Contacted by this newspaper, the company’s shareholders – RBG Fiduciary Services Limited – said they would prefer not to comment at this stage as they might proceed with a court case as well as infringement at EU level.

Same contract awarded by tender

Transport minister Joe Mizzi has stood by TM chairman James Piscopo, who had confirmed with MaltaToday last Sunday that Melita Shipyard was directly awarded the permit “because this was an immediate, realisable opportunity that ought not to be missed.”

In reply to whether Mizzi backed the decision, the ministry said “This agreement is similar to other agreements which were done in the past for the use of port areas.”

But most contracts issued by the authority are awarded through a public call for tender or an expression of interest, including a concession for a floating dock on the same site where Melita will operate their floating dock.

Three years ago, Transport Malta had issued a tender for a concession agreement for a floating dock at the Outer Coal Wharf in Kordin, where entrepreneur Pierre Balzan’s Melita Shipyard Ltd will now operate.

In 2011, the contract was awarded to Palm Shipping, however the floating dock was later operated by Cassar Ship Repairs since the venture was not successful.

Most Transport Malta contracts, including permits for yacht marinas in Ta Xbiex and Gozo and the ferry service connecting Sliema, Valletta and the Three Cities were all awarded after a tender was issued.

The operation is expected to generate a turnover in the region of €10 million annually, Piscopo said, adding that this would also have a spill-over effect for subcontractors and related services.

Talking to MaltaToday, the executive chairman had insisted that the 12-month agreement was similar to other agreements for use of other port areas, and renewable subject to the success of the operation and at the authority’s discretion.

However, although TM awarded a 12-month contract, the operator is bound by a series of long-term conditions, including the engagement of four apprentices for three consecutive years.

Piscopo also said the operator will invest €4 million in infrastructure, equipment and upgrading of the area, and must employ 10 additional employees to the current direct compliment in the first year.

The superyacht facility in Kordin, was awarded to entrepreneur Pierre Balzan, who only last month registered a new company, Melita Shipyard Ltd.

However, Piscopo would only confirm that TM had entered into an agreement with a third party operator for the use of Outer Coal Wharf for the berthing and operation of a floating dock and for the provision of repair services on superyachts and marine vessels.

“The initiative is directed towards addressing lack of capacity issues, increasing competition and is thought to be an important step towards the further development of this lucrative industry,” Piscopo said.