Court upholds Gzira berth holders injunction against Yacht Marina concession contract

A court has provisionally upheld a warrant of prohibitory injunction filed by sixteen berth holders stopping Transport Malta’s plans to evict them and sign a concession contract over the Gzira Gardens Yacht Marina.

Berth Holders Ltd, a company forming part of the Island Group JV Consortium, and 16 individuals filed the injunction, preventing Transport Malta from signing the deed with the winning bidder for the concession after they were informed that the concession contract would be filed “imminently” and that they must remove their boats from the marina. They are claiming irregularities in the tendering process.

The 25-year concession would cover rehabilitation, operation and management of the marina, over an area of 25,000 square metres, including a harbour master's office in the garden and berths along the quay.

The company had formed a consortium with third parties called Island Group JV which had submitted a proposal for the concession for the rehabilitation, operation, management and transfer back of Gzira Gardens Yacht Marina.

However, this had been disqualified after it transpired that the consortium proposed additional commercialisation of areas in addition to the area provided for in the request for proposals.

The concession relates to a two-year period during which the operator would upgrade the area and install pontoons, after which fees can be raised according to a schedule set at the operator’s discretion.

At the time, Transport Malta had said that the winning bidder would have to accommodate the 54 boats berthed there.

The unsuccessful bidders had first submitted two requests for information under the Freedom of Information Act, after suspecting irregularities in the tender-awarding process.

Under the RFI they requested a copy of the concession contract, if this had already been signed, and if not, an explanation for why this had been delayed, from Transport Malta and the Contracts Department.

The boat owners had also asked for information about the technical specifications of the winning tender but had been referred to the Contracts Department for information, which never arrived.

But when recently they saw that another two pontoons had been added to the project, they became aware that the parameters of the tender had changed. They argued that had they been made aware of this beforehand, they would have been in a position to make a more fitting offer than the one they submitted.

The boat owners said they had also been informed by Transport Malta to remove their boats as the privatisation tender was due to be signed imminently. They, however, insisted that Transport Malta had no right to force their eviction since their berthing rights at the Ta’ Xbiex Yacht Marina were the subject of pending court proceedings in which they are claiming that there is a valid contractual relationship with the authority.

They therefore called on the court to stop TM from signing the contract and from removing their boats berthed at the Gzira marina. Mr Justice Noel Cuschieri provisionally upheld their application.

Lawyers Joseph Gatt, David Camilleri and Lorna Mifsud Cachia are representing the boat owners.