Incinerator bidder appeals Wasteserv decision to award contract to French-Maltese consortium

Hitachi-Zosen Inova AG - Terna S.A., one of the bidders for Wasterserv’s waste-to-energy facility, has appealed the agency’s decision to award the tender to a French-Maltese consortium.

“WasteServ can confirm that the standstill period has been broken by Hitachi-Zosen Inova AG - Terna S.A., who has filed an appeal,” the agency said on Monday.

Bonnici Brothers and French recycling firm Paprec were selected as the preferred bidder on 13 October for Wasteserv’s incinerator project in Magħtab. The project is one of the largest ever public infrastructure contracts to be awarded and the winning consortium was selected after submitting the lowest bid at €600 million.

Wasteserv said that like the recommended bidder, Hitachi-Zosen Inova AG-Terna S.A. submitted a compliant bid. Hitachi's bid came with a price tag of €781,512,463, while Paprec-BBL submitted a bid of €599,659,900.

The appeal process will now be managed by the Public Contracts Review Board.

MaltaToday revealed on Sunday that the Maltese partner in the consortium awarded the multi-million euro Magħtab incinerator tender has ties with 2013 oil scandal kingpin George Farrugia.

Bonnici Brothers Ltd, a Maltese construction firm, is the sole shareholder in an energy company run by Farrugia. The connection has raised eyebrows in industry circles.

The energy company called ENV Energy Solutions was set up in June 2018 and counts as its only shareholder, Bonnici Brothers. According to the description on its website, ENV is engaged in petroleum infrastructure construction, maintenance and services, product distribution and new energy. Farrugia is the company’s CEO.

It is unclear what role Farrugia may have played in the winning consortium’s bid for the Magħtab incinerator tender however, in comments to MaltaToday, Bonnici Brothers CEO Gilbert Bonnici denied Farrugia was involved in any way in the project.

Bonnici also said Farrugia will have no future role to play in the incinerator project if the tender award is confirmed.