Government releases details on treatment plants contracts

The Ministry for Investment, Industry and Information Technology has instructed the Water Services Corporation to publish details regarding claims made by contractors engaged to develop the Malta (North) and the Gozo sewage treatment plants.

The ministry said the tender for the works on the Malta (North) sewage treatment plant was awarded to a joint venture composed of IBI Idrobioimpianti SpA and Polidano Group and the situation regarding variations claimed is as follows:

• Claimed by the contractor: €4.02 million.

• Claims determined by the WSC: €3.73 million = 94 per cent of claims.

• Accepted by the WSC: €0.42 million = 11 per cent of claims.

• Rejected by the WSC: €3.31 million = 82 per cent of claims.

Almost all accepted claims relate to additional expenses caused by changes in the location of the plant ordered by Mepa at a late stage and after the tendering process, the ministry said.

The tender for works on the Gozo plant was awarded to Degremont SpA and C & F Building Contractors Ltd and the situation regarding variations claimed is as follows:

• Claimed by the contractor: €3.29 million.

• Claims determined by the WSC: €1.57 million = 48 per cent of claims.

• Accepted by the WSC: €0.32 million = 10 per cent of claims.

• Rejected by the WSC: €1.25 million = 38 per cent of claims

All accepted claims relate to variations in the plant's design instructed by the WSC after the conclusion of the procurement process.

Considering that the total contract value for both plants is €15.5 million, the fact that WSC accepted only a total of €0.74 million (Lm317,000) in variations, equivalent to 4.77 per cent of the contract value, is ample evidence of the seriousness that the corporation has adopted to oversee the process, the ministry said.

"It should be pointed out that the percentage variation is more than acceptable according to international standards and falls well within the normal contingency that one provides for these contracts," it said.