Consortium contests choice of bidder for yacht yard

The second consortium that submitted a bid for the privatisation of the Manoel Island Yacht Yard facility is contesting the Privatisation Unit's decision to start negotiations with the rival bidder, The Times has learnt.

Last week, the government announced that the consortium, which included Midi plc, was chosen as the preferred bidder for the yacht yard facility and that detailed discussions would start on the bid.

The unsuccessful bidder, AB Consortium, is, however, making "representations" with the unit on its decision.

"I do not want to comment on the matter but I can confirm we are making representations with the Privatisation Unit," Martin Galea, a director of AB Consortium, said when contacted. He declined to give further details.

AB Consortium is made up of Asimut Benetti, Joinwell, Esprit Yachting, JF Security and the Arrigo Group of Hotels.

It is understood that by the end of the week the consortium will be submitting a second reply to the unit's initial response to its submissions.

It is unclear what the nature of the objection is but industry observers pointed out it could possibly be related to the value of the financial offer.

The government had announced the names of two preferred bidders for the sale of two separate entities that belonged to the shipyards. The consortium led by Midi plc was chosen for the yacht yard while the VGT Group was selected for the sale of the land area formerly occupied by Marsa Shipbuilding. VGT, made up of Tumas Group and Singaporean interests, already handles cargo operations in Grand Harbour and confirmed it intended to use the site as a container storage facility.

No progress has yet been reported on the sale of Malta Shipyards' two other business entities, the super yacht facility and the ship repair facility. Bids for these two units fell below the government's expectations and it was reported that the government had requested new submissions.