The government has had to hang its head in shame and admit there were no bids for the logistics hub, just days after Economy Minister Chris Cardona insisted there were.
The whole process was nothing short of ridiculous. There were no bids for the original request for proposals issued in October and, yet, for some bizarre reason, the government stubbornly ignored feedback from operators on why it would not work as it was being proposed and re-issued the exact same tender.
It is not clear what made the government think the outcome would be any different if the problems had not been tackled to make the concession more attractive to investors. And then there was the actual procedure itself. The Privatisation Unit – whether inwardly seething or not – flatly refused to say how many bids were received when the RFP closed in early April, saying the questions should be channelled to the ministry and to Malta Enterprise, on whose behalf the bid had been issued.
Questions to the ministry remained unanswered. Dr Cardona was approached at a function a few days after the RFP closed (often the media is left with no option but to doorstep Cabinet ministers to get questions answered) and insisted there were bids.
Subsequently, he was proved to have been either misinformed or unaware of the reality.
All the pretence of a professional RFP seeking to attract international investors unravelled, with the Privatisation Unit forced to show a stunning lack of independence, in stark contrast to the step-by-step transparency shown on its website during the bidding period. It is indeed a shame that so much precious time was wasted by merely coming out with the same unworkable model. Hopefully, the lesson has been learnt by all.
Investors love transparency and for good reason. If they are expected to dedicate resources to putting together a serious bid for a government tender, then they need to know there is some point to the whole exercise.
They need to believe that the government is truly interested in securing the best concession, for the national good, and, rather than just focusing on the highest bid, looking at the overall package, taking into account employment, value added and spillover effects on the rest of the economy, long-term sustainability and financial stability.
They need to believe there is a level playing field and that all the bidders will be treated equally. Most of all, they need to put their mind at rest there were no secret handshakes before the tender was issued. A lot, therefore, depends on the Privatisation Unit not kowtowing to the ministry and, instead, insisting on abiding by the highest standards of public procurement rules.
What will happen next? For years, the sectors involved with haulage, shipping, warehousing and logistics clamoured for a logistics hub. The first sign there was some power play going on in the background was when the Freeport Corporation head claimed it would fall under their remit. The second was when local operators heaped scorn on the business model. The third was when the call was re-issued without any attempt to improve it.
The election may change everything but if the plans persist the government must convince investors it is worth paying the bid bond.