Just under €6 million may have to be refunded to the EU if plans to grant a services concession for Gozo General Hospital go ahead, the Times of Malta has learnt.
Two recent projects at Gozo hospital benefited from EU funds. A total of €3,032,000 from the European Regional Development Fund were utilised in setting up the radiology unit and upgrading an operating theatre, completed last year. An upgrade of services and installation of new equipment, expected to be concluded by December, will benefit from a maximum of €2,919,000 from the same fund.
Under EU regulations, any money allocated to projects benefiting from the European Regional Development Fund, the European Social Fund and the Cohesion Fund has to be reimbursed if there is a “substantial modification” within five years from the completion of the project, the sources pointed out.
They said the parameters of the concession incorporating the redevelopment, maintenance, management and operation of the Gozo hospital being discussed with Vitals Global Healthcare Ltd could be interpreted as amounting to “substantial modification” of the hospital’s ownership and operations.
The three funds have to be reimbursed if there is a substantial modification within five years of completion
The EU regulations say “substantial modifications” include changes “affecting [the project’s] nature” or “implementation conditions” arising from “a change in the nature of ownership”.
Contacted about the possibility of Malta being asked to reimburse €6 million, a spokesman for the Ministry for Energy and Health replied that the public-private partnership process was still under way and the “contracts being discussed will protect Malta’s interests”.
Projects Malta Ltd, on behalf of the government, in March issued a public call for proposals for the award of a services concession for the redevelopment, maintenance, management and operation of the Gozo hospital.
Three submissions were received and, on June 27, 2015, Vitals Global Healthcare Ltd was selected as the preferred bidder.
Vitals Global Healthcare is a wholly owned subsidiary of Bluestone Investments Malta, which, in turn, is owned by Bluestone Special Situation 4 Limited, incorporated in the British Virgin Islands and managed by the Oxley Group.