Alterra Consortium said yesterday they were notified that their bid for 40 per cent shareholding in Malta International Airport had been unsuccessful only five minutes before the finance minister`s news conference announcing the deal.
"On Thursday, we discovered through the newspapers that the Ministry of Finance was on the brink of concluding negotiations with the Malta Mediterranean Link Consortium. Our attempts to seek further information from the ministry and the Privatisation Unit met with a brick wall."
Tony Gollin, senior vice-president of Alterra Partners, and Frode Skulbru, vice-president, said they still did not know the basis or reasons for the decision.
"We were selected as preferred bidder last December, based on the fact that we submitted the highest offer price and the best overall business plan for the development and growth of Malta`s airport, besides offering the most experience and expertise as a strategic partner.
"At no point were we informed that this preferred bidder status had changed."
The Alterra Consortium is made up of Alterra Partners (UK), Grupo Dragados (Spain), Bechtel Enterprises (USA), Singapore Changi Airport (Singapore), Manchester Airport (UK) and Mizzi Europe Investments (Malta).
It comprises more than 25 airports the world over, including Singapore Changi Airport, which is widely considered to be one of the best-run airports in the world, and other important hubs in Europe, Asia and the Americas.
Alterra said at a press briefing yesterday: "After we were selected as the preferred bidder in December, we continued to negotiate with the government throughout January and February to fine-tune documents and resolve the remaining commercial issues. It is usual in negotiations like this to have issues that require further discussion, and preferred bidder status is there to create the reciprocal confidence and trust which would allow such discussion to take place.
"Several issues did arise, all of which were discussed and resolved. The Alterra Consortium negotiated in good faith, and in many cases even compromised its own position to satisfy the government.
"At no time were we informed by the government that any position we had taken was so unacceptable that the government felt it necessary to approach a third party. Indeed, dialogue between Alterra and the government was still on-going when the government took the highly unusual step of approaching other bidders - without, at any time, informing us."
Alterra claimed that confidential information relevant to its competitive offer had been disclosed as a result of the Malta Mediterranean Link Consortium being invited to take part in the process.
"At no point were we informed that our preferred bidder status had changed. Nor were we told why the Malta Mediterranean Link Consortium had been included in the process without apparently bettering our offer."
Alterra said it had incurred substantial costs as a result of these actions.
"We have filed a judicial protest against the government, and will take further steps. We will make additional comments as appropriate."
In its judicial protest, Alterra said it had been declared a preferred bidder for the privatisation of Malta International Airport.
The consortium said a call for offers with respect to the privatisation of MIA had been issued and, subsequently, it had been chosen by the relevant authorities as the preferred bidder. The government had then opened negotiations with the consortium.
The consortium said it was not informed that the government had, in the course of the negotiations, illegally invited other bidders - who had not been chosen as preferred bidders - to enter into talks on the same issue.
The consortium said the government had communicated to the latter bidders information on various sensitive conditions including details of the consortium`s financial offer. This had taken place in an illegal manner and in violation of the obligation of confidentiality and was of obvious prejudice to the consortium.
It said it had learned from the newspapers on Thursday that the government intended to conclude negotiations and a contract with a bidder other than itself. This, the consortium said, obviously meant it would sustain damages and was in violation of the conditions regulating the bidding process. The consortium added that the whole process leading to the granting of the contract would therefore be null and void.
The consortium concluded by calling on the government not to sign the contract for the privatisation of MIA with any bidder other than itself. It said any such contract would be null and void and it would sue for damages if the contract were awarded to another bidder.
The consortium explained that the aim of the judicial protest was to serve the government with formal notice of its intention to take legal action.
Prof. Ian Refalo signed the protest.