Issue link: https://maltatoday.uberflip.com/i/1544603
14 maltatoday | SUNDAY • 26 APRIL 2026 NEWS A new hospital, a €1.4 billion tender and a A new 300-bed public hospital at St Vincent de Paul will be built and operated for 27 years by the company winning the €1.4 bil- lion tender. In a model reminiscent of the Vitals/Steward deal that col- lapsed, the private company will recoup capital expenditure by billing government for ser- vices rendered over the length of the concession. The hospital, to be called Sir Temi Zammit, will offer in-pa- tient medical care for elderly people, who do not require treatment at an acute general hospital. Tender documenta- tion shows that the stated aim of the hospital will be to alle- viate pressure from Mater Dei Hospital. The hospital will consist of an admission area with 12 cubi- cles that will be managed and administered by the govern- ment, and 12 wards with a min- imum of 24 beds each operated and managed by the private company. The winning bidder will be expected to finish construction works and start operating the wards, 30 months from the is- sue of all permits. The compa- ny will manage and operate the hospital wards for 27 years and six months. Tender documentation shows that bidders will be expected to factor in any capital expendi- ture incurred during the first phase into the overall financial offer. "In view that government is not going to fork out the cap- ital expenditure for the whole project, it is envisaged that the cost will be recouped by the contractor through the opera- tional period of the hospital," the tender stipulates. It adds: "The successful bid- der shall start submitting re- quests for payment following the start of operations of all 12 wards." The tender also emphasises that the contracting authori- ty—St Vincent de Paul—and the government will not pro- vide "any payments, subsidies, or financial assistance" during phase one—the construction phase. According to the documen- tation, the "estimated pro- curement value, based on market research, is that of €1,381,381,344". However, bidders can submit offers below or higher than this estimate with the government reserving the right to choose any offer even if it is higher. A simple calculation based on the tender figures indicates that the government is expect- ing to fork out around €50.2 million every year for the du- ration of the concession. How- ever, the cost to government will be higher since the tender states that while the success- ful bidder will be responsible for providing nurses and care workers for the wards, the gov- ernment will be responsible for the provision of medical and allied health professionals. Bidder qualifications The tender document stipu- lates that bidders must provide a minimum credit facility of €15 million for the duration of the project, certified by a bank or financial institution. How- ever, in what appears to be a departure from the vitiated Vi- tals deal, the bank or financial institution must be recognised by the Malta Financial Services Authority. If the bid is being made by a consortium, the bank state- ment must cover all member companies. Bidders must also present au- dited accounts showing they had a minimum annual turn- over of at least €30 million in each and every of the last three financial years—2022, 2023 and 2024. In another departure from the Vitals deal, the tender stip- ulates that bidders must pro- duce evidence that they have "managed, operated and main- tained a care facility with a ca- pacity of at least 300 patients in a single facility and/or venue, for at least three years uninter- ruptedly prior to the publica- tion date of the tender". A site meeting at St Vincent KURT SANSONE ksansone@mediatoday.com.mt An artist's impression of the main reception area in the new hospital Artist's impression of the new hospital for old people that is to be built on the grounds of St Vincent de Paul in Luqa The winning bidder will be expected to finish construction works and start operating the wards, 30 months from the issue of all permits. The company will manage and operate the hospital wards for 27 years and six months