In comments given to this newspaper soon after the government’s decision, Skanska had said that it was ready to sit at the negotiating table again, confident that an agreement could be reached.

In fact, yesterday morning fresh proposals were submitted by Skanska. The Swedish company reduced the price it had given on Thursday, but it is still not enough to satisfy the government.

The Prime Minister’s spokesman confirmed that the proposals had been submitted but, as yet, the government is still standing firm on the decision taken on Thursday.

Negotiations were broken off two months after the two sides had appointed negotiating teams to discuss the rising costs of the Mater Dei Hospital. Various meetings had been held “without prejudice to the legal position” of both sides, but although progress had been made, it had not been enough to reach an agreement.

The proposals submitted on Thursday were still far from being those tabled by the government, and discussions were broken off.