Prime Minister Lawrence Gonzi said agreement had not yet been reached, but a meeting was scheduled for 10 days time. “We have not yet reached agreement, but if they come back in 10 days time and make an offer that I think is acceptable, I do not see any reason for any more delay,” said Dr Gonzi after a meeting with Skanska CEO Stuart Graham at Castille yesterday.

“The ball is in their court now,” said Dr Gonzi. “The technical aspects are being dealt with by people on both sides (the government and Skanska),” he said.

Dr Gonzi said the ideal scenario was for the hospital to be opened on the established date, but said he was not willing to pay a huge sum of money for this to happen. Dr Gonzi has, in fact, always maintained that he will only accept an offer that justifies the costs incurred for the construction of the hospital.

When asked whether any members of Skanska would be staying in Malta, the Prime Minister said that, as far as he knew, the president would be leaving but others would stay on to do any necessary work. Dr Gonzi said that although the distance between both parties had narrowed, particularly in regard to the fee for the project, it still was not an offer he would accept. Asked whether he was disappointed at the outcome of yesterday’s meeting, Dr Gonzi answered simply: “Very”. Asked to clarify the government’s position should an agreement not be reached in the next meeting, Dr Gonzi said he reserved the right to take legal action. However, he said, there was still a slim chance of reaching an agreement.

Prior to yesterday’s meeting, the government was waiting for Skanska to present fresh and improved proposals that could justify the projected final costs together with the necessary explanations for such variations.

Dr Gonzi has reiterated time and time again that he “will not have the wool pulled over his eyes,” and will only give the green light to Skanska if it comes up with a better offer that not only justifies the costs incurred, but would also be value for money.

The issue gave rise to controversy when Dr Gonzi accused Labour leader Alfred Sant of undermining government’s position by making uncalled for comments in a parliamentary adjournment a few weeks back.

Dr Gonzi said Dr Sant’s speech had strengthened Skanska’s position and undermined the government’s position, at a time, when both parties were very close to reaching an agreement.

Skanska then tabled an offer which Dr Gonzi branded “Absolutely unacceptable”. Dr Gonzi said he dismissed the offer without even looking further into the matter as it was not what he thought was fair.

Skanska officials tabled another offer very soon after Dr Gonzi’s rebuttal, which the PM said was “better, but still lacking”. Dr Gonzi is once again expecting Skanska to come up with a better offer in ten days time. He was joined for the meeting by Health Minister Louis Galea and Parliamentary Secretary Tonio Fenech.