Three consortia involving major players in Malta's healthcare and catering sectors have submitted bids ranging from €1.74 billion to €1.87 billion for the construction and operation of a new 300-bed geriatric hospital in Luqa, with all three offers exceeding the government's estimated tender value of €1.4 billion.
The deadline for submissions closed on Tuesday, with CareLink Medical Group submitting the lowest bid at €1.74 billion, followed by Custodia Care JV at €1.79 billion and Proxima JV at €1.87 billion.
CareLink Medical Group comprises Saint James Operations Ltd, which operates St James Hospital, as its lead partner, together with CPHCL Co. Ltd, a company within the Corinthia Group.
Custodia Care JV consists of CareMalta Ltd as its lead partner and Carerise Ltd as a partner, both of which are linked to the Vassallo Group.
Proxima JV, meanwhile, is made up of Malta Healthcare Caterers Ltd as its lead partner and James Caterers Ltd, both forming part of the James Caterers Group.
The tender for the new hospital, which will be named Sir Temi Zammit, was issued in April this year, although the government subsequently extended the submission deadline from July to October following a substantial number of requests for clarification received by the health authorities.
The 300-bed public hospital is planned to be built within the grounds of St Vincent de Paul residence for the elderly in Luqa, with the project intended to ease pressure on Mater Dei Hospital by providing medical care to elderly patients who no longer require treatment in an acute general hospital but whose needs cannot be adequately met in a residential care home.
Under the terms of the tender, the successful bidder will be responsible for constructing the facility and operating it under a concession lasting 27 years and six months, recovering the capital investment through payments made by the government for services provided throughout the concession period.
The facility will include an admissions area consisting of 12 cubicles, which will remain under government management and administration, alongside 12 wards containing a minimum of 24 beds each, which will be operated and managed by the private concessionaire.
The successful consortium will be required to complete construction and begin operating the hospital wards within 30 months of obtaining all the necessary permits.
Tender documentation also specifies that bidders must incorporate capital expenditure incurred during the initial phase of the project into their overall financial offers.