MDA urges Government to award infrastructure project bids based on track record, not price

The Malta Developer’s Association (MDA) has called upon the Government to increasingly award bids for infrastructure projects based on a contractor’s delivery track record, in light of improved Government revenues.

Between January and May 2023 the Government’s revenues improved by €325.4 million year-on-year, mostly due driven by higher income tax yields.

“Government now should make sure that this increase in revenue does not go to current expenditure but rather to capital and long-term investments,” read the MDA’s statement.

“Sustainability dictates that the infrastructure of the country is of an adequate level. This includes roads, pavements, cleanliness, IT connectivity, clean transport, maritime infrastructure, accessible open areas, and air quality related projects amongst others.”

It added that it is the Government’s responsibility to couple increased revenue with an increase in its capital expenditure to deliver sustainable economic growth.

The MDA also implored the Government to return to a system where infrastructure projects are completed in short periods of time, highlighting that they are taking too much time nowadays.

“As such, Government needs to award bids not solely on price but increasingly on contractor delivery track record,” concluded the MDA.