Gozo elderly care tender cancelled after site collapse

A multi-million-euro tender issued by Malta’s Health Ministry for the lease of an elderly care facility in Gozo has been abruptly cancelled, only three days after part of the excavation site connected to the project collapsed. The development has raised renewed questions about the decision-making process behind the tender, the parties involved, and the overall management of public resources within the health sector.

The government has yet to publicly explain the reasons behind the cancellation, which has generated unease among local industry observers and residents. Concerns about the tender had already surfaced well before the collapse, particularly regarding its necessity, timing, and the apparent alignment between the project’s specifications and a single private developer’s proposal.

Background of the tender

The call, issued by the Health Ministry, sought bids for the “leasing of accommodation premises for older persons in Gozo for the Gozo General Hospital.” Officially listed as tender CT4009/2025, it was announced under the oversight of Health Minister Jo Etienne Abela.

According to the tender documentation, the facility was intended to accommodate between 120 and 160 elderly residents who currently live at Dar Sant’Anna, an existing elderly care home situated within the Gozo General Hospital precincts. The objective, according to the Ministry, was to expand and modernize elderly care services in Gozo by relocating residents to a new, privately leased complex.

However, from the outset, questions were raised regarding the necessity of leasing a new private facility rather than investing in the existing public infrastructure. Local sources in Gozo also noted that several existing elderly care homes have been operating below capacity, suggesting that the island’s current needs were already being met through existing agreements.

The sole bidder: Island Residence Holdings Ltd

Industry insiders were quick to identify possible conflicts of interest or preferential conditions surrounding the tender. Records show that only one company, Island Residence Holdings Ltd, owned by businessman Bertrand Gatt, submitted a bid.

Gatt, a resident of Sliema, Malta, received a development permit in 2023 to construct a 60-bed elderly home on a vacant plot in Victoria, Gozo. Notably, the project was launched around the same period that discussions for the government tender began. Excavation work on the site commenced only weeks before the Ministry issued its official call for offers.

By the close of the tendering process, Island Residence Holdings Ltd stood as the only bidder, proposing a €10.5 million offer for the leasing arrangement. The coincidence between the construction of Gatt’s private facility and the Ministry’s tender requirements led several observers to suspect that the tender may have been tailored to match the specifications of his project.

Expansion plans and regulatory status

In April 2025, Gatt filed a new application with the Planning Authority (PA04665/25) to increase the size of his facility by adding two additional floors. This modification would raise the capacity from 91 to more than 120 beds — closely aligning with the Health Ministry’s stated requirement in its tender documents.

The application remains under review and has not yet received official approval. Nevertheless, excavation and preliminary structural works on the site had already been progressing under the earlier 2023 permit.

It was during these excavation works that an incident occurred, bringing the entire project under public scrutiny.

The collapse of the excavation site

On 27 September 2025, portions of the excavation site in Victoria suddenly collapsed. The affected area included parts of the old structures that were scheduled for demolition. Fortunately, no injuries were reported, but the collapse caused substantial damage to the site and prompted immediate intervention by the relevant authorities.

As a precautionary measure, construction activities were suspended pending a formal investigation by technical experts and regulatory bodies. The incident added further doubts about the project’s planning and safety oversight.

Cancellation of the tender

Just three days after the incident — on 30 September 2025 — the Health Ministry announced that the tender had been officially cancelled. The Ministry provided no explanation in its public communication, leaving open questions about the reasons for this decision and whether it was linked directly to the collapse.

As of this writing, it remains unclear whether Island Residence Holdings Ltd or its owner, Bertrand Gatt, intends to appeal the decision. According to tender procedures, any appeal would have to be filed with the Public Contracts Review Board within a specific time frame.

Industry sources told The Shift that the cancellation has likely halted Gatt’s plans for the facility’s completion, at least temporarily.

Lack of clarity and public transparency

The absence of official clarification from the Health Ministry has fueled speculation about whether the tender was cancelled due to procedural irregularities, safety issues, or other undisclosed reasons.

Transparency advocates have called for a formal statement from the government, arguing that public tenders worth millions of euros should be subject to clear and open explanation — especially when the process involves only one bidder and concerns essential social services such as elderly care.

Observers have also pointed out that the timing of the excavation collapse and the tender’s cancellation could suggest an internal reassessment within the Ministry about the project’s viability and the reputational risks associated with proceeding under current conditions.

Questions over the necessity of a new elderly care facility

Data from Gozo’s health and social care sector suggest that the island’s current elderly care capacity is sufficient to meet existing needs. Many of the available beds in both private and Church-run homes are not fully occupied.

The government currently funds a number of elderly care facilities through public-private partnership (PPP) arrangements, ensuring that elderly citizens who require institutional care can access subsidized placements. These partnerships include Church-run homes and independent private providers operating under contracts with the Ministry.

Given this situation, many industry professionals have questioned the logic behind leasing an entirely new facility at such a high cost to the public purse. The tender’s projected €10.5 million expenditure, critics argue, could have been used more efficiently to upgrade existing facilities or expand community-based home care programs, which remain the preferred choice for many Gozitan families.

Elderly care dynamics in Gozo

Unlike Malta, where elderly care services are managed primarily by the national Health Ministry, Gozo operates under a somewhat divided administrative framework. In most cases, the Minister for Gozo is responsible for elderly care services on the island — except for those related directly to the Gozo General Hospital, which falls under the Health Minister’s jurisdiction.

This dual structure has often been criticized for causing bureaucratic delays and confusion in policymaking. Analysts argue that the lack of coordination between the two ministries can result in overlapping responsibilities and inefficient use of public funds.

In this case, it remains unclear which ministry initially initiated the plan to expand elderly care services and whether the Health Ministry consulted the Ministry for Gozo before issuing the tender.

Industry and political reactions

While official political responses have been limited, several Gozitan professionals in the healthcare and construction sectors have privately expressed relief that the tender was cancelled. According to one senior industry figure, “The market in Gozo does not need another large-scale care facility. The existing supply is more than enough, and adding more beds could lead to unsustainable oversupply.”

Others, however, have voiced concern that the tender’s cancellation could undermine investor confidence in government projects if not handled transparently.

Civil society organizations advocating for good governance have urged the Health Ministry to release a full statement outlining the reasons for the cancellation and the steps being taken to review the situation.

Broader implications for public procurement

This case highlights long-standing concerns about how public tenders are structured and awarded in Malta, particularly in sectors involving health and infrastructure. The pattern of single-bidder tenders, coupled with overlapping private developments that appear to pre-empt government contracts, continues to raise alarms among transparency advocates.

Experts emphasize that even the perception of preferential treatment can erode public confidence in the integrity of government procurement. For this reason, they argue, ministries must ensure full accountability and publish clear justifications when cancelling or modifying large contracts.

Conclusion

The abrupt cancellation of the Gozo elderly care tender, following the collapse of a related excavation site, underscores the need for greater transparency and due diligence in public procurement processes. While no formal wrongdoing has been alleged, the sequence of events raises legitimate questions about planning, oversight, and the alignment between public needs and private interests.

As Gozo’s elderly care sector continues to evolve, policymakers face a crucial challenge: ensuring that public funds are used efficiently and fairly while maintaining the highest standards of safety, accountability, and ethical governance.

Frequently asked questions

What was the purpose of the Gozo elderly care tender?
The tender aimed to lease a new facility to accommodate between 120 and 160 elderly residents from Dar Sant’Anna, part of the Gozo General Hospital complex.

Who issued the tender?
The Health Ministry, under Minister Jo Etienne Abela, issued the tender CT4009/2025.

Why was the tender cancelled?
The Ministry has not provided a reason for the cancellation. It occurred three days after a related excavation site collapsed in Victoria, Gozo.

Who was the sole bidder for the project?
Island Residence Holdings Ltd, owned by businessman Bertrand Gatt, was the only company to submit a bid.

Was the collapse linked to the tender cancellation?
The Ministry has not confirmed a direct link, but the timing has raised speculation that safety or compliance issues may have influenced the decision.

Is there sufficient elderly care capacity in Gozo?
Yes. Industry sources indicate that existing facilities in Gozo already meet current demand, with some operating below full capacity.

What happens to the excavation site now?
All works have been suspended pending a formal investigation by the authorities.

Can the company appeal the cancellation?
Yes. Under Maltese public procurement law, the bidder may appeal through the Public Contracts Review Board.

What concerns were raised about the tender?
Observers questioned why a new facility was needed and whether the tender process was aligned too closely with one private developer’s project.

What lessons does this case highlight?
It emphasizes the need for transparency, proper planning, and ethical management of public tenders to protect public funds and maintain trust.