GSD questions Govt’s change to procurement rules 

The GSD has called on the Government to explain whether it intends to award a concession without tender following changes to procurement rules, and to identify who would benefit. 

The Opposition questioned the purpose of a Government amendment to procurement rules to allow concession contracts to be negotiated in specified circumstances without prior publication of a concession notice, while introducing additional factors for assessing the duration of major infrastructure concessions. 

The regulations, which took effect on October 15, allow negotiations with one or more selected operators where an earlier process attracted no applications or suitable bids, provided the initial contract conditions are not substantially altered. 

Other grounds include cases where only one operator can supply the works or services, or where unforeseeable events create extreme urgency in circumstances that were not attributable to the body awarding the concession. 

The procedure may also be used where the minister has reasonable grounds to consider it necessary and proportionate to protect public morals, order or safety, human, animal or plant life or health, or intellectual property. 

In assessing those grounds, the minister may consider risks to services, jobs, critical infrastructure and Gibraltar’s economic and financial stability. 

Bodies using the procedure must retain a written report explaining their grounds and the steps taken, as far as reasonably possible, to ensure equal treatment and transparency. They must also submit a concession award notice. 

For infrastructure concessions involving capital investment of at least £5m, the amendments permit additional considerations when assessing maximum contract duration, including strategic value, maintenance and replacement costs and construction complexity. 

The justification must be recorded in writing. 

The regulations also allow qualifying publicly advertised expressions of interest to count as an earlier award process, and permit ongoing procedures to continue under the amended rules without restarting. 

“The GSLP Government needs to be clear with people as to what is intended here because the rules are one thing but its application is another and people are entitled to know what concession in particular is being considered and who the Government are intending to benefit by a concession,” said Keith Azopardi, the Leader of the Opposition. 

The GSD said some changes mirrored amendments introduced in November 2025 following criticism by the Principal Auditor of the Government’s adherence to tendering and procurement rules. 

The Opposition said two contracts examined by the auditor involved entities connected either to a government minister or to the party. 

The party recalled the auditor’s concerns that a lack of tendering could create a “perception of favouritism or corruption” or cause “damage to market confidence”. 

It also highlighted concerns expressed by the auditor about ministers bypassing the Procurement Office, including an instance in which its head learnt of a prospective contract award through a government press release. 

At the time, the Government defended its record on procurement and the award of public contracts, rejecting criticism of “irregularities” set out in the auditor’s report as “unjustified” and lacking wider context. 

Addressing the criticism, the Government said that between 2018 and 2025, it managed 270 public tenders, awarding 214 of them through “competitive and fair procedures”. 

In the cases where tenders were not awarded, No.6 said this was typically due to a lack of compliant bids, changes in project scope, or strategic decisions not to proceed in the national interest. 

It said the law even at the time permitted “legitimate alternatives” to open tender “where appropriate” including expressions of interest or negotiated procedures, adding that these processes were “not shortcuts”. 

These were “lawful, strategic tools” that enabled the Government to deliver results where standard procurement alone “would fall short”, No.6 said at the time. 

But the GSD was unconvinced then and criticised the explanation, a position it reiterated on Tuesday as it questioned the new regulations. 

“Rather than accept the Principal Auditor’s criticism it will be recalled that the GSLP launched into a seven-week parliamentary tirade against the auditor,” the Opposition said in a statement.  

“All GSLP ministers then voted in a motion condemning the auditor and rejecting aspects of his report.”  

“That was unprecedented and disgraceful.” 

“They doubled down on that by amending the Procurement (Public Sector Contracts) Regulations to allow them to award public works, supply or service contracts without tender in certain circumstances.” 

“Instead of ensuring that there would be retendering as necessary the GSLP changed the law to allow them to award some contracts without a tender.” 

“On that occasion they sought to legitimise situations where they had faced deep criticism from the auditor.” 

“They have now extended that principle to concession contracts. Why and with what contract in mind?”