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GSD: “Eastside Project Announcement And TNG Global Foundation Deals Require Scrutiny”

The GSD says the Government's Eastside Project and TNG Global Foundation deals “require scrutiny”. 

A statement from the GSD follows below:

The untransparent allocation of major plots of land within days raises continuing questions. The Government  announcement of the TNG Global Foundation as the successful tender for all of the 13 plots at the Eastside  project requires further scrutiny. There are a number of aspects that raise transparency and due process issues  as well as the use of land and value for money.  

Last week the Government announced it was awarding the Bayside and St Anne’s sites to the same entity who  were said to be the highest bidder in the expressions of interest process. The GSD have not had satisfactory  answers as to how that could be so when the EOI process in respect of that site closed in 2017 several years  before TNG Global Foundation were even established. As we have said that raises issues as to the transparency  [fairness?] of that process.  

Close on the heels of that announcement a few days ago there has now been a major award in favour of TNG  Global Foundation of the Eastside project. There is open speculation as to whether the same entity is also  going to be awarded the Rooke site. We will have to wait and see what announcements are made in that  respect. It is strange that having announced a freeze of development on some of these sites there is now an  apparent scramble to award them all to the same entity.  

Earlier yesterday the GSD were provided a copy of a screenshot [now deleted] by Hassans, the law firm, stating that a team of named lawyers from that firm acted for  TNG Global Foundation on this deal. If that is so the Government will need to explain how it dealt with the  obvious conflicts of interests issues that arise. When land allocation processes are carried out there has to be  the highest level of transparency and due process.  



Leader of the Opposition, Keith Azopardi said:  

“We want there to be economic development that is conducted in an environmentally sustainable way and  enhances the quality of life of citizens. Especially at this difficult economic time this is important. In a land  allocation process there should be an evaluation of the overall merits of a bid and what it will deliver to our  community economically, socially and environmentally. An allocation to the highest bidder and a maximising  of value in the public interest are considerations. But it is important that such a process be open and transparent  with no trafficking of interests and no side-stepping of due process. People will need to be reassured by the  Government that this was plainly the case. Additionally this cash-strapped Government is behaving as it is  desperately flogging off the family silver in a way that raises value, prudence and sustainability issues. 

Damon Bossino, the GSD Shadow Minister for lands and planning said:  

“The GSD Opposition will scrupulously analyze, in an objective way, every aspect of the announced  deal. We will not be bedazzled by intense Government selling of the deal, however good the concept  that significant investment such as this means for Gibraltar, particularly at this time. Who will reject  or scoff at the prospect of a new small boats marina, housing and parking - but we cannot collectively  loose sight of the detail, not least in relation to due process, fairness and transparency as raised by my  colleagues?  

The developer’s ideas which are said to be sensitive to the location will also have to be considered  very closely indeed. It cannot, furthermore, be forgotten that they announced a £1.1B deal on precisely  the same site with much glitz and nothing came of it. We will see if the words ‘third time lucky’ will  not have a hollow ring to them – subject to the clarifications we seek in relation to our initial questions,  we hope that they won’t.”  

Elliott Phillips the GSD Shadow Minister for the Environment said the following:  

“The Government has attempted to promote the building of a clean, green and child friendly city. Our  people particularly our young people will require that the development of the site has very significant  environmental assessment and oversight. It is therefore critical that the Government set out a plan on  how they intend to ensure that global environmental standards will be met and how this development  impacts on its commitment to a greener, cleaner and sustainable Gibraltar”  

Roy Clinton the GSD Shadow Minster for Public Finance and Inwards Investment and stated the following:  

“It cannot be denied that the development of the Eastside project is something that is economically  desirable and has been attempted by successive Governments.  

The key to successful development on this scale is not just financing but also the experience of the  developer of whom we currently know very little. The premium of £90 million is not a huge advance  on the £83 million that was promised in the Bluewater Development that never materialized. In fact  when combined with the St Anne’s and Bayside sale terms which will cost Government £8 million, the  net amount in positive cash flow is in fact lower at £82 million.  

The Government has sought to embellish the announcement by highlighting £240 million of ‘savings’  for the taxpayer. Other than the revetment works of £18 million the balance were not announced  Government commitments. In any event they are not direct cash payments to the Government. In respect of the eastside mound it is not clear whether the developer will be moving it at their expense  to Victoria Keys nor indeed if the developer now also has an interest in Victoria Keys.  

The original expression of interest split the site into 13 plots with a total area of 51,550 sqm with a  tender deadline of 4 September 2020. As at 15 September 2021 the Government advised GBC that it  had received 19 expressions of interest. If TNG Global Foundation did not submit a bid on 4 September  2020 it brings into question the entire process.  

It is rare to find an investor at this time who is willing to finance so many projects in Gibraltar and of  course they are to be welcomed, but they must also be willing to submit to public scrutiny given that  so much public land is to be entrusted to them.”