The Government says it notes the statements made by the GSD regarding the award of the Maintenance and Operation Services at Kingsway Tunnel contract.

A statement continued: “The assertions made are unfounded and misrepresent the facts. The tender process was carried out with full transparency, in strict adherence to Procurement Regulations, and with no ministerial involvement at any stage.

A Fully Regulated Tender Process

“The tender was issued by HM Government of Gibraltar in July 2025, on behalf of GUT Limited, the publicly owned company responsible for the operation of Kingsway Tunnel. As the value exceeded the financial thresholds set out in the Procurement Regulations, the process was subject to the full set of statutory requirements.

“The evaluation criteria applied in this tender followed Regulations 57, 58 and 67. These criteria include mandatory exclusion grounds, technical capacity, relevant experience, and contract performance history. All criteria were set out in advance and published as part of the tender documentation. The process followed the Single Procurement Document procedure, which is derived from EU Regulation 2016/7 and ensures consistent, regulated and legally compliant assessments of bidders.

“Any suggestion that tenderers had unrestricted freedom in the criteria used or that proper oversight was lacking is incorrect and not supported by the facts.

Independent Evaluation by Senior Public Servants

Bids were evaluated in October 2025 by a panel of senior public servants. The panel consisted of:

• Mr Emil Hermida, CEO of the Technical Services Department, who acted as Chair

• Mr Stanley Antoniou, Acting CEO of the Gibraltar Electricity Authority

• Ms Krisanne Baglietto, Senior Executive Officer in the Treasury Department

“The Kingsway Tunnel Manager and staff from the Procurement Office attended the meeting.

“There was no involvement by Ministers at any time. After a detailed assessment, the panel recommended that the contract be awarded to Calpe Electrical Limited.

Competition and Value for Money

“Two companies submitted bids, which satisfied the requirement under Regulation 65 (5) for genuine competition. The competing bid from Sheriff Group Limited was valued at four million six hundred and twenty thousand pounds, which was more than six hundred thousand pounds higher than the bid submitted by Calpe Electrical. Calpe also offered additional services that were not expressly required under the specification but added value to the overall operation of the tunnel.

Past Incidents Fully Considered

“The panel considered the past performance of Calpe Electrical, including the power outage incident of April 2025. Calpe accepted responsibility for its role in that issue. The panel was also informed of the subsequent investigations by the Gibraltar Electricity Authority, which identified a pre-existing weakness in the cable that contributed to the delay in restoration. Under the procurement regulations, tenderers are permitted to demonstrate that corrective measures have been taken to address any past shortcomings. Calpe satisfied the board that these measures had been implemented.

“The Kingsway Tunnel Manager also confirmed to the panel that Calpe had consistently provided a high quality service during its years as the incumbent contractor and had, on several occasions, exceeded its contractual obligations.

Propriety in the face of Opportunism

“This tender was conducted with full compliance with all procurement rules and frameworks. It was evaluated independently by senior civil servants. All relevant factors, including past performance and value for money, were carefully assessed. The recommendation to award the contract to Calpe Electrical was based solely on the criteria set out in the tender and the professional judgement of the independent panel.”

Chief Minister Fabian Picardo, said: “It is regrettable that the GSD continues to make claims that are either the product of a failure to understand the facts or a deliberate attempt to distort them. In doing so, they undermine public confidence in a lawful and professionally run process and cast unfair aspersions on the integrity of the civil servants who have carried it out with complete independence.

“This conduct misleads the public with the purpose of creating a self-serving, electoral narrative that unfairly tarnishes Gibraltar’s institutions and the people who serve them with professionalism and integrity every day.”