PCRB cancels award over tender committee lack of expertise

A recent decision by the Public Contracts Review Board (PCRB) (Case 1973) highlights several key principles of public procurement law in the context of a tender for the regeneration of St Paul’s Bay, Bugibba, Qawra, Xemxija and Salina Area.

Dalli Advocates assisted its client to challenge the evaluation committee’s reccomendation, upon which the tender was awarded.

The tender used the BPQR method, which requires the contracting authority to award the contract based on technical aspects and other qualitative considerations, rather than just price. The principle highlighted in this case is that evaluators must conduct a thorough and detailed assessment of each bid, scoring each one of the several technical criteria according to a gradation system (out of 100). This ensures that all technical and financial elements are fully considered.

In this case, the PCRB found that the evaluators did not fully comply with this requirement, since they graded every technical criterion with a score of 100 out of 100, rather than using the incremental grading system as was required. This gradation system allows for differentiation in quality, with scores ranging from 0 to 100 based on how well each submission meets the tender’s specific criteria. By assigning perfect scores across the board, the evaluators failed to make a meaningful comparison between the bidders, thus disregarding the requirement to thoroughly analyse each aspect of the tender submissions. This approach undermined the integrity of the evaluation process, as it did not reflect the nuanced differences between the bids, which should have been the basis for awarding marks incrementally according to merit. 

Tied to this principle, the PCRB also stressed that evaluators should possess a basic understanding of the subject matter they are evaluating. In this case, it turned out that the evaluation committee lacked the assistance of a technical expert, and some of the evaluators admitting to having no knowledge in critical areas such as ecology or urban development, even though these were obviously important components of a tender concerning urban regeneration. 

The Board noted that a properly constituted evaluation committee with relevant technical expertise is crucial for the integrity of the process. An evaluation board cannot possibly evaluate a bid thoroughly and in detailed manner if its members do not have specialized knowledge in the subject-matter at hand. 

For these reasons, the PCRB revoked the evaluation’s board decision and the contracting authority to re-evaluate the bids through a newly composed Evaluation Committee composed of new members having a basic understanding of the subject matter.

With extensive experience in the sector, Dalli Advocates has provided support to both bidders and government entities in

New Release: UN’s bold blueprint for managing critical energy transition minerals

On the 11th of September 2024, the UN Secretary-General’s Panel on Critical Energy Transition Minerals released the report entitled, “Resourcing the Energy Transition: Principles to Guide Critical Energy Transition Minerals Towards Equity and Justice.” As the world transitions to renewable energy, the demand for critical minerals such as copper, lithium, cobalt, and nickel is projected to almost triple by 2030 and quadruple by 2040. These minerals are essential for clean energy technologies like wind turbines, solar panels, and electric vehicle batteries.

The report highlights the urgency of addressing the climate crisis, with 2024 being one of the most catastrophic years on record, marked by extreme weather events. Achieving the global goal of limiting temperature rise to 1.5°C depends heavily on the availability and responsible management of these critical minerals.

Released ahead of COP29, the report emphasizes justice, equity, and sustainability throughout mineral value chains. It aims to prevent the exploitation of resource-rich developing nations by embedding seven guiding principles, which include:

  • Upholding human rights and protecting Indigenous communities.
  • Safeguarding ecosystems and biodiversity.
  • Ensuring justice and equity in the distribution of benefits.
  • Promoting economic diversification and benefit sharing for resource-rich countries.
  • Fostering responsible investments, trade, and finance.
  • Ensuring transparency and accountability across supply chains.
  • Strengthening international cooperation to avoid geopolitical tensions.

These recommendations are vital for addressing environmental, social, and geopolitical risks, ensuring that the global energy transition is fair and sustainable for all. Without proper governance, the rising demand for these minerals could exacerbate inequalities, particularly in vulnerable developing nations.

Dalli Advocates can assist in the energy sector and provides advice on both regulatory and transactional matters.

Navigating the Legal Landscape: Critical Raw Materials and Their Role in Global Energy Security

Historically, the energy sector focused on securing fossil fuels—oil, gas, and coal—to meet global demands. However, driven by the Paris Agreement and national commitments (NDCs) to carbon reduction, countries are transitioning to renewable energy sources like solar, wind, and geothermal. While these technologies rely on abundant natural resources, they require critical raw materials (CRMs) such as rare earth elements and platinum group metals (PGMs). This introduces new vulnerabilities, as CRMs are costly and their supply is concentrated in a few countries, making renewable technologies less accessible and more expensive.

The growing demand for CRMs has moved their trade to the center of global priorities. International trade plays a key role in bridging the gap between widespread demand and concentrated supply. This reliance on trade is particularly urgent in the short to medium term, as expanding mining and recycling capacities can take years. Global supply chains are highly interconnected, but many CRMs are controlled by a handful of countries, such as China for rare earth elements and the Democratic Republic of Congo for cobalt.

This concentration of supply creates market power dynamics, allowing resource-rich countries to manipulate prices or limit availability, either for economic gain or as a geopolitical bargaining tool. Trade tensions, such as those between the U.S. and China, have already sparked concerns about access to CRMs critical to industries like defense, electronics, and clean energy.

To mitigate risks, several strategies are being pursued:

  • Supply chain diversification through new sources and international partnerships,
  • Increased recycling capacity to ease the demand for newly mined CRMs,
  • Stockpiling reserves to protect against future shortages, and
  • International cooperation to ensure stable and fair access to CRMs.

In the U.S., the Strategic and Critical Materials Stockpiling Act, originally focused on national defense, was expanded in March 2022 to include critical minerals for clean energy technologies. This interagency effort between the Departments of Energy, State, and Defense reflects the growing importance of CRMs for both military and energy needs. Stockpiling these materials stabilizes prices and supports domestic industries, spurring innovation and the development of supply chains for extraction, processing, and recycling.

Similarly, the EU responded with the Critical Raw Materials Act (CRMA) in May 2024, aiming to secure diversified and sustainable CRM supply chains. The Act targets reduced reliance on China by fostering partnerships with resource-rich countries and setting ambitious goals for domestic CRM production—10% from local extraction and 15% from recycling by 2030. Strategic Projects in the EU and beyond will benefit from easier financing and faster permitting processes. The EU will also create a Joint Purchasing Mechanism to aggregate demand and negotiate with suppliers, similar to mechanisms used during the Ukraine crisis.

Growing demand for critical materials calls for better stewardship within a circular economy framework. Both the U.S. and the EU are making significant efforts to secure access to CRMs, essential for their clean energy transitions and broader industrial needs. These policies are critical to building resilient and sustainable supply chains in an increasingly competitive global market.

Dalli Advocates can assist in the energy sector and provides advice on both regulatory and transactional matters.