HM Government of Gibraltar notes the former Principal Auditor’s comments on the award of the Waste Management Facility contract to Recycle.gi and welcomes the opportunity to clarify the rationale and process behind this vital project, and the significant strategic, environmental and financial advantages that it delivers to the taxpayer.

The decision to proceed via an Expression of Interest (EOI) process was taken in light of the facility’s critical importance to Gibraltar’s national resilience, particularly in the context of a possible No Negotiated Outcome (NNO) with the European Union.

The following details are fundamental to understand the final decision:

• The procurement process followed a public Expression of Interest (EOI), launched in July 2024 and advertised on the Government’s website.

• Nine EOIs were received, with eight proceeding to evaluation by the Department and Ministry for the Environment.

• The EOI specified strict environmental, technical, and financial criteria, including capabilities for advanced waste treatment and local resilience.

• The selection of the preferred bidder was undertaken as part of high-level contingency planning, to prepare for either a No Negotiated Outcome (NNO) or a Treaty with the EU.

• The project is lawfully exempt from standard tendering procedures under Regulation 15(1)(b) of the 2016 Procurement Regulations, which applies to subsidised civil contingency contracts.

• The Government is subsidising the civil engineering elements only.

• The facility will allow Gibraltar to manage and treat its entire municipal waste locally, reducing costly export reliance in the face of rising administrative barriers and future EU restrictions.

• The project supports compliance with evolving EU environmental legislation, including mandatory organic waste separation.

HM Government of Gibraltar reiterates its commitment to transparency and value for money, and stands by its decision to award the Waste Management Facility contract to Recycle.gi following a transparent and legally sound Expression of Interest process. This approach balanced environmental necessity, legal compliance, and national strategic interest, while delivering good value for money over the long term.

While the Government welcomes scrutiny, we are concerned that the former Principal Auditor’s commentary in this instance reflects a narrow and overly procedural interpretation of procurement rules that does not fully account for the urgent realities of post-Brexit planning, environmental compliance, and national resilience.

We also note a pattern of commentary that appears to disregard the legal exemptions that exist precisely for situations of this kind, and which omits relevant context that was made available to the former Principal Auditor during the course of his enquiries. Public confidence in oversight institutions depends not only on vigilance, but also on fairness, balance, and an understanding of the broader responsibilities of government in a rapidly evolving policy environment.

ENDS