Draft sets priorities for EU funds

Projects related to road, air and sea links will get the biggest portion of EU funds - €136 million - that target public infrastructure and aid to industry over the next seven years, according to a draft document for consultation launched by the government yesterday.

In line with the conditions to receive the funding, an additional €24 million (Lm10.3 million) from Malta will be added to this figure under the plan, which will be submitted to the EU for approval.

The aim will be to upgrade roads and invest in sea and air ports that form part of the Trans-European Network for Transport (TEN-T), in a bid to meet the requirements of this network and Malta's economic development.

The improvement of accessibility and services of general economic interest will benefit from €145 million in all, 85 per cent of which (€123 million) will be financed by the EU.

Third in line, with €136 million, is the upgrading of the environment infrastructure, which includes minimising landfilling of waste and rehabilitating disused landfills and increasing the capacity for waste treatment for energy recovery and recycling purposes.

The government has committed itself to spend a minimum of 10 per cent of EU funds for Gozo projects.

The draft document presented yesterday relates to the money to be made available by the EU under the European Regional Development Fund and the Cohesion Fund. Another consultation document on projects to be co-financed by the European Social Fund is expected to be launched next month.

In all, Malta will be expecting to receive €672 million from the EU between next year and 2013, and in turn the authorities and industry will foot a further €151.

Parliamentary secretary Tonio Fenech stressed that the funds must be distributed in such a way that the country can absorb them, since EU-funded projects have to be finished within a specific time frame.

He said all government structures needed to be prepared for the work involved in carrying out the projects. Because of the time-frame established by the EU one could not afford to embark on complicated projects.

The authorities were looking into which specific projects would be financed through the funds.

A meeting with the EU, during which the government would present a list of projects, is scheduled for mid-August. Mr Fenech expressed the hope that the government would have a reply by the end of summer or the beginning of October.

The next steps include the finalisation of the relevant evaluations and discussing the draft document with the Malta Council for Economic and Social Development.

Comments in writing about the two documents can be sent either to nsrf@gov.mt or to the drafting team within the Office of the Prime Minister up to August 14.

Distribution of funds

Priority Axis 1: Implementing an Enterprise Support Infrastructure - €108 million EU funds, €19 million national funding.

Priority Axis 2: Supporting Enterprise - €27 million EU funds, €41 million private sector contribution.

Priority Axis 3: Sustainable Tourism - €60 million EU funds, €10 million national funding.

Priority Axis 4: TEN-T Infrastructure - €136 million EU funds, €24 million national funding.

Priority Axis 5: Improving accessibility and services of general economic interest - €123 million EU funds, €22 million national funding.

Priority Axis 6: Upgrading environment infrastructure - €116 million EU funds, €20 million national funding.

Priority Axis 7: Urban regeneration and quality of life - €87 million EU funds, €15 million national funding.

Priority Axis 8: Technical assistance - €15 million EU funds, nil national funding.