EU tops up Malta’s energy funds to €25 million

EU leaders have this morning decided to top up Malta’s allocation of fresh EU funds to be used for energy projects by a further €5 million putting the island’s global grant to €25 million.

Sources close to the still on-going discussions confirmed that the EU has agreed this increase following more pressure put by Prime Minister Lawrence Gonzi during negotiations late last night.

Originally, Malta was only allocated €6 million from a new €5 billion EU fund aimed at disbursing ‘unspent’ funds among its member states to help them put in place energy and broadband related projects while helping to kick-start the ailing economy. The commission then proposed increasing assistance to €20m after Malta complained.

‘Malta has managed to do very well in this summit as it’s original allocation has now been considerably increased,’ an EU diplomat told The Times.

According to draft summit conclusions, the €25 million allocation, which is over and above the €855 million grated to Malta according to the 2007-2103 budget, will have to be spent in projects which commence not later than the end of 2010.

This will mean that Malta has now to speed up its plans for the installation of a submarine electricity cable with Sicily connecting the island with the European electricity grid and to put in place its first offshore-wind farm earmarked for an area of shallow water known as ‘Is-Sikka l-Bajda’ off the Mellieha coast.

The summit will come to an end this afternoon.