A third of a billion euros for seven major projects
The breakwater bridge is still at planning stage and money needs to be allocated to it in the next budget. Photo: Chris Sant Fournier
It is still too early to determine what the government's capital expenditure will be in the next budget, but seven major projects announced in the past months have a staggering price tag of more than a third of a billion euros.
The seven projects analysed by The Times are: Dock Number One in Cospicua; the regeneration of the Menqa in Marsa;, the Renzo Piano City Gate regeneration project in Valletta; the new campus for the Malta College of Arts, Science and Technology in Kordin; the Upper Barrakka lift and the breakwater bridge in Valletta; and the new cancer facility to be built on the hospital grounds at Mater Dei.
The total price tag of €383.8 million for the seven projects beggars the question of how they will be financed, especially when considering that the government's capital programme includes roads and other investments not listed here.
According to the finance ministry, not all the projects will be financed through the national budget since some would be part-financed by the EU. However, it did not specify what percentage of the funds would be covered from Europe.
In the case of Menqa's regeneration, the government's expenditure is expected to cover infrastructural works such as roads but the rest has to come from private investment.
When asked what allocation would be given to each of these projects in the Budget for 2010, a ministry spokesperson said the budget was "still being drawn up".
He did not answer a specific question as to which projects were considered top priority.
Works on the Barrakka lift and the breakwater bridge were slated to start this year, however, they are still at planning stage and money would need to be allocated for both these projects in the next budget.
According to public announcements made when the projects were launched, work is scheduled to start in 2010 on the Dock Number One project, Piano's City Gate regeneration and the cancer centre at Mater Dei.
The project that has been the longest in coming is the construction of a new campus for Mcast in Kordin.
It was first announced in 2007 by Prime Minister Lawrence Gonzi during the Nationalist Party's general council. However, since then no target dates have been set for the start of works.
The project was reiterated in the PN's electoral programme but no funds from the Budget have been allocated for the major works yet.
Only three of the seven projects have had a target date set for completion. The most notable is Mr Piano's City Gate, which the government wants ready by 2013; the end of this legislature. The cancer centre is expected to be finished a year earlier, in 2012, while the Barrakka lift's construction is to end in 2011.
No target completion dates were set for the other projects.
Capital projects
Dock No. 1, Cospicua
Cost: €12 million
Announced: July 14, 2009
Minister: Austin Gatt
Start date: 2010
End date: Not announced
Financing: Government
Menqa regeneration, Marsa
Cost: €130 million
Announced: July 04, 2009
Minister: Austin Gatt
Start date: 2011
End date: Not announced
Financing: Government will pay for infrastructure, private sector will cover the rest
Renzo Piano City Gate regeneration, Valletta
Cost: €80 million
Announced: December 01, 2008
Minister: Lawrence Gonzi/ Austin Gatt
Start date: 2010
End date: 2013
Financing: Government
New MCAST Campus, Kordin
Cost: €117 million
Announced: May 27, 2007
Minister: Lawrence Gonzi/ Louis Galea (former education minister)
Start date: Not announced
End date: Not announced
Financing: Government and EU funds
Upper Barrakka lift, Valletta
Cost: €2 million
Announced: March 26, 2009
Minister: Austin Gatt
Start date: 2009
End date: 2011
Financing: European Regional Development Funds
Breakwater bridge, Valletta
Cost: €2.8 million
Announced: February 13, 2009
Minister: Austin Gatt
Start date: 2009
End date: Not announced
Financing: Malta Maritime Authority
Cancer centre, Mater Dei
Cost: €40 million
Announced: July 26, 2009
Minister: Lawrence Gonzi/ John Dalli
Start date: 2010
End date: 2012
Financing: Government and EU funds
Capital expenditure
The government's capital expenditure covers various projects of an infrastructural nature and investment that is unrelated to recurrent costs.
Between 2007 and 2008, capital expenditure dropped by almost €36 million, from €257.9 million to €222.1 million. Until May the total spent on capital projects so far this year stood at almost €100 million.
18 Comments
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Johnny Xerri
Aug 6th 2009, 15:49
@ C Cassar
I wonder if the antihunting support for a ban is there to support government rather than the birds.
I mean really how can one be proud of a ban on hunting in Malta when all EU 26 (27 if Malta had the guts to impliment the birds directive correctly) practice hunting practically all year round.
How effective is a ban on only 17000 hunters out of the 7 million in the rest of the EU?
Birds must be really benefiting by having 0.24% of hunters less, (which are totally out of the migratory route). Wow if just by chance, i land in Malta, I am safe. But I have every chance of landing in the EU with 7 million hunters waiting for me. If birds could reason, Malta would soon become their major destination.
As for the britsh economy just have a look at this
http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-15052009-BP/EN/2-15052009-BP-EN.PDF
The following GDP growth rates from 2008Q4 to 2009Q1
UK from -1.6 to -1.9
German from -2.2 to - 3.8
Spain from -1 to -1.8
In fact the euro area from -1.5 to -2.5
So yes the Sterling is cheaper, but at least the recession is not as deep
Joe Camilleri
Aug 6th 2009, 09:08
@ C Cassar
and the 1,000,000 euros to birdlife just to tag a couple of birds, when that money could have been used for better use.
F.Attard
Aug 6th 2009, 08:42
Gozo, any project for Gozo????? Sur Ministru
CASHA ALEX
Aug 6th 2009, 07:23
@ c cassar.. Even dirty old habits such as hunting an trapping are slowly being eradicated through wider education brought only by the experiences of other EU countries,
If i were you dont state such foolish things about the maltese habitts.hunting and trapping are both traditions and shound be preserved as other cauntys do.and if these traditions can be improved under the ue regiulations why not !!!!!!!!!! the only thing that is dirty is your mouth cos do talk rude about somthing you dont mind at all.if you look at the cauntryside around you that are been taken care by hunters and trappers you will see their dirty habbits,
how much the goverment spent on projects to improve the cauntryside ingeneral ?????? NOTHING only the hunters and trappers do improve the cauntryside,so stop an think before you write
lgalea
Aug 5th 2009, 22:46
C Cassar
You are wrong Cassar.
How about the millions we are losing from the Italian Protocol, the loss of the interests on the foreign reserves that had to be transferred to the ECH which now gets the interests, the millions we are constantly paying for our civil servants to go to Brussels and other countries every day in connection with eu business, the 40 police that we have constantly working and implementing on the schengen agreement, the customs officers which we pay to collect customs duties and levies which now all go to the eu instead of remaining for us, the millions we are paying from our taxes to fishermen and farmers to offset their suffering from membership while the price of vegetables, fruits and fish has gone through the roof while our farmers and fishermen are being destroyed, the millions we are spending on illegal immigrants for whom we had to open our country's doors wide open on eu orders, the foreigners and illegal immigrants who are stealing work from our own brethren Maltese citizens by undercutting them lowering our wages and working conditions, the destruction of our industries and everything we had built up during the years.......
Alfred Cassar
Aug 5th 2009, 20:17
@Lawrence Martinelli I'm really surprised with your declaration against the introduction of the EURO. You, a UK resident, of all people are criticising the EURO introduction. You should know that the Sterling you have in your pocket and in your Bank has lost around 30% of it's value in just one year. Are you happy with that sir? I wonder. Try going for a holiday anywhere in Europe... it will cost you around 30% more than last year plus any cost of living increase. are you happy with that too? I wonder. Do you realise that the value of all your investments in GBP fell around 30% in the last year plus any other losses that the investment might have incurred. Are you happy with that too? Coming from a UK resident I was really surprised with this comment
Paul Caruana
Aug 5th 2009, 19:00
Why on earth is it so important to rebuild the breakwater bridge?
v.pulis
Aug 5th 2009, 18:01
it would be far better if those euro 2.8 million earmarked for the useless breakwater bridge were spent on fort St. Angelo's restoration. The fort lies in the grand harbour area so the money would be going to the grand harbour rejuvenation plan just the same.
r sammut
Aug 5th 2009, 17:48
@C Cassar “Many projects since EU membership have received substantial EU funding without which Malta would definitely be stuck in the 3rd world. Even dirty old habits such as hunting and trapping are slowly being eradicated through wider education brought only by the experiences of other EU countries.” You really believe that Malta has made this huge jump from 3rd world, since being in EU? Your ‘though wider education’ should read ‘through blatant ignored guarantees and restrictions’! Perhaps Sir you meant joining Jupiter, not the EU as a better place where hunting and trapping is eradicated! If EU funds come with attached strings (as deadlines!?), then Malta will be missing out quite a few millions of € along the way!!!
Lawrence Martinelli
Aug 5th 2009, 16:43
@ lgalea = I think, you are right.
Joining the EU was useless for =
It has not improved trade at all......Malta already had good trade links with Europe.
Joining the euro currency was diabolic.
I live in the UK but have had personal links with Luxembourg since 1968.
Due to its geographical location it suited Luxembourg.
But......the Euro only brought high prices on everyday necessities.
When in Malta , I was often asked about the Euro.
Some people thought I was a scaremonger for telling the Euro's "bad" news.
I have already said so.....Malta broke away from sterling and managed its affairs
quite well......Why was it chickened into the Euro .....to play soccer in the First League
with the "Big-Boys" ? Handing its affairs to the ECB in Frankfurt becouse it could not
manage any longer with the Malta Lira ?
There are many ??????? that make the whole business doubtful.
victor borg
Aug 5th 2009, 15:34
V.Pulis, I agree with you 100%.
Who needs a bridge that leads to nowhere and nobody can cross?
Nobody except the bridge builder.
Stephen Farrugia
Aug 5th 2009, 15:33
The economics of everything is Communist. We are a Communist country, with a Communist economic mentality. All this makes little economic sense. We are on the wrong road and this economic road, will have the same ending of the Berlin wall of 1990.
Alexander Morana
Aug 5th 2009, 15:00
C. Cassar wrote:
Malta has always been a net gainer with regards to EU funds since it joined the EU. This will remain the status until Malta's GDP reaches a level where it will then be a net contributor. This is quite fair since at that point Malta will have greatly benefited from EU membership reflected by it's higher GDP.
At the present rate our GDP is going it will be never! Mr. Cassar you forgot to mention that it's 2013 that Malta has to be a net contributor and not when our GDP reaches a higher GDP. The EU funds will run out one day or the other and we will have to pay with our taxes to the EU budget!
Presently our economy is no growing at all. Our Tourism is dying. Our manufacturing almost but disappeared. Our deficit is ever growing and according to the EU we have to balance the books by 2010! If we don’t we will not see one euro in transferable funds. Perhaps you might be the one left behind in your dreams if you don’t face reality.
C Cassar
Aug 5th 2009, 14:42
@ IGalea - Malta has always been a net gainer with regards to EU funds since it joined the EU. This will remain the status until Malta's GDP reaches a level where it will then be a net contributor. This is quite fair since at that point Malta will have greatly benefited from EU membership reflected by it's higher GDP.
If Malta hadn't joined the EU it would still be trading with Tunisia and Libya, great. EU membership has given the youger generations of Malta fantastic opportunities within the rest of the EU block. It's also brought a very stable currency. Just look at the UK, whilst in the EU it has opted to stay out of the Euro resulting in the worst performing economy in the EU.
Many projects since EU membership have received substantial EU funding without which Malta would definitely be stuck in the 3rd world. Even dirty old habits such as hunting an trapping are slowly being eradicated through wider education brought only by the experiences of other EU countries,
The list is endless, get over winging about the EU otherwise you'll just get left behind even more.
v.pulis
Aug 5th 2009, 14:37
I have tried stretching my imagination to see how the break water bridge could be considered a priority. This bridge was requested by no one, it will lead to nowhere and will achieve nothing. Who would want to go down to balow fort St. Elmo and cross onto the breakwater arm? I have even heard that it is actually illegal to do so.
lgalea
Aug 5th 2009, 12:02
Part financed by the eu?
And who is paying the eu?
US Maltese taxpayers.
So any money that we get is from our own money sent earlier which has to be spent with all strings attached.
This is another negative aspect of eu membership.
Paul Barrett
Aug 5th 2009, 11:42
The first thing to bin is "The bridge to nowhere".
Joseph Micallef
Aug 5th 2009, 10:15
Let's see how many of these projects will remain half-baked!