Freeport to pay Mepa fee

The Mepa board turned down a request by Malta Freeport Terminals to waive a fee of over €700,000 imposed on it as a condition for the granting of a permit to dredge the Marsaxlokk bay.

The Freeport is obliged to pay the money as planning gain for extensive dredging works that include deepening some sections of the port.

The board's decision was carried with seven votes against the request and two in favour.

During yesterday's hearing the chairman of the Malta Maritime Authority, Mark Portelli, argued in favour of the removal of the fee.

He said that during negotiations for the privatisation of the Freeport the new operators were obliged to carry out any dredging works at their own expense, contrary to normal custom.

"It would be unfair to now also impose a planning gain fee on the operators," Mr Portelli said.

However, the Mepa board turned down the request given that the job was not simply maintenance work since the Freeport was going to deepen the port and affect the underwater marine environment.

Money collected from planning gain fees is eventually passed on to the local councils.

The original permit was granted in February at the same time that Mepa turned down an application for the extension of the quays.

ksansone@timesofmalta.com