Updated: Dockyard offers announced
Talks on sale of superyacht facility, shipbuilding site stopped
(Adds PL statement)
talian shipyard Palumbo has submitted an offer of €67.3m (gross) for the 30-year concession of the land occupied by the ship repair facilities of Malta Shipyards, Finance Minister Tonio Fenech revealed this afternoon.
He said that talks with the company were very advanced but a final deal had not yet been reached. Conclusion was expected in the coming weeks after legal issues were solved and talks were held with the GWU. Parliament would then have to approve the transfer of land.
Mr Fenech explained that the net value of the offer was €52.7 million over the period of the concession. He did not specify what up-front payments would be made since details would be presented to Parliament.
Mr Fenech said the government was confident that Palumbo, which has a small shipyard, would make a success of its investment in Malta.
Mr Fenech was speaking at a press conference. Also present was Emanuel Ellul, head of the Privatisation Unit.
MANOEL ISLAND YACHT YARD
The minister said that the Privatisation Unit had received an offer of €12.4m from the Manoel Island Shipyard Consortium for the Manoel Island Yacht Yard, about which talks were also very advanced. He said this was the net value of the deal for the 30-year concession. The investors had committed themselves to invest €2 million to improve the facilities and €4 million to reclaim land to extend the 'yard.
TALKS STOPPED
Mr Fenech said the privatisation of the Superyacht facility at Cospicua and the former Malta Shipbuilding site have been stopped because the financial offers were unsatisfactory.
He said there was no suitable offer for the superyacht facility. This, he said, was a profitable enterprise which the government would sell when the right offer was made.
As for the former shipbuilding yard, the government had selected Valletta Gateway Terminals as the preferred bidder but there was a wide difference between what the company offered and the valuation made by the government. The bidder had therefore been informed that the process had been stopped.
The site was the biggest of the privatisation process, Mr Fenech said, and the government would re-assess the site's potential and future use.
"We have to think outside the box," Mr Fenech said.
PL's INITIAL REACTION
In an initial reaction, the Labour Party said that the net value of €52.7 million the government would get from the privatisation of the yard over a 30-year period was equivalent to what it paid in a day to buy back the promise it made public transport operators.
The government did not say how many people the Italian company would be employing, what investment it would be making and what type of committments were to be requested from it as part of the agreement.
Spokesman Charles Mangion hoped that Parliament would be given clearer explanations for the people to be in a better position to evaluate the proposal made.
See also
Government announces preferred bidders
http://www.timesofmalta.com/articles/view/20090605/local/government-announces-preferred-bidders
29 Comments
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George Borg
Feb 4th 2010, 20:42
Very well said J. Buhagiar. Pretty obvious that according to our Government, in Malta we don't have good quality management or CEO's that could make a business plan that works.
One wonders how the private sector achieves so much, whilst our public sector has no option but to bail out, quick.
J. Buhagiar
Feb 4th 2010, 17:19
@ Martinelli or anyone that thinks he/she has the knowledge to shed some light.
As Martinelli said, I too "foresee a successful operation" IF "managed by an experienced team which will modernize the 'yard and turn it into a profitable entity."
A debate on MTV many years ago, John Dalli and Bertu Mizzi - as I understand all seem to agree that Good Quality Management" was key - you do not close down a team of knowledge, people and expertise that can build a car or ship.
A good CEO can turn around a company to competitive and profitable with a good business plan, quality management and skilled re-engineering.
Fiat, VG, BMW, Audi, German ship yards and so many more are all good examples. All re-engineered/not sold. By contrat the British lost everything be it autos, motor bikes, office equipment, they lost or sold.
Why does it seem that Germany and Italy can re-engineer and keep most major industries without selling to foreigners - while the British sell. And we seem to be going through the same path.
Germany even manage to keep Skoda that was in ruins! Where did the money come from?
I really cannot understand.
jo cassar
Feb 3rd 2010, 19:56
Another gift to foriegners (JUST LIKE THE MID-MED TO H.S.B.C.) at the expense of the maltese tax payer. as usual with this incompetent government...weak with the powerful and strong with the weakest section of the maltese,..... those who this cabinet swore to defend.
Ivan Attard
Feb 3rd 2010, 13:59
L-istorja tkompli tikkonferma kemm il-PN mhuwiex kapaci jaghmel deal tajjeb mal-barrani ghall-gid tal-pajjiz.
1. Ftit qabel l-1964, il-PM Dr. Gorg Borg Olivier kien ghamel trattat mal-Inglizi dwar l-Indipendenza ta' Malta. F'dan it-trattat, Dr. Borg Olivier, dak iz-zmien PM u Kap tal-PN, kien ghamel kundizzjonijiet mizeri u l-Inglizi thallew izommu l-bazi militari taghhom f'Malta, izommu l-pulizija taghhom u jperpru l-bandiera Ingliza fuq binjiet pubblici. Din x'indipendenza hi?? Meta tela' Mintoff fl-1971, beda jinnegozja trattat gdid ghal Malta li kien jobbliga lill-Inglizi sabiex jaghtuha somma kbira ta' flus fis-sena biex jghinuna nkeccuhom 'il barra minn artna! Irnexxielu jgib ftehim li sahansitra Lord Carrington kien qal 'I have never seen such a type of person in my life... he does not give an inch for his country!!'. Mintoff wassal lil pajjizna ghall-helsien veru f'Marzu 1979;
2. Il-bejgh tal-Mid Med Bank lil HSBC ghal prezz mizeru;
3. Il-bejgh tal-assi pubblici kollha ghal prezz tat-tfal ecc ecc.
Il-PN MHUX KAPACI BIEX IMEXXI.. QIEGHED HEMM GHAX JAGHMEL HAFNA FAVURI QABEL L-ELEZZJONI! F'MALTA, IL-POLICIES MA JIMXUX... F'MALTA, IL-POWER OF INCUMBENCY LI KIEN SEMMA ALFRED SANT F'MARZU 2008 TILGHAB IL-LOGHBA KOLLHA!!
alfred zammit
Feb 3rd 2010, 11:34
LEAST YOU FORGET
Do you know how many millions of our old lira ,from our taxes were pumped down the drain and in return we got tugs/gangs leaving their work to go and beat up innocent people and attacking the law courts and Curia.You have to calculate the millions loss to amount gained.
Mark Galea
Feb 3rd 2010, 11:27
@Igalea
my friend, at last, after so many years, the mighty dockyard army has been swept away by democracy - their torch has been blown out - Malta can now look forward to look in the future and forgot those years when such people threatened society in general.
joanna farrugia
Feb 3rd 2010, 10:15
at last the truth came out.shame on this goverment for getting only 2 million euros a year.it was pure vendication towards the workers of the dock cos his only aim was to close it.ha jithallas bil karawett biex jixtri wedgha li ma zammx.tal misthija.
fredmallia
Feb 2nd 2010, 21:49
who expected a better deal by a govt that ruined on purpose the drydocks??? shame this is the result of 'vendication' govenment.
lgalea
Feb 2nd 2010, 20:55
J Martinelli Gonzi gave the bus owners more than what the Italian company is giving for the Shipyard for 30 years!!!! Keep on joking Martinelli. You make April 1 day every day.
A Zammit
Feb 2nd 2010, 18:24
Finally!
Hope that after this move, the workers will start contributing to the Maltese economy. 20 million euros a year as subsidies is a huge sum out of our pockets dear moaners.
Charles Caruana
Feb 2nd 2010, 17:33
Lanqas haqq is-somma li ta lil tal-karrozzi tal-linja ma gibna. Jigifieri kocc karrakki msadda kienu jiswew aktar minn bicc art bhal dik bil-makkinarju b'kollox meta suppost li huma hallsu tat-tniggiz li ghamlu tul iz-zmien u l-hsara fl-industrija tat-turismu bl-atitudni arroganti taghhom!!
wally vella-zarb
Feb 2nd 2010, 17:11
Wonder of wonders, our old buses were worth more in the eyes of the Government. Perhaps wearing blue-tinted glasses has that effect on our usual commentators?
Joe Vella
Feb 2nd 2010, 17:01
@ D. Scerri
"Basic rule of economics: Something is only worth what someone else is prepared to pay for it. If no-one is prepared to pay value X for the item, it's because it's not worth that amount."
You are only partly right. Economics condition do play a major part. I am sure that the Government is in the opinion that in the future Economic Conditions will contribute to better offers for the Superyacht facilities.
J Martinelli
Feb 2nd 2010, 16:28
@ Kieron O'connor
If your suggestion is taken up, it would cause another U-turn by the Party which was willing to continue with the losing Shipyards and pouring more subsidies by the millions!
If the Italian company is willing to pay €67.3m, they figure that there is a future in the ship repair industry. It will employ a few hundred workers whose wages will contribute to the Maltese economy.
Palumbo is not a charitable institution and their offer is proof that they can foresee a successful operation managed by an experienced team which will modernize the 'yard and turn it into a profitable entity.
However, within twenty-four hours we will hear Joseph and the PL tell us that the offer is not high enough and had they been governing, they would not have accepted it! Instead they would have sank more millions to keep the GWU happy! They are so predictable!
A. Slater
Feb 2nd 2010, 16:20
@ Mr. Kieron O'Conner and M.Gauci
I 100% agree. Take a look at St Katherine's Dock in London - right next door to Tower Bridge for some 'thinking outside the box'
lgalea
Feb 2nd 2010, 15:47
Kieron O'connor
NO BUILDINDGS kieron.
Why should new buildings which will cover part of the bastions be allowed when the British Navy oil depot at Kalkara is being demolished to be able to see all the bastion?
John Schembri You are right. Remember that it is euros that they are talking about not Malta Liri.
joe muscat
Feb 2nd 2010, 15:44
Ma nafx fhimtx sewwa , dan il-prezz jinkludi it-taghmir u l-ghodda kollha li hemm got tarzna, jekk iva ma tantx huwa deal fenominali. Deal ghal 30 sena , nistghu nimmaginaw wara 30 sena it taghmir li hemm fliema kundizzjoni se jkun.
Joe Cassar
Feb 2nd 2010, 15:43
The sum offered is less than the amount lost on one single contract - The Fairmount Conversion. And that loss was certainly not due to the workers.
When are the police going to DO THEIR DUITY and investigate that contract and how it was negotiated and signed??
alfred micallef
Feb 2nd 2010, 15:32
From 1987 onwards this government had all the time he wanted to arrange the situation of the drydocks but instead he did nothing of significance but offering money for wokers to leave and never taking things seriously and bringing profitable work.The last death blow was the fjord contract which was supposed to save the docks according to Mr Gonzi.Now i hope that palumbo will provide work for the MALTESE and not bring cheap labour from europe
Michael Seychell
Feb 2nd 2010, 15:12
Reading Mr. Lino Spiteri's article yesterday, I was surprised how a man of such calibre has swallowed the 'scoop' made by Saviour Balzan' team.
Lino should have known that Mr. Emanuel Ellul Chairman of the Privatisation Unit , who was ex Research Officer of the GWU and later of the Central Bank, as well as, (if I am not mistaken) the Head of the Central Bank, will not be so naive as to accept such ridiculeous amount as suggested by Degiorgio's/Balzan's Paper.
One last point - Whilst JM and his followers bark that this government decides without consulting the Unions, Mr. Feneck stated that before going to Parliament he will be talking with the GWU.
Well done Mr. Fenech and the Privatisation Unit.
Michael Seychell
Tal-Pieta
M.Gauci
Feb 2nd 2010, 14:57
Well said Mr. Kieron O'Conner. One only has to look at and to mention but 2 projects in the UK, that of Old Trafford in Manchester and London's Dock lands. These 2 gems were once no go areas.
wally vella-zarb
Feb 2nd 2010, 14:49
A sad development for owners of modest boats who, like me, used to have our boats hauled out at Manoel Island Yacht Yard, arguably the best one in Malta. Under the new owners we will no longer be allowed to do any work below the waterline ourselves. I can understand refusal to bring outside workers to do work that can be done by the yard employees, but to prevent the owners from carrying out the work themselves makes for a captive market, which is an unhealthy situation. Part of the satisfaction of owning a boat is the D-I-Y factor, while hiring professionals for the more skilled tasks. Now we cannot even apply antifouling paint! I would not be surprised if, as already happens in other yards, this work will be done by the new, illegal 'expert' labourers. :-(
John Schembri
Feb 2nd 2010, 14:47
An unimpressive amount, considering what was paid in early retirement. We actually sell at a loss, like almost everything else in the dockyard's history. One wonders if we'll see the same with the public transport tender. Taxpayer the only one losing out. Pat on the back dear Minister.
J.Tonna
Feb 2nd 2010, 14:46
@ Kieron O'connor - Do you know anyone who is ready to offer this?
@ D. Scerri - ' Something is only worth what someone else is prepared to pay for it'. But business goes like that and not give in on the first offer.
H Grech
Feb 2nd 2010, 14:29
Labour commentors nowhere to be seen. Where is Joe Grima today? Will this be the last item before sport on Super One news?
D. Scerri
Feb 2nd 2010, 14:22
"no suitable offer for the superyacht facility. This, he said, was a profitable enterprise which the government would sell when the right offer was made."
Basic rule of economics: Something is only worth what someone else is prepared to pay for it. If no-one is prepared to pay value X for the item, it's because it's not worth that amount.
Ledley Zahra
Feb 2nd 2010, 14:17
@ E Cachia
forsi vera semaw 5.7 imma 52.7...qatghu zewg numri!!! lol
Risposta tajba u f waqtha. Wow. Onestament ma stennejtx daqshekk. Prosit Tonio Fenech. kliem mill-inqas, rizultati mill-aktar
Kieron O'connor
Feb 2nd 2010, 14:15
The site has huge potential for tourism in Malta if developed right.
High standard Marina and yachting facilities, low rise luxurious apartments with sea views, quay side dining and the like.
With a bit of vision and investment the area could have huge potential for jobs and tourism, far in excess of the paltry 67 million recieved in the short term.
It would be like Valetta waterfront multiplied by 100.
E Cachia
Feb 2nd 2010, 14:06
Basta Kien hemm xi "gurnal" li ghandu agenda partikolari qal li ser tinbieh ghal 5.7m Euro..." Shipyard sale tagged at measly 5.7m offer "
mhux ta b'xejn il-kredibilta taghhom dejjem niezla .. !