Updated: Malta at loggerheads with Brussels over aviation fuel, noise

Adds government reaction - Brussels warned Malta today to come in line with its directives on competition in the aviation fuel sector and on environmental noise legislation or risk being taken to the European Court of Justice.

In its warning on the supply of fuel and oil products at Malta International Airport, the European Commission said that Malta airport did not conform with EU directives.

The rules transposing the directive in Malta include a limitation on the opening-up of the market to two suppliers as well as the launching of a European call for tender for their selection. Moreover, the Commission said that the conditions under which the two suppliers were selected was not fully in conformity with the directive.

In addition, the Maltese authorities did not organise an independent verification of the separation of accounts even though one of the two suppliers of fuel handling services was also the manager of the storage and fuel supply facilities.

Brussels gave Malta two months to respond and act.

With regards to environmental noise, the Commission said it was issuing its second warning to Malta calling upon the island to fulfil its obligations under Directive 2002/49/EC relating to the assessment and management of environmental noise.

According to the Commission, Malta has failed to draw up strategic noise maps.

The Noise Directive sets out a common approach to avoid, prevent or reduce the harmful effects of exposure to environmental noise.

Under the Directive, member states are to measure environmental noise (using a standard methodology and standard indicators) to draw up strategic noise maps for major urban agglomerations, roads, airports and railways. In this case Brussels gave Malta just one month to respond.

GOVERNMENT REACTION

The Government in a statement on the situation at the airport, said that in April 2003, Malta International Airport launched an EU-wide tender for the provision of Groundhandling services. Two bids were received.

After evaluation, both bidders were awarded the contract. In line with Council Directive 96/67/EC of 15 October 1996, on access to the groundhandling market at Community airports, the incumbent supplier, which was one of the two bidders, kept separated accounts and these were forwarded to the Commission on 10 March 2010. A verification of the separation of accounts, is currently being undertaken by an independent examiner, and reports should soon be available.

“The delay in having two suppliers for groundhandling provision of fuel and oil airside, has been caused by a dispute between the two successful bidders on the fee to be charged by the incumbent user for the use of the storage and fuel supply facilities, which are also managed by the incumbent user. This issue is currently the subject of a legal dispute between the two selected bidders,” the government said.

It added that at no point had an airport user been prevented from having an effective choice between at least two suppliers of groundhandling services.

In a reaction to the EU's warning on noise pollution, the government said that last March 30, Malta informed the Commission that a contract for consultancy and field surveys needed to implement the provisions of the EU Noise Directive had been awarded. The contract implementation had since commenced and it was intended to make Malta fully compliant with the obligations under the directive by the second quarter of 2011.

Malta will reply to the Commission’s reasoned opinion within the stipulated deadline.