Part of the Marsa Shipbuilding site – most notably the drydock – may be given to Dutch shipbuilding firm Damen NV, accordingto sources.

This means the government will then be able to start negotiations with the preferred bidder for the rest of the site – two months later than originally anticipated.

The Dutch company was founded in 1969 and since then has delivered over 5,000 vessels. It also carries out repairs every year. It owns 35 yards worldwide in addition to numerous partner yards.

The company’s bid for a yard in Montenegro was recently rejected by that country’s privatisation unit – but it has lately been snapping up yards at a rapid rate.

The sources said that representatives from Damen have already been to Malta and Economy Minister Chris Cardona had also visited the shipyard.

The agreement would have to dovetail with the tender issued earlier this year by the government for the site.

Dr Cardona had said in early October that the announcement of the preferred bidder for the tender would be made within a few weeks. The announcement is now believed to be imminent. Negotiations would then focus on how to allow the preferred bidder to fulfil its projects – but without giving it “any more space than they actually need”.

The lawyers representing the entities that administer the site sent a letter last October to the companies which still operate there, asking them to vacate the premises by November 15.

The letter was sent by Sciberras and Lia on behalf of Ricasoli Tank Cleaning Ltd and Malta Government Investments Ltd. However, the notice seems to have been largely ignored with some operators taking the lack of announcement as a sign that there was no need to move yet.

In March, 28 consortiums showed interest in the site but only six went on to submit bids. Only one of those – from Ablecare Oilfield Services Group – was for the whole of the 175,000 sq.m. site, with a proposal to use it for the oil and gas industry. The other five were for parts of the site.

The Privatisation Unit identified four categories for bids: the oil and gas industry and logistics; ship repair, heavy industry, yachting and logistics; superyacht refit and repair facility and an offshore energy regional support base; and servicing of yachts, supply of hard-standing facilities and other services. In the case of the first three categories, the projects had to make full use of the site. Projects submitted under the fourth category could make use of plots within the area.

The oil and gas industry category was identified by the Privatisation Unit as one with the biggest potential for effective use of the site.