Work on a multi-million euro project to further develop the Safi Aviation Park has been delayed, and some EU funding risks being lost as a result, the Times of Malta is informed.

The park, which started construction in 2014, was projected to be completed by March of last year. However, during a visit by Prime Minister Joseph Muscat earlier this week, it was evident that the facility was far from ready and that a lot of work still has to be done.

Dr Muscat made no mention of the delays when addressing journalists, but a spokesman for government agency Malta Industrial Parks (MIP) confirmed that the project would not be ready before this July – more than a year behind schedule.

Since the project is partly funded by the EU, the money had to be utilised by the end of last year, according to the the stringent rules in place. This means it is possible part of the funding will be lost and Malta would have to finance the project from other sources.

If there is unused funding due to non-performance, there are penalty clauses which will come into force

Asked whether this could happen, the MIP spokesman was non-committal, although he admitted that losing EU funding for the project was a possibility.

However, he said that were that to occur, the government would demand compensation from the private contractors handling the project.

The spokesman said MIP was doing its best to try to ensure that no EU funds were lost. “Should there be some funding that will not be utilised due to the non-performance to the required time frames by private contractors, there are penalty clauses which will come into force.”

The spokesman said some of the private contractors had not performed according to the expected targets. Furthermore, archaeological remains found during the project complicated matters.

The project, expected to cost about €4 million, consists of a maintenance, repair and overhaul facility (MRO) to cater for aircraft. It involves the construction of three hangars, aprons and a maintenance access route, all in accordance with international aviation standards.

The three hangars will target aviation maintenance operators that specialise in the business aviation sector.

The Safi Aviation Park was originally established in 2010 and forms part of the boundaries of the Malta International Airport.

During his visit, Prime Minister Muscat said that, apart from the government investment, private enterprises already established in the area, such as Medavia and SR Techniques, were also investing in new facilities to expandtheir business.

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