The €27 million factory which the government is building for Crane Currency in Ħal-Far has been given a fast-track permit by the Planning Authority, the Times of Malta is informed.
The development permit for the state-of-the art factory, which is to start operating next year, was obtained through a Development Notification Order (DNO), usually used for small developments like minor internal alterations.
This newspaper is informed that Malta Industrial Parks – the government’s agency responsible for industrial estates – filed its DNO application on November 4 – one day after Malta Enterprise had given its go ahead for the financing of the project.
The Planning Authority gave the green light just 16 days later.
A full development permit is not necessary, as the factory will be built through a Development Notification Order
Asked whether ongoing works at Ħal-Far were covered with a full development permit, a spokesman for the Planning Authority said this was not necessary as the factory would be built through a DNO.
“On site there is an approved permit (DNO 1467/16) for the construction of a manufacturing factory,” a spokesman for the authority said.
READ: Government to guarantee Crane Currency loans
The DNO application was filed by Damian Whitehead on behalf of the MIP, while the factory designs were completed by Bezzina & Cole Architects and Engineers.
Despite the total built area of the new plant being in excess of 14,000 square metres – the size of two full football grounds – the permit was issued through a DNO, used, according to the authority, for “a range of generally minor developments”.
Sources close to the Planning Authority said that although the size of the project usually necessitated a full development permit, the factory was to be built in a designated area which was exempt from full-development permits.
The same fast-track approach was also used for other factories in the same area, the sources said.
The Crane Currency investment, dubbed by the Prime Minister to be the first of its kind in almost 30 years, will put a substantial strain on public coffers, as, according to confidential documents, Malta Enterprise will have an exposure of some €81 million of the total investment.
The government has agreed to build the factory for the money-printing facility at a cost of €27 million and to issue a state guarantee of €54 million so the private company may take a Bank of Valletta loan of €72 million to buy machinery and equipment.
The government has also agreed to subsidise the interest rates on the loan to be given to Crane Currency. The announcement of the new investment was made by Prime Minister Joseph Muscat in September, two months prior to the discussion and go-ahead for the financial assistance by Malta Enterprise.
Questions were immediately raised regarding the potential conflict of interest that the Prime Minister’s chief of staff, Keith Schembri, could have in the deal, since he is also the owner of Kasco Trading, local agents for paper, raw materials and printing machines. The Prime Minister singled out Mr Schembri as “the catalyst” behind the deal.
When later pressed on the matter, Dr Muscat said that his chief of staff had not been directly involved in the negotiations but made sure “that things [got] done”.
The new company is expected to employ 300 workers by 2021.
ivan.camilleri@timesofmalta.com