The Privatisation Unit has dispatched over 20 sets of documents relating to the concession for Marsa Shipbuilding, just two weeks after the international Call for Expressions of Interest was issued.

Investment Minister Chris Cardona said that there had been hundreds of enquiries, describing the level of interest as “incredible”.

The Call for Expression of Interest was drawn up by the recently-resigned head of the Privatisation Unit, Emanuel Ellul, who had also drawn up the previous one during the 2008 privatisation. It closes on June 28, and following a period for clarifications, submissions for the 175,000-square-metre site must be made by August 5.

The Government is proposing to grant a temporary emphyteusis of 45 years, negotiable for a longer period depending on the investment proposed, with an up-front premium and an annual ground rent. The eventual concession would require parliamentary approval.

Dr Cardona said that this was the first time that there was an international Call For Expression of Interest for the site on this scale, although there have been other attempts to find an investor for the site (see box).

“This is the first time that we are marketing it using foreign media like Lloyds List, The Economist and Euronews. The initial feedback is that there is solid and robust interest. We will be in a situation to respond to all the queries so that by August we will be able to issue a proper Request for Proposals,” he said.

The minister was adamant that this latest attempt to use this unique site would be successful – with one of the key elements that differentiates it from previous failed attempts being that the Government is all in favour of splitting the site into smaller components, which could create a more diversified cluster, in line with his vision of an international maritime hub, rather than having just one operator using it for a more limited range of operations.

“We will either go for a whole development by a single entrepreneur or a consortium – or we will segment. We are willing to consider segmenting the yard if this will result in a better deal for the Government, and this is expressly mentioned in the document. We need to make sure that there are solid deliverables... Our job is to make sure that we get the best revenue and the best value-added for the economy,” he said.

In fact, although the possibility of using it for trans-shipment is left open in the document, the minister is clearly underimpressed by the idea of using the area as a storage area for containers or cars.

“We want to activate the Maltese economy by launching projects that will help to develop this site and to diversity the potential of this site. Limiting it to just trans-shipment would not allow it to reach its full value-added potential. We want to have as many ancillary services as we can possibly have,” he said.

The Government will concede the site tale quale, including the dock which requires considerable refurbishment and maintenance. It is retaining the right to the roof of the existing shed, which it sees as the perfect location for solar panels. It has made it clear that no government money will be injected into the project and that all the investment has to come from the private sector.

However, the Government is hoping that this project will not be a mere relocation of existing businesses to Marsa: Dr Cardona said curtly: “We are not talking about how many people will be employed!”, a reference to claims about the thousands of jobs that Smart City would create.

When asked how this concession would dovetail with the plans for the rest of Grand Harbour, particularly with overlaps like the marina planned for the Marsa Menqa, Dr Cardona was optimistic that these would complement eachother. “The potential is quite limitless. We are geographically in a position to entertain as many ship owners and superyacht owners as possible. What we really need is a general infrastructure which can provide for and maximise our potential. So no sites would be excluded...” he said.

Third – or fourth – time lucky?

This is not the first time that the site has been up for grabs. Dubai Maritime City was very keen to take over the site some years ago, but sources said that they wanted the project to be awarded by direct order, something that the Government of the day was uneasy with. Global giant Thyssen was also interested at one stage.

The site was also one of the four units put up for sale when Malta Shipyards was privatised in 2008. However, the bids received for it were well below what the Government had in mind and the project was shelved.

Media reports at the time had indicated that the Government was hoping to get an upfront payment of €15 million and €43.7 million in rent over the 30-year period, albeit for a smaller footprint than that now being offered.

In November 2012, the Nationalist Government had announced that it would transform the site into a maritime park but made little progress before the elections.

Malta Shipbuilding only made a profit twice in 22 years, in its first years of operation: 1982 (€9,287) and 1983 (€5,693).