Fair Trade Minister Jason Azzopardi on Monday explained the reasoning behind the valuation of 100 car parking slots at MCP in Floriana at €3.2 million, following a number of considerations laid down by the Government.

He was answering a parliamentary question by Nationalist MP Jesmond Mugliett.

The project to roof the car park and increase capacity by more than 400 parking slots, together with landscaping the resultant garden, would have cost the Government more than €5 million. The car park operator would be expected to maintain the garden in a good state for 94 years, which was estimated to cost more than €200,000 a year.

Dr Azzopardi said the Government’s leasing of the parking slots for administrative needs would free up more space in Valletta. Besides, the value of €3.2 million was considered fair on the basis of two simple calculations, even without technical advice.

If one divided €3.2 million by 94 (the term of emphyteusis) and then by 100 one would get an annual figure of €340.42, which would not change throughout the 94 years. This would mean less then €1 a day for each parking slot.

When one considered that the minimum rate of parking today was €2.30 a day (€600 a year), one could only deduce that the €3.2 million to be paid up in equal rates over 10 years was very advantageous.

Dr Azzopardi went on that multiplying €200,000 a year for the garden’s maintenance for 94 years would result in €19 million. The Government would not be paying anything for this.

These calculations went to show that the 100 parking spaces would constitute a bonus, rather than a burden.