Malta has already allocated 91 per cent of its EU funds granted for the 2007-2013 budgetary period, obtaining one of the best absorption rates among the 27 member states.
An internal EU report seen by The Sunday Times shows that until the end of last month, Malta had the fourth best record in fund allocation, following Cyprus, Ireland and Belgium.
Despite having far less experience and resources, EU officials told this newspaper Malta “has managed to learn the ropes very quickly” and is “doing an outstanding job” at administering EU funds.
According to the report, Malta has allocated €730 million of the €840 million under the Cohesion Policy and most of the €15 million given under the European Territorial Cooperation Programmes aimed at joint projects with Sicily.
The island is expected to allocate the remaining €110 million by the end of 2012 and the Office of the Prime Minister has already indicated this.
“Two massive projects submitted by Malta and absorbing some €70 million of the remaining funds are expected to be given the green light by the Commission shortly,” an EU official said, without divulging more details.
Malta negotiated €855 million of EU funds for the 2007-2013 period as the island qualified for the highest amount possible under the EU’s cohesion policy.
Negotiators are currently discussing the next multi-annual financial framework for the 2014-2020 period with the Commission and the other member states, hoping to get another good allocation.
€855 million
– the total EU funds available for the 2007-2013 period
However, Malta has become richer compared with the EU’s average GDP, so may not qualify for a high amount this time round.
The island is making a strong case that it still deserves to be given substantial funds to continue developing its economy, but this has to be accepted by the other member states.
So far, Malta has allocated EU funds to 160 different projects, which are changing the landscape and radically upgrading its infrastructure.
Some €60 million is being used to rebuild major road arteries in Malta and Gozo, while around €35 million is being used to restore most of the island’s majestic bastions.
Other large projects include building sewage treatment plants (€68 million), promoting renewable energy sources(€17 million), setting up a Life-Sciences Centre (€18 million) by Malta Enterprise, restoring Fort St Elmo (€13 million) and rehabilitating landfills (€26 million).
Malta has until the end of 2015 to complete all projects under the 2007-2013 EU budget allocation.