The government has handed the management of the Msida and Ta Xbiex yacht marinas to Creek Development plc.

The company was formed by 417 boat owners who are currently using the marinas, which together have about 700 berths.

It has promised to spend €5 million on upgrading within two years.

The concession fee was of just under €4m and the company will also pay annual rent.

Finance Minister Tonio Fenech said there were three bids for the Msida marina and five for the Ta’ Xbiex marina. Creek Development won both.

He said Transport Malta was moving away from being an operator so that the private sector could invest in upgrading the facilities.

Transport Minister Austin Gatt said that the only marina which was still managed by TM was the one at Gzira Gardens which had not been privatised yet because of a pending Mepa permit application to add a pontoon and create an additional 40 berthing spaces.

Once the permit was in hand, TM will embark on the privatisation process.

He said the government had applied for a small breakwater near the Excelsior Hotel for a marina to provide between 300 and 350 berthing spaces. The environment impact assessment is currently being conducted. TM is also looking into seasonal berths at Sliema.

Dr Gatt said the Maritime Authority would next year start organising free moorings and establish mooring farms to provide guest mooring for summer.

The concession granted today is for 25 years.