Major works carried out using EU funds include the south sewage treatment plant, which cost over €67 million (top), and the building of the oncology hospital (bottom). Photos: Chris Sant Fournier

More than half the capital investment in the local economy last year came from EU funds.

Malta utilised €120 million in EU funding, or 51 per cent of all the capital investment made during the year, according to a report from the Maltese EU funds management agencies.

The report highlights the various mega-projects concluded using EU money in areas ranging from public infrastructure, health and education to research and development.

Malta was allocated €850 million of EU funds for the 2007-2013 period, the first financial cycle since Malta joined the EU in 2004.

According to EU rules, the country has until the end of this year to use up all the funds eligible for this period.

Work on some of the large infrastructural projects is currently in full swing as the authorities try hard to avoid losing any funds.

All these projects have to come to an end by December to be eligible for the max-imum funds utilisation.

Among the major ongoing works is the rebuilding of the Coast Road, a project expected to cost some €53 million and which was originally planned to be concluded by last May. The deadline has now been pushed to November after the discovery of archeological sites that need to be preserved.

Malta utilised €120 million in EU funding, or 51 per cent of all the capital investment made during the year

In Gozo, major works are under way on the rehabilitation of the Cittadella, in Victoria, while work is advanced on the completion of the first ever interactive science centre in Bighi.

The report highlights major works carried out using EU funds over the past seven years, including the upgrading of a number of arterial roads and the building of the oncology hospital.

A large allocation of EU funds was made available to environmental projects including the building of the south sewage treatment plant, which cost over €67 million, the upgrading of the Sant Antnin recycling plant in Marsacala and the building of a new recycling facility in Magħtab which is nearing completion.

Preparatory work on the new financial cycle, which covers 2014 to 2020, is already at an advanced stage.

In 2012, Malta managed to negotiate more than €1 billion of fresh EU funds which are expected to continue to transform the island’s economy.

In the majority of cases, the EU funds 85 per cent of projects.

The rest is allocated through national funds.

ivan.camilleri@timesofmalta.com