A €53.7 million social housing project financed by loans from the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB) was launched today by Finance Minister Edward Scicluna.

A total of 16 sites owned by the Housing Authority have been identified to construct over 600 social housing units. 

The 680 homes will include one, two and three bedroom apartments. 

Finance Minister Edward Scicluna said this was part of the government’s plan to improve the country’s infrastructure to better reflect its economic growth.

The project is being carried out between the government and Malita Investments, which is part-owned by the private sector, with loans to be repaid over a 25-year period. 

Asked to explain why the government had to take out a loan for such a project, Prof. Scicluna said a choice had to be made to find the most efficient means of financing which met the government’s targets.

He said it made more sense to share such a project with the private sector.

Malita chairman Kenneth Farrugia explained that the project was not a government one per se, as Malita had private investors.

Mr Farrugia said a mix of isolated bare land, as well as land near existing developments, would be used for the project.

He said the EIB/CEB loans would be given at market rates.

Social Solidarity Minister Michael Falzon said no ODZ land would be used for the project.

Dr Falzon said numerous sites around Malta had already been identified for the project, and most sites already had a permit in hand.

The sites are in Attard, Luqa, Siġġiewi, Qrendi, Birkirkara, Msida, Żurrieq, Kirkop, Cospicua, Naxxar and Żebbuġ.