Italian company Palumbo SpA has been chosen as the preferred bidder for the super yacht facility at Cospicua, the Finance Ministry said yesterday.

The company, which also won the privatisation tender for the shipyards, was selected yesterday when the financial offers were opened, the ministry said.

The adjudicating process started with two bidders that both satisfied the minimum required technical standards, the ministry said.

The successful company offered €14.4 million, calculated on the basis of the upfront payment and net present value of rent payable over 30 years. The minimum upfront payment required by the request for proposals was €6 million and a minimum rent of € 475,000 per annum, increasing by 15 per cent every five years.

The preferred bidder’s offer is composed of an upfront payment of €7.5 million and a rent of €500,000 per annum going up by 15 per cent every five years.

The company took over the shipyards in June and is expected to invest about €300 million into the facilities, including €23.5 million to be spent in the first five years of operation.

Parliament approved the transfer of the facility to Palumbo on a 30-year lease. The company will pay the government €90 million over the span of the lease.