The Cospicua super yacht facility has been handed over to Italian company Palumbo under a 30-year concession agreement with the government.

Palumbo, which had already acquired the facilities of the Malta Shipyards, will pay over €29 million. This is made up of a purchase agreement of €7.5 million and rentals of €500,000 revisable by 15 per cent every five years. On a net present value basis these funds amount to €14.4 million when discounted at nine per cent per annum.

Palumbo has also committed itself to an investment of €3.6 million in the first five years, the Finance Ministry said.

The tendering process started in July and two bids were submitted by the December deadline. Palumbo Malta Superyachts Ltd was declared the preferred bidder. Negotiations started in January and were successfully concluded on March 14, the ministry said.

The agreement was due to be signed and announced in a press conference yesterday morning but was cancelled just 30 minutes ahead of time. A ministry spokesman a number of last-minute clarifications of the agreement had taken longer than expected. The press conference will be rescheduled.

In a statement, Finance Minister Tonio Fenech said the agreement would further strengthen the development of the yachting industry in Malta.

Over the past years and particularly since EU membership, Malta had become an important location for the private and super yacht industry, he said.

The company took over the shipyards on a 30-year lease in June and is expected to invest about €300 million in the facilities. It will pay the government €90 million over the span of the lease.