A fresh decision on the privatisation process of the Malta Film Studios in Rinella, will be made because a first attempt attracted no formal bids, the Times of Malta is informed.
Although five companies had originally expressed interest in running the film studios, none moved on to submit a proposal when the process entered its second and most crucial stage.
The call for expressions of interest for the construction, redevelopment, maintenance and operation of the film facilities had been made by the Tourism Ministry.
Former tourism minister Edward Zammit Lewis had described the interest by Golden Zephyr, of the United States, two Italian companies – Island Productions and Sefat Spa – and by Pinewood and Mediante, both from Britain, as very encouraging and a clear sign of trust in Malta’s film industry.
There is potential for a better outcome than what was achieved in the RFP process
However, when the formal request for proposals was launched, the privatisation process hit a snag because no concrete bids were made.
“The government believes there is potential for a better outcome than what was achieved in the RFP process, which concluded without any bid meeting the set technical requirements”, a Tourism Ministry spokesman said.
“The government is evaluating all options available and, until a final decision is made, the studios are being run by the Film Commission,” he added.
The new Tourism Minister, Konrad Mizzi, would now have to decide on the way forward, industry sources said.
Dr Mizzi, who is also politically responsible for Air Malta and private public partnerships, announced a change in the government’s strategy vis-à-vis the national air carrier soon after taking his oath of office.
The airline will go through a restructuring process before proceeding to seek a strategic partner.
Future plans for Malta Film Studios have yet to be announced.
Built in the 1970s, the facilities returned to the government only in 2014 after a nine-year-long legal battle over unpaid rent which had left the Land Department out of pocket by €1.4 million.
A private company owned by entrepreneur Jost Merten had been given a 65-year concession to run the facilities in 1995. Over the years, the company accumulated massive debts and repeatedly failed to pay its dues to the government according to the concession agreement.
Major productions were filmed at the Rinella water tank, including Raise the Titanic, Christopher Columbus, U-571, Troy and most recently Pirate Pete and the sea monster.
Following a court decision three years ago, the government had said the property would be turned into a “city for the film industry”, offering all necessary service. Plans were later changed and a decision was made to privatise the facilities.