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Kurt Sansone
The various ideas for EU-funded projects being contemplated by the different ministries for the forthcoming 2007-2013 budget would cost EUR3 billion and that is overshooting Malta’s allocation by more than two billion.
The final selection of projects to be submitted for EU funding within government’s overall national development strategy is sure to leave a lot of ministers unhappy as grandiose visions will be sidelined for the more simple projects that are feasible within the strict parameters of EU funding. Malta was allocated EUR800 million from the EU budget, which will increase to one billion with the level of co-financing the Maltese government would be expected to fork out.
Parliamentary Secretary in the ministry of finance, Tonio Fenech, yesterday unveiled the next phase of the consultation process on the national strategic reference framework which is to serve as the guideline for spending the money to come Malta’s way from the EU over the next seven years.
Government hopes to have the final draft of the national framework concluded before the summer break and is adamant on having the first projects funded by the EU rolled out in January 2007.
The choice of the individual projects and the priorities attached to them will be made only after the national framework programme is approved by the EU.
Fenech yesterday said that in evaluating the projects, one of the criteria adopted by the selection committee would be the track record of the agency submitting the proposal in implementing previous EU-funded projects.
The draft policy identifies four strategic objectives for EU funding: sustaining a growing and knowledge-based, competitive economy; improving the quality of life through environment protection and urban regeneration; investing in human capital and addressing Gozo’s regional distinctiveness.
Fenech said that 10 per cent of all funds allocated to Malta will be utilised for projects targeted particularly for Gozo. Asked by MaltaToday whether government will take heed of the advice given by the Federation of Industry for funds to be primarily directed towards longer-term human resources development rather than infrastructural projects, Fenech said that government cannot but find a balance between the two.
“But in earmarking funds for research and development we also have to keep in mind the level of co-financing the private sector would be ready and capable of providing, given the EU only finances up to 80 per cent of a project’s cost,” Fenech said.
Given the advanced stage of the road programme, as of January 2007 EU funds will start to be channelled into developing sections of the road network forming part of the trans-European network, which links the Freeport with Gozo. But government is also hoping that by January next year industry would be able to start tapping into EU funds for dedicated projects.
As for the tendering process, so often hindered by what the parliamentary secretary termed as frivolous appeals, Fenech yesterday said government was contemplating tightening the rules to make it less attractive for contractors to appeal on frivolous matters.
“We intend making contractors liable for loss of funds if appeals are lodged on frivolous matters which risk putting EU funds for the particular project in jeopardy,” Fenech said.
Comments on the National Strategic Reference Framework can be sent to nsrf@gov.mt until 21 April.
ksansone@mediatoday.com.mt
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