Enemalta eyes commercial development on Marsa land

The considerable parcel of land occupied by the decommissioned Marsa power station has been identified for future commercial development, according to a project development statement submitted to the Malta Environment and Planning Authority.

Enemalta plc, the partly-privatised corporation that now has Shanghai Electric Power among its shareholders, was granted the temporary emphyteusis on the Marsa land in August last year.

The energy company has not however revealed the price it is paying for the land, or the duration of the lease on the 32,000 square metres of land.

And a request for the public deed, made to the Government Property Department, whose notary should have provided it with no questions asked, was kicked to the Office of the Prime Minister.

Enemalta claims the price of the acquisition was set in 2012 when a Special Vehicle Fund was set up to restructure Enemalta’s debts and when the company was then still fully owned by the Maltese government.

The deed transferring the land to Enemalta was signed a few days before the publication of a legal notice that turned Enemalta into a public limited liability company last August. Had the law come into effect before the transfer, the government would not have been able to transfer the land just by a public deed.

Crucially, the legal notice exempted the lands transferred to Enemalta from customary rules that govern the disposal of public land, which can only be transferred to third parties by a parliamentary resolution or by public tender.

The law exempted any land owned by Enemalta plc or its successors, from the Disposal of Government Land Act (DGLA), meaning that such land transfers do not require any further authorisation in terms of the DGLA.

MaltaToday’s request for the deed transferring the land in Marsa from the government to Enemalta has not been acceded to by either Enemalta or the Government Property Department.

A spokesperson for Enemalta said the corporation “availed itself of the provisions of its agreement with Vault Finance Ltd to acquire the temporary emphyteusis for the Marsa Power Station site… The price [was] pre-established in the 2012 agreement with Vault Finance Ltd.”

Vault Finance is the SPV created by the previous administration to address Enemalta’s debts in 2012.

Future use of land 

A project development statement presented by Enemalta to MEPA states that “the closure of Marsa power station will create an area of at least 32,000m2 (excluding the area on top of Jesuit Hill) for possible alternative use and development for commercial activities.”

But according to Enemalta no decision has yet been taken on the use of the Marsa site once the existing electricity generation structures are dismantled. “The company is focusing on decommissioning and dismantling the power station. Consultations and concept of operation are currently underway.”

Only when the site is cleared will the company be in a position to assess its future use. “This evaluation will take into consideration various factors, including the position of the site within the Grand Harbour and all national policies and plans for this area. Public consultation will be held as applicable by law for similar developments.”

MEPA will be issuing a permit for the dismantlement and decommissioning of the Marsa power station on 2 April, a week before local elections take place in the locality. The date was moved a week forward from its original 9 April deadline.

The decommissioning can take place only following the issue of an Integrated Pollution Prevention Control (IPPC) permit, which will be issued at a later stage.