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€12.6 million loan from BOV to start works on Renzo Piano's City Gate project
Despite a vague allusion in last November’s budget speech, the National Investment Fund promised more than a year ago has failed to materialise, prompting the government-owned Grand Harbour Regeneration Corportaion (GCRC) to take out a €12.6 million loan from Bank of Valletta to finance the demolition and excavation of Renzo Piano’s Valletta City Gate project.
18 May 2011, 12:00am
Karl Stagno-Navarra
Karl Stagno-Navarra
2 min read
A confirmation of the loan was obtained by infrastructure minister Austin Gatt in replies to MaltaToday.
While it remains unknown what guarantees were offered to secure the multi-million loan granted by BOV to GCRC - which is run by government’s investment arm Mimcol – a senior government spokesman said that the decision was taken in the wake of a serious delay in the setting up of the National Investment Fund.
Austin Gatt’s ministry shifted the buck to the finance ministry that is responsible for the setting up of the fund for replies.
The fund was originally intended to raise revenue through the sale or lease of government properties, so that the Renzo Piano project – a controversial initiative which will see a new entrance to Valletta, a new House of Representatives on Freedom Square, and the Opera House ruins converted into an open-air theatre – “would not be a burden on the taxpayer”.
“Preparatory work is being carried out to operationalise this budgetary measure,” a spokesperson for the Finance Ministry had told MaltaToday more than a year ago..
The City Gate project has meanwhile begun in earnest, with the demolition of City Gate and the surrounding arcade, the excavation of Freedom Square, the relocation of shops and offices.
An estimated €40 million has already been paid up in advance over the project, while the Finance Ministry still leaves questions unanswered regarding the source of the funding.
Out of the €12.6 million loaned by BOV, the consortium is now left with only €2.4 million left to work with as €10.2 million have already been drawn out to pay contractors involved in the ongoing works.
Speaking during a visit to the construction site where works are ongoing on the demolition of City Gate, Gonzi expressed satisfaction that works are finally underway and that Valletta would be soon having a gateway suited for “modern times”.
He said this project would be “an open invitation to all to enter Valletta, Malta’s prestigious capital city”.
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