Freeport, Fortina among land concession resolutions to be tabled by Lands Minister

Malta Freeport will give up its right to install cranes on the quay closest to residents as part of a deal that will see government part-finance a planned terminal expansion.

The arrangement, which will have to be approved by parliament, will see government finance half the cost of infrastructural works to ‘square off’ the outermost terminal.

It is one of four resolutions Lands Minister Silvio Schembri will table in parliament by which public land will either be transferred on concession to private companies or have existing lease agreements amended.

Lands Minister Silvio Schembri says the parliamentary resolutions will enable the four investments to move forward and create new jobs

The resolutions concern the Malta Freeport, the site that houses the former Edible Oil Company in Marsa, a road that cuts the SMW Cortis site in Żebbuġ, and the Fortina Lido in Sliema.

“The four projects contemplated for all these sites amount to an investment of €173 million by the private sector and will create more than 441 new jobs, which is why government is supporting their plans,” Schembri said.

Freeport funding gap

The Freeport obtained planning permits to expand the outermost Terminal 2 by reclaiming 30,000sq.m of land from the sea.

The project is expected to cost €103.8 million with €55 million being the infrastructural works to reclaim the land.

Schembri said the hefty investment will allow the Freeport to attract more ships that are longer than 400m but the company was unable to take on all the expense.

Government obtained state aid clearance to finance half the cost of the infrastructural works by giving the Freeport a discount over the next seven years on its annual concession fee.

But in turn, the government has asked for changes to the Freeport’s lease agreement.

The new conditions will see Freeport Terminals renounce its right to install quay cranes on West Quay Terminal 1, which is the innermost quay closest to residents. Another condition will impose a ban on roll-on roll-off (ships that carry trucks and trailers) activity during night time.

The company will also bind itself to contribute a further €300,000 as corporate social responsibility towards the Birżebbuġa community.

“The government is supporting this project because the Freeport is a crucial cog in the economy and the planned expansion will create 165 new jobs,” Schembri said, adding government took the opportunity to enforce contractual changes that mitigate the impact of the Freeport’s operations on nearby residents.

Edible Oil site

Another resolution concerns changes to the lease conditions governing the site where the former Edible Oil factory stood in Marsa.

The original lease agreement granted in 1964 for 99 years stipulated that part of the site had to be used for a chicken farm and 220sq.m had to retained as a marshalling area for trucks.

The site owners have a building permit to develop a €50 million commercial and industrial project on the 44,000sq.m site. They requested the two conditions be removed from their concession agreement.

Schembri said government accepted the request and following an independent valuation carried out by three architects the company will pay a one-off sum of €3 million.

SMW Cortis site

The Żebbuġ site owners, Central Business Centre Ltd, already have a permit to build a Lidl supermarket on the land that formerly hosted a woodworks factory. However, a disused public road cuts through the private land.

Government has agreed to grant the company a concession to utilise the public road, which covers 1,400sq.m, for 65 years against a consideration of €39,000 per annum. The condition tied to the lease will be that the road be utilised as an internal access road.

The windmill on site will remain government property and a buffer zone around it will be secured.

Fortina lido

The Fortina lido development will take up more land from the sea

The Fortina Group already has a planning permit to expand its lido by reclaiming 504sq.m from the sea. The lido will use 356sq.m of the reclaimed land, while the rest will be used to create a foreshore accessible to the public.

The land on which the existing lido was built had been granted to Fortel Services on concession in 1991.

Government has agreed to grant the company the additional reclaimed land that it will use for the lido expansion against an increase of €114,468 per year for 65 years. The resolution will also allow the company to put up two temporary pontoons during the summer months.

Schembri said all valuations were carried out by three independent architects nominated by the Lands Authority.

The resolutions will be debated in parliament’s Audit Committee, which is scheduled to meet on 15 February.