Tonio Fenech discusses Air Malta and Bugibba aquarium with Joaquin Almunia

The meeting was held to discuss a number of issues including Air Malta, the Commission’s State aid investigation into the modification of the boilers at the Delimara power station and the upgrade of the tourism zones in the Qawra, Bugibba and St. Paul’s Bay area.

On Air Malta, Minister Fenech informed the Vice President Almunia of the ongoing discussions with the stakeholders, in particular, the trade unions.

“The restructuring plan is due to be forwarded to the Commission in the coming weeks. The Commission guidelines require that the restructuring plan includes the divestment of loss making activities, including the elimination of loss making routes, and this will mean that the number of employees will need to be reduced. Early retirement schemes are currently being drawn up,” Fenech said.

As regards the ongoing State aid investigation into the modification of the boilers at the Delimara power station, the Commissioner informed the minister of his intention to bring this investigation to a conclusion in the coming weeks.

Another case which was discussed was that related to the embellishment works which will occur in the tourism zones in Qawra, Bugibba and St Paul’s bay area and the possibility of elements of this embellishment – in particular the proposed Aquarium – being considered as benefiting from incompatible State aid.

The Commission has given the green light for this project and works on this tourism zone upgrade – which will include the construction of a public aquarium in Qawra – are expected to commence in the coming weeks.

The tender for the development of an marine aquarium park in Qawra on the rocky coast next to Fra Ben restaurant is still awaiting clearance from the European Commission, after Ebcon Global JV was chosen as the preferred bidder.

The aquarium will be home to marine animals and will also include sharks. The aquarium will go a long way to embellish the tourist zone around Fra Ben.

The tender stipulates that the private contractor will be paid a maximum of €8,850,000 (including VAT) with 85% being funded by the EU and 15% by the government, for the design, construction and operation of the aquarium for a number of years.

When asked whether the government funding for the project conformed to EU legislation on State, the then government spokesperson replied that although the local authorities do not think that this arrangement constitutes State aid, “it was decided that, prior to the signing of the contract, the Commission should be consulted on this issue.”

The Malta Tourism Authority is leading an EU-funded project that incorporates upgrading works at Pembroke, St Paul’s Bay and Qawra. The aquarium project is one component within this overall €14 million investment in the product.

Ebcon Group of Companies includes MFF Ltd and Melita Blu Sea Limited. MFF Ltd was established in 1993 with the aim of producing 500 metric tonnes of Gilthead Sea Bream and European Sea Bass for export annually. Melita Blu Sea Ltd was established to assist in the Bluefin Tuna operations carried out by MFF Ltd.

The   Malta Tourism Authority (MTA) has stepped in to finance the marine aquarium park in Qawra in 2007 because it could not attract private investors to develop it.