Page 704 - ePaper

SPECIAL TASK FORCE ON DEVELOPING INVESTMENT PROJECT
PIPELINE IN THE EU- MALTA PROJECT LIST

their dues in kind and apply such acquired real estate for purpose of

executing some elements of this project.

Solutions:

This project is capable of being financed on a PPP framework, provided:

 A Special Purpose Vehicle (SPV) is created to undertake and

finance this project.
 EU – EIB will co-finance with equity and mezzanine finance.

 Government will co-finance through provision of land/ buildings
for locating elements of the Projects and by assisting in

procurement of all necessary regulatory and environmental
permits and approvals.

 Private sector will invest enough to bring government
/private/EU- EIB equity/mezzanine funding up to 50% of the

project costs.
 Any equity shortfall could be offered to Development Banks,

Private Equity Funds and Sovereign Wealth Funds.
 The remaining 50% end project financing will be raised through a

mix of traditional financing sources including long term loans from
Maltese banks which are very liquid.

 A long term agreement is entered into between the SPV and
government whereby government will channel to the SPV the

greater part of the savings made through efficiencies generated
by the new system on an agreed performance based budgeting

basis.

Government payments to the SPV could be financed by costs saved from

mainstream budget to house such PWD in totally inadequate old people’s
homes.

Time Frames:

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