Page 690 - ePaper

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

 Technical studies to confirm technical viability and budget costs
 Regulatory and environmental issues

 Financing

Solutions:

The success of the tourist industry in Malta is almost entirely based on

private sector initiatives and investment. Tourist operations in Gozo are
all private sector initiatives that have been enabled by Government

creating the right environment for investment. Only the ferry crossing
service is publicly owned given its strategic importance. The airport

could generate its own revenues to generate its commercial success if it
really makes a difference to up-grade and exploit Gozo’s potential as a

distinct tourist destination where up-market tourists stay rather than
just visit.

Malta government believes that given Gozo’s untapped tourist potential
this project that can be successfully financed on a PPP framework

provided:

 Government will co-finance the investment by conducting all

technical, environmental and regulatory studies.
 EU – EIB will co-finance with equity and mezzanine finance

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

project costs.
 Special incentives will be given to Gozo tourist operator to invest

equity in the project so as to leverage the potential of their own
existing investments.

 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

banks and bonds raised on the Malta capital markets which are
very liquid.

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