New agency to implement €700 million open space pledge

The Finance Minister has announced the setting up of a new agency aimed at implementing the Labour Party’s pledge to allocate €700 million to urban greening projects over seven years.

One of the first projects, a collaboration with Wasteserv Malta, will be the conversion of the Sant Antnin recycling plant in Marsaskala into a family park. The first phase of the urban greening project also foresees projects in Bormla, Birżebbuġa, Ħamrun, Marsa, Siġġiewi and San Ġwann.

The agency will also offer the private sector an opportunity to invest in these projects through public private partnerships.

Afforestation projects, already announced in last year’s budget - including that in Zonqor, are reiterated as is the proposed extension of the Ta’ Qali park in which a further €13 million will be invested in the next year.

The government also intends to issue concessions for the operation and development of underground car parks on land already occupied by surface car parks with the aim of converting the overlying area into open spaces.

More studies on land reclamation

The budget also speaks of land reclamation projects and makes reference to meetings with experts over the past months, exploring “projects” which “improve the environment” and bring “added value” to the country. But in an indication that the government is proceeding with caution, the next step will consist of more studies to determine the economic and financial feasibility and the social and environmental impact of these projects.

Public private partnerships are included in the Budget, intended to “give a new life” to the Chalet in Sliema, the Evans Buildings and the former fish market in Valletta for which the government has already approved a call for expression of interests. The budget hints that the government is also exploring other sites.

Private investment in offshore renewables

Private investment in offshore renewable energy is also implied in the budget. This follows a market consultation carried out in the past year with regards to private concessions in Malta’s exclusive economic zone.

The budget also foresees the continuation of the planning process for the development of a second interconnector - a project which will require a total investment of €160 million. This will not only increase the provision of energy but also give the country a greater flexibility in its energy mix. Greater investment in the energy grid aimed at improving the quality of service and ensuring that the distribution system can cope with increased provision from intermittent renewable sources was also announced.

Government will renew energy efficiency schemes for businesses and households including those for photovoltaic panels, batteries for the storage of renewable energy, heat pumps and solar water heaters.

1200 new charging stations

Work will continue on the installation of 1200 new charging points for electric cars, a measure announced in the last budget, increasing their number nearly fourfold from the current 340.

Previous schemes, consisting of interest free loans aimed at incentivising companies to switch to electric cars, will continue.

€50 million investment in Organic waste plant

During the next year the government will proceed with a €50 million investment in an organic processing plant which will convert white bag waste into energy and compost for the agricultural sector.

In a rare application of the polluter pays principle, the budget introduces the increase in landfill gate fees, which it had previously announced, a measure aimed at discouraging the landfilling of waste.

The budget also announces plans for a Skip Management Facility aimed at reducing landfilled waste by 47,000 tonnes.

Disappointingly, the budget is devoid of any measure aimed at addressing ground water extraction, however it does envisage a further increase of reverse osmosis production by another 20% over and above the 30% increase in the past years, thanks to a €12 million investment.