Legal Notice 292 of 2014 published in yesterday's edition of the Government Gazette, brings into effect the law passed in parliament in July on Enemalta’s future as a company, which now enables Enemalta to dispose of the Disposal of Government Land Act (DGLA) policy when it comes to the transfer of its land.

Article five of the Enemalta (Transfer of Assets, Rights, Liabilities and Obligations) Act of 2014 stipulates just that. The Nationalist Opposition had voted against the bill in parliament.

This newsroom is informed that Vault Finance, a Special Purpose Vehicle created by the previous administration, on Monday passed the Marsa Power Station’s land along with another large piece of land in Marsaxlokk to the Lands Department.

The meeting involved officials from the Lands Department and Enemalta and the signing was done in the presence of the Attorney General.

On Tuesday, the LN bringing into force the Act was published.

The back to back contract (those involved in the contract were requested to sign a confidentiality agreement) saw the Lands Department, in return, granting a 99-year emphyteusis to Enemalta for its Marsa power station land and a 25-year emphyteusis for the large piece of land in Marsaxlokk.

This ties in perfectly to the Legal Notice published which, as from now on, bars the Commissioner of Lands from intervening in anything to do with Enemalta’s land, meaning that a clause in the LN will enable Enemalta to avoid adopting the DGLA policy.

Before this law came into effect, adopting the DGLA policy meant that a tender would have to be issued for this to happen, or by means of a parliamentary resolution, but this new clause disposes of such a policy and introduces this new practice.

Specifically, the Act, Chapter 268 of the Laws of Malta requires special procedures and consents for transfers or grants of land by the government.

The SPV, Vault Finance Ltd, had been created as part of the restructuring process to address Enemalta's debts in 2012. This had been announced in parliament by then finance minister Tonio Fenech.

Mr Fenech had emphasised at the time that the SPV will help see Enemalta’s debts being paid off.

On 9 July 2012, the memorandum of association of Vault Finance had been tabled.

Monday’s contract was held at Auberge de Baviere which hosts the Lands Department.

 

What article five of the Act states

Notwithstanding the provisions of the Disposal of Government Land Act:

(a) the disposal of any land in favour of the Company in virtue of this Act shall be valid and shall have effect without the need of any further authorisation other than this article, and the

provisions of the Disposal of Government Land Act shall not apply to any disposal of any land by the Company or any of its successors in title (including any land transferred to the Company by virtue of this Act) to any person, and such disposals shall not require any further authorisation in terms of the Disposal of Government Land Act;

(b) the Minister may by order in the Gazette remove any restrictive conditions imposed by the Government on the

Corporation in any public deed by virtue of the application of article 3(1)(e) of the Disposal of Government Land Act in respect of the disposal of any land made by the Government in favour of the Corporation where such land is subsequently transferred to the Company by virtue of paragraph (a);

(c) the Government may make available any land used by the Corporation for the purpose of generation of electricity immediately prior to the coming in

to force of this article for use by the Company or to any other entity in which the Company has any shareholding, as subject to any conditions as the

Government may deem fit.