The government has received satisfactory bids for the ship repair facilities of the Malta Shipyards and Manoel Island Yacht Yards but the privatisation process of the superyachts facility and the shipbuilding site had to be stopped, Finance Minister Tonio Fenech said at a press conference yesterday afternoon.

An offer of e67.8 million was submitted by Italian company Palumbo Spa for a 30- year concession of the ship repair facility while e12.4 million were offered for the Yacht yards by the Manoel Island Yacht Yard Consortium. The Privatisation Unit is managing the shipyards’ privatisation.

A final deal with the preferred bidders has not been reached yet but a conclusion is expected in the coming weeks after the legal issues are trashed. The second part of the process will include discussions with the General Workers Union regarding transfer of business details concerning those employees who did not take up the government’s early retirement schemes.

Regarding the financial situation of bidder Palumbo Spa, the minister said it is considered as a success story and it has vast experience in running two small shipyards in Italy. The bidder has also growth potential and considers the purchasing of the shipyards as added value and not competition.

He added that the shipyard’s price was satisfactory considering that the company lost e20 million annually. Although the government had received five offers for the super yachts and ship building facilities none satisfied the government’s expectations and although the government restarted the bidding process there were no improvements in the financial offer.

Mr Fenech said that a more suitable offer would be better for the national economic interest especially when considering the maximised potential of the property. He added that the shipbuilding facility is the largest among the four and has a strategic position. Committing it to a 30-year contract for an unsatisfactory price is not viable. “We need to think out of the box to develop a better strategy for it,” said Mr Fenech.

The government believes that the four components of the Malta Shipyards should be sold to function as maritime-related activities because many smaller enterprises depend on sub-contracting of such activities.

On the company’s deficit, the minister said that the government has absorbed this but the exchange will be a positive contribution to the country’s finances, as it will cover the costs of the early retirement schemes. He attributed the government’s 2008 deficit of 4.8 per cent to the retirement schemes.

The super yachts facility will continue functioning as it is temporarily, said Mr Fenech adding that it will be sold when a better offer is made.

The call for the press conference was issued at short notice, just an hour before it was held. The Minister explained that the press call was issued some time after the bidders were informed of the government’s decisions. It would not have made sense to inform the media before the bidders, he said.