The budget presents a capital investment spending of around e430m, of which e180m will be from European Union funds.
• e43.7m investment on road infrastructure
• e14m for road maintenance
• Public Private Partnership for road construction
• Various roads in Gozo will be reconstructed
• Low pollution commercial vehicles exempt from registration tax
• e60m ICT investment
• Final withholding tax choice extended to 2011
• Mepa directed to identify buildings in village cores for tourism/office use
• Commuted Parking Payment Scheme fund utilised to create vehicle parking facilities
New arterial and
residential roads
The investment in the road infrastructure will be of e43.7m and includes the construction of arterial roads in various localities. The road leading to Marsascala will be completed next year while work will start on Valletta Road, Zurrieq, and the road which leads from Zabbar to SmartCity. Works will be undertaken to improve the road leading to Marfa, Menqa road leading to the cargo terminal in Marsa, Mgarr Road, Gozo, and European Council Road.
A further e14m will be invested on road maintenance in various towns and villages.
Public Private Partnership for road construction
Local councils will be cooperating on tenders issued for road construction and maintenance and contractors will be obliged to maintain the roads for a number of years and paid during that operative time. One million euro a year will be allocated under the Local Council Special Funds and participating councils will fund half of the expenditure. The fund reserved for this scheme amounts to e2m while the whole project is estimated to cost e8m. Various roads in Gozo will be reconstructed under this model at a project cost of e4m. Road infrastructure expenditure during 2010 will amount to e53.7m.
Public transport reform
Government is reforming public transport to mitigate the excessive dependency on private cars and the environmental damage this is causing. Government will be liable to keep granting a subsidy to the new operator but the subsidy must be accompanied by the profit motive in order that the operator encourages more people to use public transport.
The new Authority responsible for public transport will invest e9m on new bus terminals in Valletta, Rabat Gozo, and Bugibba’s tourist centre and 10 other localities will be improved where a large number of route services will be concentrated. Blata l-Bajda’s Park and Ride will be extended and two others will be developed in Marsa and Pembroke.
Commercial vehicle
registration tax reform
A reform of the registration tax and licensing of commercial vehicles is being proposed to reward the least polluters. The new system will promote Euro 5 and Euro 4 commercial vehicles which are regarded as the least polluting and will attract no registration tax.
Euro 3 and lower vehicles will have a registration tax related to weight instead of value. There could be instances where the registration tax on vehicles of this category would be allowed a two-year transition period during which vehicles will be sold under the current regime.
Licenses under the new system will take the euro-standard into consideration. Those in the Euro 4 and 5 categories will be reduced in the first nine years, whereas those of a lower standard will increase. A four-year moratorium will be allowed for all commercial vehicles registered by the end of 2009 before the new license rates become operative.
Port regeneration
Government is allocating e1.5m for emergency repairs on Fort St Angelo. During 2010, government will spend e10m on dredging works in the main ports.
Embellishment
of public places
A financial allocation of e5.2m for embellishment projects in various areas around Malta including St George’s Square, Valletta, St George’s Bay promenade, the Salini National Park and the fourth enlargement of the National Park at Ta’ Qali.
A number of investment projects of around e80m will start soon including the restoration of bastions, the embellishment of, and the amenities along, the Sliema and Qawra coastlines, a new promenade in St Paul’s Bay, a garden and heritage trail in Pembroke, and a visitor attraction at Qawra.
With particular emphasis on the regular maintenance of projects and infrastructure e1.3m are being budgeted to be administered by the Environment Upgrade Committee with inter-ministerial representation and other stakeholders, and managed by the Office of the Prime Minister.
Historic and
cultural heritage
The sum of e9.7m will be budgeted to carry on with the restoration of Auberge de Castille, the Presidential Palace, the area known as the Collacchio in Vittoriosa and that of the Wignacourt fountain at Saqqajja Hill.
Valletta
Funding for the City Gate project will be administered from the National Investment Fund, which fund will be built up from commercial rents and the introduction of concessions. For this fund, the project will be regarded as an investment which will be leased to the Maltese State from the utilisation of the project over a number of years. This means that this project’s funding will not be a burden on taxes collected.
Several projects are also under way all over Valletta, including the paving of the pedestrian area of central Valletta, the development of a historic park in the space below and around the Barrakka by the Heritage Malta Foundation, and the development of a new elevator at Upper Barrakka.
Energy sector
Works will start next year on the extension of Delimara’s power station to replace, in a few years, the outdated and polluting technology at Marsa. They will also start to connect to the European power grid allowing a balance between the required energy sources generated locally and that imported. This could also strike a better balance between the price and the environmental impact of the energy bought.
Wastewater
During 2010 an investment of e30m will conclude the investment cycle launched five years ago regarding wastewater and all waste water will be treated before flowing to the sea. Furthermore, tests are underway to see how treated wastewater can be used as a resource and mitigate the need for water extraction.
ICT investment
Government will continue to invest in IT systems to increase efficiency and the quality of service in the public sector. The investment in systems and new equipment will amount to e60m. Among the most important projects there is the government’s payroll system, an Attendance Verification System, the continuation of the Integrated Health Information System’s roll-out at Mater Dei and the extension of the Gozo General Hospital, the Customs system, government’s property management system, the e-identity system and that of e-learning.
Government is also evaluating electronic systems which are to be replaced or upgraded, including Social Security systems and that of the public registry.
Privatisation
After the liberalisation of the importation and distribution of energy products this year, the gas storage and bottling privatisation process was also completed. The Malta Shipyards privatisation process continued and the evaluation of proposals for part of the Super Yachts is also progressing. Negotiations regarding the part of Manoel Island are coming to an end and a resolution will soon be passed in Parliament to approve the transfer of this facility.
In the coming days negotiations will start with the preferred bidders for the Gozo and Ta’ Xbiex marinas.
Property Sector
During 2009, the property sector slowed down because of the international financial crisis. In November 2006, a final withholding tax of 12 per cent on the market value of property being sold was introduced. The change had provided a choice between the old system, that is with the normal rates on capital gains when the property in question is transferred within five years from the date of purchase. Following a study on the current market situation, for the years 2010 and 2011, the period of choice will be extended from five to seven years, so that the property market in Malta is given that much needed support.
Use of urban property
Government is directing Mepa to investigate and propose methods on how suitable buildings in the core of localities can be used to accommodate tourists and/or as office space. Mepa proposals should be sent to government by not later than April 2010.
For this purpose, government will establish a Joint Working Group between all the competent authorities which shall prepare a regulatory framework and other incentives, including proposals for fiscal incentives, in order to achieve the government target of increasing and spreading economic activity in our localities.
In order to encourage the restoration of historical buildings, or scheduled Grade 1 properties, a refund of 15.2 per cent on the total expense will be granted.
Commuted Parking Payment Scheme funds
Government is also directing Mepa so that, with immediate effect, the Commuted Parking Payment Scheme fund starts to be utilised for the supply of vehicle parking facilities in various places around the country. The Mepa scheme shall be announced by not later than the end of March 2010.
In the implementation of this measure, Mepa shall give priority to those localities where parking is cumbersome, and to commercial areas.
