The expansion project of Lufthansa Technik in Malta will inject EUR367 million (Lm157.553 million) into the economy during its 30-year life span, the Industry, Investments and IT Ministry said yesterday. The total is arrived at without including the government’s expenditure on the necessary infrastructure, on the hangar itself, and the training needed for the employees.

The figures are given in a Malta Enterprise report to the ministry evaluating the gains to the economy from the government investment.

The government will be financing the construction of the new hangar, which will then be leased to Lufthansa Technik for 30 years. The lease will yield EUR63 million. The government is also financing the training of the students who will move to the company on graduation.

Lufthansa is bound to employ 550 persons and retain that employment for at least 15 years. The wage bill will amount to EUR347 million, and EUR29 million will be paid in national insurance contributions.

Government revenue will get a boost of EUR92 million from the lease and the national insurance contributions.

The ministry said these were conservative estimates because wage calculations were based on the minimum number of employees laid down contractually and on the assumption that the government will not be able to use any European funds for such projects.

The report does not consider either Lufthansa Technik’s own investment of EUR16.5 million which will be spent in Malta. Neither is the multiplier effect of the EUR367 million injection into the economy considered, the ministry said.