Roads and Urban Development Minister Jesmond Mugliett and Parliamentary Secretary Edwin Vassallo yesterday launched the new Ta’ Qali Crafts Village Project – a four-year project that will cost around Lm8 million (EUR18.63 million) and create 400 new jobs.

In a joint press conference, Minister Mugliett explained that the total area will cover a total of 75,000 square metres and include three car parks that can hold up to 450 cars.

It will also include an incubation centre that will be run by the Malta Council for Arts, Science and Technology (MCAST) and the Education Ministry.

A call for two tenders will be issued in the coming weeks: the main tender, worth Lm8 million, will include, among others, construction and migration while the sub-tender, worth Lm4 million (EUR9.32 million), will finance the road works.

Minister Mugliett explained that the government applied for, and is expecting, co-funding of Lm3.5 million (EUR8.15 million) from the EU for the road works.

“EU funding, especially where this project is concerned, is only applicable for road works,” he said.

Even though there are two tenders, the nominated sub-contractor will have to answer to the main contractor, said Mr Mugliett.

As a result, the contractor who wins the main tender will have the responsibility for the overall project, he added.

Revenue for the project is expected to arrive from three different sources: contribution from the tenants that will amount to around Lm2 million, EU funding and a Special Permits Vehicle.

The minister explained that through the Special Permits Vehicle (SPV), the government will take out a loan through the Malta Industrial Parks at convenient rates.

“In turn, the loan will be repaid through rents and the rates chosen by the government over a 10-year payback period,” said Mr Mugliett.

The tender should be awarded in the beginning of 2008 and the project should be completed in four years time.

Mr Vassallo pointed out that the 40 people who run a business in the Crafts Village will still be able to do so while the works will be carried out thanks to a carefully thought out migration plan.

Mr Mugliett explained that the project could have been completed in one year instead of four.

However, he added, this would mean that the 40 people working at present will have to put their business on hold for a year.

“In this way, they will continue working and their business will not be disrupted,” he said.

Mr Mugliett pointed out that the project presented various challenges.

Each tenant had his own ideas for the units and careful negotiations were held with each and every tenant until an agreement was reached, he said.

Furthermore, added the minister, the crafts village is not an isolated project but one which has to dovetail with the Industrial Park.

The footprint of the area will not increase but the area where construction will take place will, said Mr Mugliett.

Mr Vassallo spoke about the importance of focusing on the artisan process and product instead of simply placing objects on display and selling them.

“If there isn’t a mind shift towards pushing the manufacturing of the artisan product, we will lose the whole value of the project,” he said.