On taking office last March, one of my first tasks was to embark on an exercise to take stock of the situation in respect to the allocation and utilisation of EU-Funds which were available to Malta under the Financing Programme 2007-2013. The objective was to find out the progress (or lack of it) on the implementation of EU-funded projects, and especially to establish the amount of EU funds which were still unallocated and consequently at risk of being lost.
To my great surprise I found a very worrying situation with many EU-funded projects valued at €590 million at risk of being lost due to delays in their implementation. A case in point was December 13th Road project which was completely at a standstill with millions of Euros in jeopardy not to mention the great inconvenience caused to motorists due to unfinished road works.
Several projects could not take off because calls for tenders were not being issued on time due to a backlog of work at the Department of Contracts. A similar situation was evident at the Malta Environment and Planning Authority with development permits held up due to many pending requests awaiting processing. Other projects were stalled due to bureaucratic delays while financing schemes were suspended due to irregularities, incorrect procedures or fraudulent activities to the great frustration of entrepreneurs and SMEs who had invested their own money and were waiting to be reimbursed.
Even worse, around €200 million were at risk of remaining de-committed and hence interventions were needed to be certified and subsequently disbursed.
At the time people could not believe that we inherited such a mess. And I cannot blame them because prior to the general elections we were given a completely different picture. We were given the impression that EU funded projects were moving on track and that investment schemes were being implemented to perfection to the satisfaction of employers. However, nothing could be further from the truth.
In order to address this situation we had to take the bull by its horns. Together with my Cabinet colleagues we embarked on an exercise to identify and solve the problems which were causing delays in the implementation of projects. In particular we set up ad-hoc evaluation committees both at the Department of Contracts and at MEPA for EU funded projects to be given preference over other projects which were of a lesser priority. We increased the number of employees at the ETC to hasten the process for the payment of funds due to SMEs on training schemes. We identified various projects and initiatives on which to invest the millions of uncommitted funds. We set ourselves the challenge to make every effort in not losing one single cent of EU-funds.
And we succeeded. We delivered on our promises. As announced by Prime Minister Joseph Muscat today week during a visit to the Priority Projects Coordination Division and the Funds and Programmes Division which form part of my portfolio, the €200 million Euros which were at risk of being lost were fully disbursed on various projects. Other funds were also committed; including €3.5 million on the Master IT Scholarships scheme to the benefit of 430 persons; €15.5 million for the health sector including €3.6 million for the Gozo General Hospital; €3.4 million for the purchase of screening equipment at Mater Dei Hospital; €8.4 million for the building of two hospital wards which will accommodate 68 beds at Mater Dei Hospital as from next year. Moreover, €3.6 million and €4.4 million were invested in the Safi Aviation Park and in the Digitul Hub next to the Life Science Park respectively, both of which are expected to generate new employment opportunities.
Other funds were used to extend the Jeremie Programme which has had a positive impact on the economy and which will now be further extended to the benefit of another 100 enterprises. Another 300 employees in Gozo will also benefit as a result of an increase of €2 million in the fund for the Employment Training Programme. Apart from all this, the sum of €3.7 million under the European Refugee Fund will also be used to improve the services provided to illegal immigrants arriving in Malta.
I wish to take this opportunity to acknowledge the hard work put in by the staff at the PPCD and the FPD without whose efforts, dedication and hard work we would not have achieved our goal. At the same time we feel proud to have delivered on our promise that not one cent of EU funds which had been at risk, would be lost.
Looking ahead, we intend to keep the same momentum when it comes to the allocation and utilisation of the funds which will become available under the Funding Programme 2014-2020. Together with the PPCD and the FPD and in cooperation with the line Ministries we are already identifying projects and initiatives that would be eligible for funding. We have started early on because we wish to avoid a repeat of last year’s experience with projects at risk of being lost. We will not repeat past mistakes under previous administrations and I will be on the alert and do everything in my power not to get to a stage where EU funds may be at risk of being lost due to unjustified delays in the identification and the execution of projects.
I am making this commitment while fully aware that in a few years time I will have to give account of my undertaking.
Dr Ian Borg is the Parliamentary Secretary for EU Presidency 2017 and EU Funds.