Finance Minister Clyde Caruana said that the Maltese government has and will continue to support citizens by ensuring stable utility prices for electricity, water, fuels, and LPG.

He said that this strategy has resulted in some of the lowest energy costs in the European Union, easing the financial burden on families and keeping businesses competitive.

Caruana said that significant progress has been made on the second electricity interconnector, with 99 km of cable will have been manufactured and tested by the first quarter of 2026, ready to be deployed at sea with a specialised vessel to be laid on the seabed, costing government €300 million.

Caruana said that preparations for renewable energy projects, including offshore wind turbines in Malta's Exclusive Economic Zone, are underway, with technical and financial evaluations of interested parties ongoing after a call for interest was issued.

Caruana said work is ongoing and will continue next year on the "strong and rapid investment in the electricity distribution system, with cable installations complemented by new and modern distribution centres and substations using advanced technology.

Water infrastructure

Caruana said the government is expanding "new water" production from wastewater for use by farmers, reducing pressure on natural sources.

Caruana said that government will increase the new water production capacity in southern Malta, with around 16km of distribution network systems expected to be completed by early 2026.

The government will then double the new water production capacity in northern Malta and Gozo, complemented by network strengthening projects in several locations.

Waste management

Caruana said that the government will continue to improve waste separation and recycling in 2026, while introducing new programmes for prevention, particularly food and packaging waste.

He said that a new €85 million Organic Waste Processing Plant is set to handle 75,300 tonnes annually once operational, generating biogas for electricity and compost for agriculture.

He said that plans are also advancing for a €17 million facility to separate over 50,000 tons from shipping waste from open ships to recover recyclable materials, in a new Ship Waste Management Facility.

Green spaces and public access

Significant investment is being made in open and green spaces across Malta, Caruana said, with the Sant'Antnin plant in Wied il-Għajn being converted into a public green area spanning 23,800 square meters at a cost of €37 million.

Next year, preparations and calls for tenders will continue, with progress expected on other major capital projects, including Vjal ir-Rihan in San Ġwann, Triq Sant'Anna in Floriana, the underground Bormla car park, and the Sustainable Innovation Hub in Birżebbuġa, replacing the San Lucjan fuel plant.

Agriculture, fisheries, and animal welfare

In 2026, government will be introducing voluntary schemes that will allow retiring farmers to transfer land to younger professionals with fair compensation and fiscal incentives.

Government will also introduce fiscal incentives to encourage buying and selling agricultural land.

After selecting investors for a new animal slaughterhouse processing plant, construction will begin in 2026, Caruana said, while the temporary Marsaskala facility will be phased out.

He said that investments will also continue in agriculture with a new Pitkalija facility in Malta equipped with advanced technology for profitability, alongside reopening the Pitkalija in Gozo.

Caruana said that in 2026, government will start building a crematorium and a new rehoming centre for stray animals, including a shelter for horses.

He also said that preparations are ongoing for the animal hospital to begin operating in the coming weeks, and in the meantime, atypical veterinary services will also be offered between 8pm and 8am on holidays and weekends.

Transport infrastructure and road safety

Caruana said that the government will continue to improve roads, prioritizing safety and modern infrastructure.

Projects include the ongoing work on the Msida Creek Project, infrastructure for walking and cycling to be enhanced via the C-SAM Project, with five initial projects from the Vjal Kulħadd scheme have begun, transforming local roads into safer, more accessible, and environmentally friendly spaces.

Maritime services and vehicle incentives

Caruana said that in 2026, Gozo's entire bus fleet will be electrified, and ongoing investment in Marsaskala's promenade regeneration and a new fast ferry terminal will support three new routes, next year, doubling connectivity between Malta and Gozo.

In 2026, the Reshaping Our Mobility plan will continue, with off-peak services and off-peak waste collection and deliveries, and a new measure will allow young people up to 30 years of age to return their driving licence for a €5,000 grant over five years, Caruana said.

Grants for electric cars and vehicle scrapping will continue, and new grants will be introduced for motorcycles or for those giving up their car license to use a motorcycle (€1,500/year), Caruana said.

Caruana said that improvements at the Ċirkewwa and Mġarr will continue, while the Shore-to-Ship Supply 2 environmental project at the Grand Harbour will also proceed, alongside regeneration projects such as a water polo pitch and extensions at Marsaxlokk bay.