Issue link: https://maltatoday.uberflip.com/i/1497522
6 maltatoday | WEDNESDAY • 19 APRIL 2023 NEWS NEWS THE European Parliament has approved the ambitious Social Climate Fund, spearheaded by Maltese MEP David Casa, that will help shield households and small businesses from the effects of climate transition. Casa hailed the Social Climate Fund as "the most significant social measure on the road to net zero" as it was voted into law with 521 votes in favour. "We have robust safeguards on how governments will oper- ate the Fund, especially through strict targeting requirements to ensure that funding goes where it will have the biggest impact. The Commission will evaluate detailed plans on how the measures are designed and implemented, with funds only being disbursed upon comple- tion of milestones and targets," he said. The €86.7 billion fund will be invested to shield households and micro-enterprises from the effects of the climate transition. Maltese citizens are set to ben- efit from a ten-fold increase in funding under the provisional agreement, with a mobilization of just over €60 million. Casa, who was the lead negoti- ator of the Social Climate Fund on behalf of the Employment and Social Affairs Committee, said he was satisfied with the increased share for Maltese citizens, stating that "there was a strong case to be made and I am very happy to have achieved this result". The Social Climate Fund, fund- ed in large part by EU funds with minority co-financing by mem- ber states, aims to bring down energy bills and transition away from fossil fuels by investing in energy efficiency and renewable energy. "With the Social Climate Fund, I want to see investments reach citizens with more solar panels, more efficient appliances, better insulation, and greener alterna- tives to transport," Casa said. The Social Climate Fund is a cornerstone of the fit-for-55 package's social policy, address- ing any disproportionate effects that climate measures may have on vulnerable households and micro-enterprises. Casa worked jointly with Esther de Lange of the Netherlands on behalf of the Committee on the Environment and Food Safety in negotiating the Social Climate Fund. European Parliament approves Social Climate Fund spearheaded by David Casa David Casa was the lead negotiator of the Social Climate Fund on behalf of the Employment and Social Affairs Committee MATTHEW VELLA THE Maltese hotel chain In- ternational Hotel Investments, which own the Corinthia brand, has reported a massive doubling in energy costs across its entire hotel chain. Hit by the effects of pandemic lockdowns and soon after the on- set of rising inflation, IHI execu- tive chairman and founder Alfred Pisani said his hotel group had been hit by rising costs of wages, fuels and a wide variety of goods. Energy alone, Pisani said, had grown by 93.48% year on year in costs, together with an increase in borrowing costs with the rise in interest rates that resulted in response to inflation. Additionally the war in Ukraine had negatively impacted the Corinthia Hotel and Commercial Centre in St Petersburg, in Rus- sia, while its project in Moscow, in which IHI has a 10% share- holding, has been put on hold. "IHI's interest in St Petersburg represents approximately 5.6% of the Group's total revenue and 8% assets. It is pertinent to point out that due to the uncertainties brought about by the situation in Russia we took the immediate initiative to repay in advance and in full the €40 million loan that was on balance for the Hotel and Commercial centre in St Peters- burg," Pisani said. Pisani said that in the face of these challenges, Corinthia had sustained a healthy recovery with a reduction in costs, and to have staffing levels reduced by 15% be- low 2019. "We have asked man- agement to keep constant watch and active control of our energy consumption, which combined efforts have had a very positive result," Pisani said. Operating profit before depre- ciation and fair value adjustments EBITDA for 2022 amounted to €51.7 million, an improvement of €25.2 million. In 2019 EBITDA hit €69.8 million. 2022 revenue was at €238.2 mil- lion, with the hotels segment in- creasing by 95% year on year. The overall revenue level stood at 89% of 2019. Pisani said IHI was forecast- ing a further improvement in its performance, which should bring the group closer to 2019 results. IHI, with its globally recognised Corinthia brand, now expects to be operating seven new proper- ties by 2024, including Brussels, Rome, New York, Doha, and Bu- charest, as well as having signed a management agreement for a hotel in Riyad, Saudi Arabia. In addition, plans on the Corin- thia Oasis, formerly known as Hal Ferh in Malta, incorporat- ing a hotel of 162 keys and 25 hotel-serviced villas, are well ad- vanced as works on the detailed designs have progressed signifi- cantly whilst works on the road widening are currently underway. Pisani also said IHI held several meetings with distinguished per- sonalities in Oman, UAE, Qatar and Saudi Arabia where his group is planning three to four new ho- tel management agreements in the next 12 months, particularly in Saudi Arabia, Oman and pos- sibly Dubai. In Jeddah, Pisani said IHI had signed an MOU with Jeddah Central Development Compa- ny, a wholly-owned company of Saudi Arabia's Public Investment Fund (PIF) for its hotel manage- ment company CHL, and its pro- ject managers QP, to develop and operate assets within the Marina District. Inflation costs IHI double its energy bill, but hotels sustain recovery IHI chairman Alfred Pisani