Issue link: https://maltatoday.uberflip.com/i/279808
14 BUSINESS & FINANCE D uring a business trip to Singapore last month, I was fascinated by the island's success in many sectors notwith- standing the fact that it possesses no mineral wealth and is densely popu- lated country which has acted as a safe haven when the world was hell striven by the start of the recession in 2007. Singapore is roughly twice the size of Malta but houses over 5 mil- lion citizens in a densely populated area. It comes as no surprise that over the past decades Singapore has invested heavily in land reclamation for large infrastructure projects such as a massive Freeport and construction of an international airport. So how can Malta ever reach the high GDP per capita on a tiny island where space comes at a premium and land prices are already very expensive (and scarce)? The probable answer is the continuation of land reclamation from the sea. The topic has recently hit the headlines after the prime minister announced the government's intention to invite investors to participate in such ventures. As can be expected, the subject is highly contested by environmentalists and NGO's who focus their thrust against land reclamation saying such measures will upset the ecological, scientific, archaeological habitat amid other cultural values. It follows that due to Malta's size, high population density and unique island biodiversity, any political announcements to encourage land- use are resisted by the environmental lobbyists but of course welcomed by property magnates. The former base their complaints on the island's relatively high urban land cover, while they refer to a high proportion of used dwellings (about 70,000) which in turn raises questions about the overall efficiency of land use when viewed in the context of the latest census relating to residential occupancy. This bone of contention needs to be counterbalanced by the reuse of abandoned dwellings to accommodate social housing for the elderly and potential redevelopment of some of the dwellings, which are old and unfit for habitation. Of course this is what the Housing Authority is doing; that is inviting developers to come forward to form a joint venture with which to share the development costs with government so as to rehabilitate such derelict houses. This is a medium-term solution but in the meantime, in my opinion, there is nothing to stop us from attracting new investment to emulate Singapore's success in land reclamation. Let us stop and ponder how Malta as an island with relatively soft rock has suffered continuous erosion by Mother Nature over the millennia. Economists may argue that we should be thankful for Heaven's mercies, as an overpopulated island regrettably not blessed with any natural resources (such as minerals, mountains or rivers) we have developed our skills and productive abilities to export goods and services over the years. Being more contrite, one can argue that as probably one of the most densely populated country in the world, we need more elbow room to be able to enjoy spacious living conditions. It comes as no surprise that the number of greenhouses increased by approximately 14 % between 2000 and 2007 and this means that the intensity of use of chemicals in the soil will increase the amount of nitrates that will eventually permeate in the water table. Back to the subject of land reclamation and visiting The Malta Environment and Planning Authority (Mepa) website one reads that in the past, it commissioned independent consultants on two major studies focused on reclamation of land including. One dates back to 2005 and explored the idea of disposing construction waste at sea and another completed in 2007 explored the feasibility of land reclamation at two specific areas. It remains a mystery why MEPA had in the past discouraged the environmental and economic feasibility of land reclamation within our coastal zone. To quote an example, there was much negative feeling against the alternative use of a mountain of inert material at Maghtab and some had suggested that due to its proximity to the sea at Qalet Marku, such building debris could be deployed to create a small island as land reclamation given the water level there is relatively shallow. This idea found strong opposition from a number of environmentalists. Naturally the construction lobby is very much in favour of sustainable work linked to large-scale land reclamation work, which on its own can secure jobs and perhaps qualify for EU funding. The prime minister is encouraging the private sector to come forward with ideas and this is welcome. Any large-scale reclamation will inevitably stimulate the regeneration of key areas such as the St Julian's inner creek area and Mellieha bay but designs have to blend and respect with great sensitivity for its aesthetic value and historical significance with the functional considerations of a busy tourist centre with a modern promenade supporting multifarious commercial, cultural and recreation activities. The question one may be asking at this stage is what is the alternative use of reclaimed land? The answer is not very difficult to give since with a bit of imagination one can mention a number of creative projects that can be accommodated thus relieving pressure from building in outside development zone (ODZ) areas. As stated earlier the island is not growing in size but quite the contrary there is constant coastal erosion and rising sea levels. Consider for a while the ambitious cruise liner industry in Valletta and Cottonera being both construed on reclaimed land and, therefore, in this specific context, how vital it is for environmentalists to carefully weigh the advantages of better paid jobs benefitting from a heavy investment, both private and public, to reclaim land from the sea. Certainly land reclamation is not new to the Maltese islands and here I can mention with pride the success of the Marsa Sports Grounds, built entirely on reclaimed land, the sea originally reaching inland as far as Qormi since ancient times. Turning to Msida, I can point to another prime example of a major land reclamation project not forgetting the massive Freeport terminals in Birżebbuġa (employing thousands) and the platform on which the Delimara power station stands. Moving on to the advantages of reclamation, one remembers with nostalgia seeing old photographs showing how the parish church in Msida was built facing the sea and now with hindsight we ignore or take for granted the vast stretch of reclaimed land that made possible the improved road infrastructure right up to Rue D'Argens. Can I ever forget to mention the notable cruise liner terminal in Grand Harbour? Really and truly, there will always be a price to pay when inert waste, usually from construction and demolition sources, is arbitrarily dumped into the sea for land reclamation. The hardest hit, from a purely environmental standpoint, is obviously the seabed, which not only loses its integrity in terms of physical characteristics but any biodiversity thriving on a particular site can be wiped out altogether. The obvious collateral damage to the Posidonia oceanica meadows (seagrass) that lie over large tracts of seabed at various depths around the coastline merits serious consideration as the ecological significance of such meadows is well known in terms of stabilising the seabed and serving as nurture grounds for an immense variety of marine organisms. Also, any illegal dumping of inert waste at sea to build retaining walls for land extensions is aesthetically unpleasant as it disturbs the water column by contributing to turbidity, as such dumping takes ages to eventually settle down as sediment on the seafloor and of course when the process is completed it lowers the photosynthetic capabilities of aquatic species in that particular site to the detriment of the marine ecosystem as a whole. Another concern is the toxic element inherent in unsorted waste such as heavy metals, burnt oil or other chemicals that could be absorbed by the marine ecosystem and in the process go on to contaminate food chains. The implications in terms of the resultant particulate matter levels in ambient air, for example, white and black dusts as a result of heavy machinery to move material is not to be under estimated. So now that the Government is inviting investors to come forward to participate in this ambitious project, what are the environmental and economic implications of engineering an artificial island on a much smaller scale to the world famous Palm Island in Dubai? Could this pipedream materialise now that the Prime Minister has fired the starting gun? It is certainly a controversial topic that has long grasped the imagination of many architects and challenged the capabilities of structural engineers trained at our University. Optimists reply that a Palm Island in Marsaxlokk harbour opposite the new gas plant could perhaps be convenient for berthing massive LNG carriers away from urban areas where otherwise they be perceived as problematic and residents are complaining – please not in my backyard. Another idea is an artificial island for the purposes of constructing a mega-solar power station ostensibly to qualify for the EU funds given that twenty percent of our energy has to be derived from clean sources by 2020. So to conclude is it pie in the sky or a incredible dose of political audacity by Prime Minister as he is trying to start solving the dilemma of a shrinking island? If he succeeds, then that will be the day when Malta may rise as a phoenix out of the water and share the success of a quasi- Singapore in the Med. George Mangion is a partner in PKF an audit and business advisory firm. gmm@pkfmalta.com maltatoday, WEDNESDAY, 19 MARCH 2014 The evolution of land reclamation George Mangion mbank.com 2132 2100 FIMBank is an international trade nance specialist with an established reputation as a dynamic and customer-driven provider of trade nance solutions. FIMBank is headquartered in Malta and benets from a growing network of international oces. documentary collections bonds and guarantees treasury management structured trade nance commodity trade nance letters of credit ship nance payments forfaiting factoring Trade Finance Solutions engineered for business success Really and truly, there will always be a price to pay when inert waste, usually from construction and demolition sources, is arbitrarily dumped into the sea for land reclamation