Issue link: https://maltatoday.uberflip.com/i/310131
News maltatoday, SUNDAY, 11 MAY 2014 People you can trust Don't just listen to us, listen to our clients 99% rate our service as good or excellent 77% have already recommended us to their family and friends* Avoid long waiting lists and choose your own doctor in your time of need Ask Atlas for a health insurance quote on 21 322 600 or atlas.com.mt Don't just listen to us, listen to our clients Atlas Healthcare Insurance Agency Limited is authorized under the Insurance Intermediaries Act 2006, to act as agents for AXA PPP healthcare Limited and is regulated by the MFSA. *In a 2013 survey of more than 400 claimants. JURGEN BALZAN TRANSPORT Malta has confirmed that a private company is using the former Malta Shipbuilding site in Marsa for the temporary berthing, repairs and maintenance of semi- submersible oil rigs. MaltaToday understands that this another concession to a private com- pany awarded without a public com- petition. The authority has however ex- plained that the site "does not fall under the sole remit of Transport Malta". TM executive chairman James Piscopo said the concession was "a typical positive case where differ- ent government entities collaborated proactively, in seizing an imminently realisable opportunity that could have been missed if we did not act promptly." Echoing previous statements jus- tifying a direct order to another pri- vate company for the use of the Outer Coal Wharf in the Grand Harbour, Piscopo added that this decision "not only brought about economic benefits but also put Malta solidly on the map, sending the message that it can also excel in the oil rig repairs sector at a time where activity in the Mediter- ranean is picking. Had we not acted together and fast, this opportunity would have been lost". Last month, MaltaToday revealed that TM awarded a lucrative direct order to Melita Shipyards, incorpo- rated just two weeks after the March 2013 elections, for a floating dock at Outer Coal Wharf. However, the new direct order for the shipbuilding site was not issued directly by Transport Malta, the au- thority told MaltaToday. "This was a proactively coordinated effort between various ministries and government entities, whereby a previ- ously derelict area was allocated for a temporary period between 4 No- vember 2013 and 31 July 2014 to a local operator to capitalise on an im- minently available opportunity in Oil Rig Repairs," Transport Malta said. The concession is for the temporary berthing, repairs and maintenance of a semi-submersible oil rig and also in- cludes storage facilities. "While government entities are reaping the benefits of thousands of euros per day in rent fees and the applicable statutory port dues, the economy at large is reaping economic value added from the multi-million euro budget available, across the whole maritime cluster, transporta- tion, supplies and hotel accommoda- tion sectors". The project, the authority added, "not only brought about investment in the derelict area, but also already generated employment". MaltaToday is informed that the direct order was awarded to Ableman International Limited, owned and controlled by Paul Abela, which of- fers repair and maintenance services of oil rigs. This direct order has raised eye- brows among the shipping and serv- icing sector, especially since the ship- building site has been earmarked for a multi-million project which should see the derelict site turned into a mar- itime hub. It is not known whether the com- pany which was awarded the direct order is among the companies who submitted a bid for the development of the former shipbuilding site. However, TM has reassured that the temporary concession would not in- terfere in any way with the privatisa- tion of the former Malta Shipbuilding site, because the concession would end before the maritime hub project physically starts. In February, Economy Minister Chris Cardona had said that gov- ernment received 45 expressions of interest for the development of the maritime hub on the 175,000 square metre site. The applications include 28 inter- national expressions of interest, with 11 bids proposing the development of the whole site and the rest proposing the development of part of it. Speaking in Parliament, Car- dona had noted that government was in the process of issuing a call for proposals. Floating dock A private company recently filed a judicial protest against Piscopo, for unilaterally granting the lucrative permit for a floating dock without is- suing a call for tender or an expres- sion of interest. Woman In Management Ltd de- manded that TM repeal the conces- sion it gave to Melita Shipyard, which it claimed was in breach of competi- tion laws. The company said it could have possibly shown interest in the regu- lator's contract, but that this was not published and therefore prevented them from competing for it. Piscopo had confirmed with Mal- taToday that Melita was directly awarded the permit "because this was an immediate, realisable opportunity that ought not to be missed". He said the operation was expected to generate a turnover in the region of €10 million annually, and have a sp- illover effect for subcontractors and related services. The 12-month agreement was similar to other agreements for use of other port areas, and renewable sub- ject to the success of the operation and at TM's discretion. The opera- tor is bound by a series of long-term conditions, including the engagement of four apprentices for three consecu- tive years, and a €4 million invest- ment in infrastructure, equipment and upgrading of the area. Transport Malta grants new direct order at former shipbuilding site