Issue link: https://maltatoday.uberflip.com/i/490723
maltatoday, SUNDAY, 5 APRIL 2015 6 News LABOUR MPs on the first district are expected to face serious com- petition from Aaron Farrugia, who is exploring a candidature bid for the forthcoming general elections on the Valletta constituency. In 2013, Labour elected three MPs from the district – mainstay José Herrera, appointed parlia- mentary secretary, deputy prime minister Louis Grech, and new- comer Deo Debattista, who went on to be appointed chairman of the Occupational Health and Safety Authority. Close to the heart of Labour's electoral machine, Farrugia, 35, was appointed to chair the party's Ideat think-tank and then to act as secretary on Labour's electoral pro- gramme, assisting former minister Karmenu Vella on the finalisation of Labour's 2013 challenge to the Solar roof space leased at 50 cents per sq. metre to Enemalta JAMES DEBONO THE state energy company Enemal- ta was granted over 300,000 square metres of roof space for the devel- opment of solar panels at an annual rent of 50 cents per square metre, in a public deed hammered out just two days before being incorporated into a public limited company. The 25 August 2014 agreement was a necessry step before Enemal- ta's partial privatisation, turning the corporation into a PLC as well as amending a legal notice so that no parliamentary resolution would be required to dispose of the land. Enemalta will pay an annual €154,767 for the solar roof space, together with its new shareholders Shanghai Electric Power (SEP) whose €320 million investment bought it a 33% stake in the energy company. SEP is now aiming to gain a foot- hold in the EU market for the de- velopment of renewable energy projects, through the creation of two joint venture companies. Another two deeds signed on the same day, granted another 91,000 square metres of land in Marsa and Marsaxlokk to Enemalta for annual payments of €285,000 and a €2.6 mil- lion one-time payment. The three deeds, altogether author- ising the transfer of 391,145 square metres of government land, were signed before the passing of the law making Enemalta a plc. Had the law been introduced before the transfer, the land would not have been able to be transferred without a public tender or parliamentary reso- lution. Crucially, the new approved by par- liament in July, which came into ef- fect on 27 August 2014, exempts any future land transfers from Enemalta, from the customary rules that gov- ern the disposal of public land: the law specifically exempted any land owned by Enemalta or its successors, from the Disposal of Government Land Act (DGLA), meaning that such land transfers do not require any further authorisation in terms of the DGLA. LN 302 specifically refers to the three deeds signed 25 August, ex- empting them from the DGLA's re- strictions, since that law was still ap- plicable to Enemalta at the time the deeds were siged. Copies of the three deeds were passed on to MaltaToday by the Gov- ernment Property Division following an official request for information. The solar panel deed describes the transfer of the government land to Enemalta as a "grant", tagged at an annual €154,767. The deed binds Enemalta to install an unlimited number of photovoltaic panels, to be responsible for the gen- eral upkeep and maintenance of the panels and to engage a qualified engi- neer to certify the safety of the struc- tures supporting them. The largest two pieces of land "granted" to Enemalta, presently al- located to the Cleansing Services Department, include 101,516m2 of airspace on land in Zurrieq, and 73,842m2 of airspace on land in Naxxar. Another large piece of land consists of airspace of 22,928m2 in Xaghra, Gozo, at il-Qortin t'Ghajn Damma. Other lands granted to En- emalta for this purpose are located in Ta' Qali, Pembroke and prop- erty presently allocated to Transport Malta in Floriana. 99-year emphyteusis for Marsa The site of the Marsa power station and its surrounding lands, measuring in total just over 67,000 square me- tres, was granted to Enemalta for a 99-year period. Enemalta paid a one-time payment of €2.6 million and will pay an annual ground rent of €65,000. Before signing the deed, the gov- ernment and Enemalta terminated a lease agreement between the cor- poration and Vault Finance, a spe- cial purpose vehicle created by the previous administration as part of the restructuring process to address Enemalta's debts in 2012. The conditions of the acquisition, including the price, were pre-estab- lished in the 2012 agreement with Vault Finance before Enemalta was turned into a public liability com- pany and partly privatised. The new agreement allowed En- emalta to transfer the land to third parties even though management agreements, explicitly stating that a 'lease', 'management agreement', 'concession' and 'grant of possession' of the property shall not be deemed to be a transfer or disposal that would require permission by the Commis- sioner of Lands. Another deed signed on the same day was for an annual ground rent of €220,000 for 13,771 square metres of land in Marsaxlokk, over which En- emalta was granted a 25-year lease, and just over 3,700 square metres of land already released to the corpora- tion. Aaron Farrugia considers 2018 candidature Call for Quotations: Hosting of an international conference for the IMaGenX project The Malta Council for Science and Technology is requesting quotations for hosting an international conference for the IMaGenX project between Thursday 9th and Friday 10th July 2015. Tenderers are requested to submit their proposals for the provision of a conference hall with a capacity of maximum 100 persons seated in theatre style. The successful tenderer must take into account the necessary preparations the tenderer would be making prior to the conference and the dismantling of equipment following the conference. Further information can be downloaded from www.etenders.gov.mt. Interested bidders are to submit a proposal on the mentioned website. The Malta Council For Science And Technology, Villa Bighi, Kalkara KKR 1320, Malta www.mcst.gov.mt No need for parliamentary resolution on 'grant' of 390,000 square metres of land to Enemalta plc after changes in law DOMINION Bond Rating Service, a Canada-based credit rating agency, has assigned an 'A' rating for Malta, crediting "prudent lending practices and stable household finances" with saving the island from the im- balances that plagued other Eu- rozone countries. In its first ever rating, DBRS however warned that Malta's weak productivity growth and high, rising costs posed a chal- lenge for competitiveness, while low labour participation limited fiscal flexibility. Malta benefits from a flexible labour force and favourable tax climate, but DBRS warned that educational outcomes were relatively poor, showing weak basic skills attainment and a high rate of early school leaving. "The younger generation shows higher levels of educational at- tainment than older genera- tions, and Malta has been able to adapt training programmes in response to the needs of key employers." But despite Enemalta's re- structuring, the public sector remained exposed to debt and financing shocks, with DBRS warning that tourism could also be adversely affected by a down- turn in European economic ac- tivity. The finance ministry wel- comed the ratings, noting DBRS's statement that competi- tiveness had been undermined since 2007, "contrary to the Op- position's claims that the previ- ous administration had left a solid economy behind them". Shadow finance minister Mario de Marco noted DBRS's claims that "membership in the Eurozone plays an integral role in Malta's economy". "It is ironic that the Labour Party, which opposed both Eu- ropean Union membership and the adoption of the Euro, is now seeking to take credit for the positive effects of Malta's ac- cession to the EU and the Euro- zone," he said. 'A' rating from DBRS for Malta