Issue link: https://maltatoday.uberflip.com/i/667669
maltatoday, SUNDAY, 17 APRIL 2016 12 News Cooperation agreement signed for Huawei's €4.5 million investments in Malta MIRIAM DALLI A second memorandum of understanding has been signed between the Mal- tese government and Chi- nese electronics giant Hua- wei which will result in a combined investment of at least €4.5 million. Huawei, which competes with Sweden's Ericsson for the top spot in the global market for communica- tions infrastructure, will also be sponsoring five stu- dents from the ICT Faculty every year. The students will be given the opportu- nity to travel to China for training with Huawei, ex- posing them to the latest technologies, research and development. In the presence of Prime Minister Joseph Muscat, the MoU was signed by competitiveness parlia- mentary secretary José Herrera and Huawei Italy CEO Edward Chan. The 'strategic projects cooperation' agreement paves the way for a €3 mil- lion investment in the 4.5G mobile coverage prior to the introduction of 5G. The agreement also covers the €1.5 million research and development under the Safe Malta cap. Hua- wei will be testing its Safe City technology providing a new platform in fight- ing criminality, preventing crime and controlling traf- fic, amongst other provi- sions. "Safe Cities will revolu- tionise the way we make our neighbourhoods and streets safer whilst re- specting privacy and data protection," Muscat said, hailing the strategic part- nership between the two sides. The Prime Minister spoke of Malta's ability in providing companies with the right environment to test their technologies and help turn ideas into big in- vestments. "Our stable democracy, a safe jurisdiction, our en- ergy and our flexibility in adapting fast to challenges make us the ideal destina- tion," he said. Huawei employs over 170,000 employees world- wide in 175 offices. Its revenues for 2015 were estimated at $60 billion, of which 60% is generated outside China. Senior officials from Hua- wei's western European re- gion are meeting in Malta over the weekend. Gozo tunnel by 2030 is in 'race against time' MATTHEW AGIUS THE Prime Minister and Leader of the Opposition have commit- ted themselves to a tunnel linking Gozo and Malta, which will not be introduced at the expense of the Gozo Channel ferry. Addressing a conference organ- ised by the Front Favur il-Mina, Prime Minister Joseph Muscat and opposition leader Simon Bu- suttil also insisted that the tun- nel required national consensus. Muscat added that the project would however require "Gozo leadership". The Chinese government had made a multi-million euro offer for a bridge project, which was eventually not selected. Muscat said that the study made for this project had gathered use- ful information and economist Gordon Cordina had used the study as a basis for his report on the tunnel idea. "Three scenarios are feasible, but a tunnel was adjudged the best option." The government is in the fi- nal stages of preparing a tender with Transport Malta to select the consultants for the geological studies. There will be an open call and this will lead to the conclu- sion of these studies. Cordina's report covered the so- cial and economic aspect, but the environmental aspect was still to be addressed. Considerations in- clude the start and end points of the tunnel, what to do with the debris created by the excavation, and the effect on seabed fauna. An EU directive imposes the condition that if 10% of the algae in the area is affected, the project would not be allowed to go ahead. "There should be a discussion on what type of tunnel should be constructed, whether only for cars or for a metro or maybe both," the Prime Minister said. Muscat warned, however, that the wider the requirements, the larger the need for strategic en- vironmental assessments and the sense of urgency and immediacy he felt from the Gozitans would be sidelined. Muscat said he was "laying his cards on the table", saying that he would prefer a public-private partnership. "It is a mistake to think that a tunnel would be free of charge. There must be some form of a toll to generate income and interest from the private sec- tor. Without it in my opinion this project will not happen." Muscat said he doubted the fea- sibility of the solely Government- funded option. "The Gozo Channel must con- tinue to be viable as a means to an end, not an end in itself. It is needed for cargo and as an alter- native route. Right now discus- sions are underway for the intro- duction of a fast ferry between the islands. "Gozo simply could not wait several years for something to happen. The fast ferry project must be completed." He agreed that this should be a national project but with one pro- vision: the leadership should be Gozitan. "Outsiders have a romantic notion that things should not change. I slept over and caught the 5am ferry – the commotion is unbelievable: the queues you would only expect in an Ameri- can metropolis at peak time. 99% of the Maltese have not seen this scene and therefore cannot empa- thise or understand this need." On his part, Busuttil said he agreed that this would be a na- tional project. "Linking the two major islands cannot be seen as from one island only. This is a dream of many people but now there is a clear movement. Consensus is needed for this project to succeed. Any- thing that threatens this must be avoided," he said. Busuttil pointed out that shad- ow Gozo minister Chris Said had mooted the idea of a tunnel in 2012 but the new government had instead started thinking about a bridge. "The first thing we need there- fore is to have a consensus on the project. It makes a lot of sense to have continuity built on consen- sus to cater for changes in gov- ernment." While the project is still in the studies stage, Busuttil said that he also believes that a study should be carried out as to what type of project is needed: whether the tunnel should only lead to Mgarr, or also link Victoria to Valletta or to the university. The possibility of a national underground project should also be explored, Busuttil suggested. Also important is to ensure that the tunnel will not "be simply ex- porting the Maltese traffic prob- lem to Gozo". The PN is in favour of the tun- nel project and was "ready to give its support to the necessary studies and have discussions with the government to ensure that if there is a change in government down the line, the project will not suffer for it." 'Geological feasibility study could take up to eight years' Geologist Peter Gatt warned the conference that a proper geologi- cal feasibility study of the project could take between five and eight years to complete. If so, that could turn the entire tunnel project into a race against time – as the three Gozo ferries will have to be decommissioned by 2030 at the latest, according to projections by economist Gordon Cordina. Cordina conservatively predicts that the ferry fleet replacement will cost €120 million, with main- tenance and fuel costs estimated at a further €21 million a year. Gozo Channel chairman Joe Cordina told the conference point-blank that his company does not have enough money to replace the three vessels, or for that matter to add new vessels to the current fleet. Gozo Tourism Authority chief executive Joe Muscat called for social studies on the impact of a tunnel to tourism trends to the island. "Will Gozo become a day trip destination? Will tourists spend more nights at hotels in Gozo? Remember that half of Gozo's GDP comes from tourism…" However, he said that Gozo would certainly "lose its char- acter" without the tunnel due to the brain-drain of its residents to Malta. Gozo Business Chamber presi- dent Michael Grech said that the majority of Gozitan businesses are in favour of a tunnel between the two islands. "There is already a queue of for- eign consortia who are interested in the tunnel project and who had spoken to the government. If the government were to issue an ex- pression of interest, the queue of interested parties would stretch all around Castille." Geological study alone would take eight years. Party leaders say Gozo tunnel requires national consensus 'It is a mistake to think that a tunnel would be free of charge. There must be some form of a toll' – PM