The government has said that the privatisation of the three Government-owned Marina’s, including Mgarr in Gozo, will provide a boost to the local economy, particularly for the tourism sector as well as other enterprises that provide services and products to the yachting industry.

Minister of Finance, the Economy and Investment Tonio Fenech outlined the reasoning and the specifications behind the decision, which has already been indicated in last November’s Budget Speech, to privatise the Yacht Marina. Minister Fenech explained that Government believes that the management of such marinas is not consistent with the regulatory role of Malta Maritime Authority and that this move is aligned with the broad Government policy to continue to entrust operational activities to the private sector, while limiting the role of the public sector to policy setting and regulation.

“As demand for berthing facilities continues to grow at a rapid rate, Government believes that the local yachting sector could derive significant benefits from the involvement of the private sector. In the hands of experienced and reputable private operators, complemented by investment in upgrading the existing facilities and improved berthing management, the marinas’ unique location and facilities could be positioned to take advantage of the business opportunities presented by a growing and dynamic yachting industry,” explained Minister Fenech.

The Privatisation Unit will be entrusted to run this process on behalf of Government and Malta Maritime Authority. Following this announcement, a public call will be issued tomorrow, requesting interested parties to collect the documentation from the Privatisation Unit, to participate in the process leading to a Concession for the Operation and Management of three Yacht Marina facilities through three distinct but parallel processes.

These are:

1. Msida Yachting Centre (Msida Gardens), Pontoons A to G

2. Ta’ Xbiex Yachting Centre, Pontoons H to O

3. Mgarr (Gozo) Marina

Minister Fenech highlighted numerous benefits that are expected to result from the 25 year Concession for the operation and management of MMA yacht marinas. These include fostering a competitive yacht marina sector with the participation of various market players operating within a level playing field; upgrading the service level through investment and modernization of yacht marina facilities; improving the management and optimize the capacity utilisation of yacht marina operations in Malta through improved matching of berth supply and demand; the optimization of MMA’s one-time and annual proceeds, the latter not to be less than the annual contribution currently generated by the yacht marina operations; to render the local yachting arena competitive along those prevalent in the Mediterranean rim, as well as to attract new value-added services, such as yacht chartering and wintering of superyachts. In taking responsibility for any of the marina facilities, the Successful Proponent shall be required to:

(i) Upgrade the marina facilities and infrastructure within 24 months, including fittings to quay walls, pontoons, moorings, water and electricity installations, access control gates, fire-fighting equipment, chains and shackles;

(ii) Run the marina facilities in compliance with the appropriate local regulatory and international standards, including but not limited to environment protection, security and occupational health and safety;

(iii) Develop and manage the entrusted facilities with a view to ensuring their long-term sustainability within the yachting services market;

(iv) Commit to a berthing fee structure for a period of 5 years.

At the end of the Concession period the facilities will revert back to the Malta Maritime Authority.