€12.6 million loan from BOV to start works on Renzo Piano's City Gate project
Despite a vague allusion in last November’s budget speech, the National Investment Fund promised more than a year ago has failed to materialise, prompting the government-owned Grand Harbour Regeneration Corportaion (GCRC) to take out a €12.6 million loan from Bank of Valletta to finance the demolition and excavation of Renzo Piano’s Valletta City Gate project.
A confirmation of the loan was obtained by infrastructure minister Austin Gatt in replies to MaltaToday.
While it remains unknown what guarantees were offered to secure the multi-million loan granted by BOV to GCRC - which is run by government’s investment arm Mimcol – a senior government spokesman said that the decision was taken in the wake of a serious delay in the setting up of the National Investment Fund.
Austin Gatt’s ministry shifted the buck to the finance ministry that is responsible for the setting up of the fund for replies.
The fund was originally intended to raise revenue through the sale or lease of government properties, so that the Renzo Piano project – a controversial initiative which will see a new entrance to Valletta, a new House of Representatives on Freedom Square, and the Opera House ruins converted into an open-air theatre – “would not be a burden on the taxpayer”.
“Preparatory work is being carried out to operationalise this budgetary measure,” a spokesperson for the Finance Ministry had told MaltaToday more than a year ago..
The City Gate project has meanwhile begun in earnest, with the demolition of City Gate and the surrounding arcade, the excavation of Freedom Square, the relocation of shops and offices.
An estimated €40 million has already been paid up in advance over the project, while the Finance Ministry still leaves questions unanswered regarding the source of the funding.
Out of the €12.6 million loaned by BOV, the consortium is now left with only €2.4 million left to work with as €10.2 million have already been drawn out to pay contractors involved in the ongoing works.
Speaking during a visit to the construction site where works are ongoing on the demolition of City Gate, Gonzi expressed satisfaction that works are finally underway and that Valletta would be soon having a gateway suited for “modern times”.
He said this project would be “an open invitation to all to enter Valletta, Malta’s prestigious capital city”.
READERS COMMENTS
8COMMENTS
· SUBMITTED ON THU, 05/19/2011 - 09:02.
PM & his vanity = Taxpayers burden
Haha
· SUBMITTED ON WED, 05/18/2011 - 20:32.
Money No problem ghall dan l gvern .
Ser jibni dan l progett milli kellu mfaddal ?
Ahleb gus
Save Gozo
· SUBMITTED ON WED, 05/18/2011 - 17:40.
U biex cikku l-poplu jissellef xi haga mill bank jaqlawlu qalbu
josef
· SUBMITTED ON WED, 05/18/2011 - 15:23.
tHANKS PIZZI for pointing it out!
The applicant wold not only fail miserably in the Credibility Check but also in the CREDIT CHECK if it wasn't for the taxpayer who is always powerless to check if he is truly getting value for taxes paid!
Takes me back to that faithful evneing when our Prime Minister was not even given funds from an ATM ......
That was one SMART Credit and Credibility Check !
http://www.youtube.com/watch?v=ZQaC6hoYi-U
Thorny
· SUBMITTED ON WED, 05/18/2011 - 13:16.
I would like to inform Thorny that the applicant has failed miserably in the Credibility Check but since the taxpayer acted as guarantor the loan was approved.
pizzi
· SUBMITTED ON WED, 05/18/2011 - 11:28.
Once again, it HAS become a burden on the taxpayer.
wenzu.
· SUBMITTED ON WED, 05/18/2011 - 11:24.
So the government has been caught on the wrong foot again.
So now money is a problem but who cares so long as Gonzi cuts the ceremonial ribbon before the election to awe the people!
May I ask what interest rate BOV is charging GCRC?
The Alchemist
· SUBMITTED ON WED, 05/18/2011 - 10:16.
Was a Credibility Check done on the Applicants?
Thorny
http://www.maltatoday.com.mt/news/national/demolished-city-gate-to-be-closed-for-2-3-weeks