Malta: Superyacht facility privatisation agreement signed
The concession is for 30 years and the global amount to be paid by Palumbo reaches €29.4million.
This is made up of a purchase agreement of €7.5million and rentals of €500,000 revisable by 15 per cent every five years during the duration of the concession period.
On a net present value basis these funds amount to €14.4 million when discounted at nine per cent per annum.
Through this agreement, Palumbo will be committing itself to an investment in the yard of a minimum of €3.6million during the first five years.
This tendering process commenced on July 10.
By December 2, the closing date for the submission of offers, two bids were received.
Following the adjudication process when the financial offers were opened in the presence of both bidders, Palumbo, who had the highest offer, was declared preferred bidder.
Negotiations were opened in January and these were successfully concluded on March 14.
Finance Minister Tonio Fenech said the agreement would further strengthen the development of the yachting industry in Malta.
Over the past years and particularly in the aftermath of Malta’s membership into the EU, the country had become an important location for the private and super yacht industry.
Malta provided top quality yacht servicing and maintenance facilities. The country’s strategic location in the Mediterranean led to a significant growth in the Maltese yachting business over the past years, resulting in an important source of economic activity and employment creation.
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