Planned national projects to be frozen as government faces higher energy prices – report

As the country continues to face rising energy prices, the government has taken the decision to freeze several infrastructure projects that were to be funded entirely by state funds. Times of Malta reported on Sunday.

A top civil servant said the decision could affect certain road improvements, schools and other projects planned.

The decision also includes the expectation that large investments, especially new ITS projects close to smart cities, will be given less weight, along with major projects announced before the general election in March.

Projects already started and projects partially funded by the EU Recovery and Resilience Facility and the European Regional Development Fund will not be affected. newspaper report.

Finance Minister Clyde Caruana informed all executive secretaries of the decision at a meeting last Wednesday.

Caruana’s clear message is that no more money can be allocated for projects that are 100% allocated from the national budget, otherwise energy bills will increase significantly, sources told the newspaper.

They said that for every euro spent on state-funded projects, another euro should be cut from another part of the state budget. These projects have no set start date, and the decision will save the government “hundreds of millions of euros”, which it can channel into the energy crisis.

The Maltese government has opted to absorb the additional costs of the skyrocketing energy prices that have affected the entire EU. The government is trying to scoop her €200 million from that spending to create an emergency fund to cover rising energy costs.

Energy Minister Miriam Dali said current government subsidies have kept prices stable at pre-pandemic levels and Malta now has the third lowest electricity tariff in Europe, according to a recent survey. was shown.

Ministries were also ordered to cut administrative costs, Times of Malta report.

The subsidy could cost the government up to €400 million in 2023, according to Enemaarta sources.