The
Government of Malta has announced its intention to proceed with the award of a
concession whereby it will be granting a suitable site to a private economic
operator under title of temporary emphyteusis. The main rationale underlying
this decision is the belief that, in the hands of a private Proponent, the selected
site can be optimised to take advantage of invaluable business opportunities
and generate economic growth.
The
PU is hereby inviting firm offers for the award of the Concession as described
in the downloadable document, together with the submission of the Proposal
including the Project Plan for the Concession to Design, Construct, Finance,
Operate and Maintain an International Logistics Hub at Hal Far over the term of
the Concession Period of sixty five (65) years on the selected site.
Scope and Nature of Concession
The
Government’s vision is that an International Logistics Hub (ILH) at Hal Far
will be developed on the selected site and the operations allowed will be
restricted to international hubbing, and the Site must be developed, classified
and maintained as either a Customs Free Zone or a Customs Warehouse.
The
ILH will act as a strategic hub in the Maltese Islands for international business.
It is expected that the Successful Proponent will obtain from Customs
appropriate authorisations, permits or licenses to operate a Customs Free Zone
or a Customs Warehouse in accordance with the relevant legislation complete
with, if applicable, inventory system, proprietary software, specialised
training and related procedures.
The
general strategic parameters of the RFP document are defined in such a way as
to allow the Proponents a fair degree of flexibility in defining and justifying
their Proposal.
A
major objective of the general strategic parameters of the RFP document is to
ensure that the Proposal provides the best value added prospects and fosters
higher human capital development leading to significant employment prospects in
Malta.
Volume of the Proposed Development
It
is envisaged that the whole Site may be developed and, considering that the
height above ground is capped at circa twenty five metres (25m) with an
underground depth of up to circa eight metres (8m), a scenario of an absolute
maximum volume of 1.48million m3 may be expected. This is a theoretical maximum volume since
there are many other considerations that would have to be taken into account by
the Proponent, not least of which circulation at ground level around the building/s
comprises the Facility.
The
Proponent is required to develop on the Lease Back Area, at its sole cost and
expense and with no right to claim compensation and to the specifications set
out in Annex XI of the RFP Document. The Lease Back Area Development is to be
configured in order to generally maintain the operational requirements and
practices currently in force at the Groupage Warehouse that currently operates
from the Site. In the event that the Government no longer requires title to the
Lease Back Area, and opts to dispose of it, the Successful Proponent will be
offered the right of first refusal.
The
Proponent shall have the liberty to define the combination of spaces and
related sub-uses within the declared objectives of the RFP document. It is
envisaged that the underground space may be used for temperature controlled
storage in order to reduce the energy footprint of the facility. Such underground space may potentially extend
beneath the whole Site including beneath spaces kept free for purposes of
circulation. The usable volume would also depend on the inclusion or otherwise
of processing and/or packaging areas that the Proposal may include.
The
final Development, with the possibility of extending above any ground level
circulation space, will contribute to the final volumetric profile of the
resulting Facility. Such configuration
must provide year round shelter from the elements for docking, vehicle
movements, and goods handling.
Objectives
In
its consideration in awarding the Concession for the Site, the Government aims
to attain the following strategic benefits from this RFP process and the
eventual grant of the Concession:
- Proactively
sustain the GoM vision for the growth and development of Maltese enterprises
both national and beyond our shores;
- Offer
specialised services to national and international industry;
- Achieve
profitable management of the Site in a manner that ensures that users and the
GoM are satisfied with the level and quality of the services and facilities
provided;
- Upon the
lapse of the Concession Period or earlier termination thereof, take possession
of the Site as fully operational;
- In the
interest of competitiveness and long-term sustainability, the management and
operation of the facilities in a lean dimension and on the basis of private
sector management principles and efficient work practices;
- Complement
the facilities with the strategic commitment, vision and capability of
experienced international players in order to tap new opportunities for
on-going business growth; and
- Maximize the
spill-over benefits to the Maltese economy through increased investment
opportunities and sustainable employment prospect.
In
taking responsibility for the Site pursuant to the RFP process and the award of
the Concession, the Successful Proponent shall be required to:
- Develop
and manage the Site in line with Good Industry Practise with a view to ensuring
long-term sustainability;
- Develop
and manage the Site in compliance with all Maltese and European Community Laws
including inter alia, environment and planning legislation in force at the
time;
- Run
the Facility in compliance with relevant Maltese and international regulatory
standards and in accordance with Good Industry Practise, including but not
limited to environment protection, security, food standards and occupational
health and safety and also to obtain the required permits from the relevant
Regulatory Authority;
- The
Successful Proponent shall be required to complete the Development to be
carried out within the Site within thirty six (36) months to be reckoned from
the date of signing the Concession Agreement(s) and shall further be required
to commence the operation of the Facility immediately upon completion of the
Development;
- Throughout
the Concession Period grant free access to representatives of GoM/ME/Regulatory
Authority as the case may be for inspections of the Site both during the
development and operational phases of the Concession, which inspections shall
be carried in full adherence to any Applicable Law;
- Develop
and manage the Site with a view to ensuring its long-term sustainability within
the respective market environment; and
- Operate
within the above-stated objectives. The Proponents’ over-arching target shall
be to demonstrate its ability to achieve the best possible overall value for
Malta by providing evidence of:
- a solid
financial standing to cover the investment;
- previous
experience in the running of a logistics hub;
- proven
capability to generate business for the hub;
- a clear
investment concept/ model;
- the
generation of a minimum of 400,000 cubic metres of warehousing space; and
- a
significant contribution to national
Gross Value Added (GVA).
Benefits
The
Design, Construct, Finance, Operate and Maintain an International Logistics Hub
at Hal Far is intended to:
- Provide
customs-related advantages as well as exemptions from Maltese and EU taxes in a
controlled environment;
- Foster
economic activity and employment that could occur elsewhere;
- Inject
increased investment to industries in specialised services and generate
adequate employment prospects and business opportunities; and
- Develop
new and innovative work practices and procedures for diverse new business lines
on a global basis;
- Yield
significant & sustained economic benefits in terms of Gross Value Added
(GVA) contribution, including multiplier effect on other local businesses.
General Process
The
PU is inviting submissions for the RFP from reputable persons and/or entities
with the necessary experience and resources to undertake such task.
It is important that prospective
Proponents who are interest in submitting an RFP Proposal to formally register
their interest with the PU by sending an email at privatisation.meib@gov.mt, expressing their interest to undertake the task.
Once
this initial communication takes place, the PU will forward a process letter
inviting interested parties to collect an authenticated hardcopy version of the
RFP document. The process letter will explain the procedure to be followed. A
receipt will be provided to all those who have formally registered their
interest and collected an authentic hardcopy version of the RFP document.
Only those who have an
official receipt from the PU of their formal registration of their interest and
collected an authentic hardcopy version of the RFP document will be permitted
to submit an RFP Proposal.
The closing date for
prospective Proponents to formally register their interest with the PU (through
email) expressing their interest to undertake the task is Thursday 1st December 2016 (23:59hours CET). The closing date for the submission of the RFP
Proposals is Friday 13th January 2017 (12:00hours CET).