LUQA - SOCIAL HOUSING

Promoter – Financial Intermediary

MALITA INVESTMENTS PLC

Location

• Malta

Description

Construction of social housing units to be fully implemented by Malita Investments in the period 2024-2027 in the city of Luqa, Malta.

Additionality and Impact

The Project comprises the construction of some 267 new social housing units, contributing to the promotion of Integrated Urban Development. The investment schemes will be part of well-defined integrated local urban development plans for the development of sustainable communities and contribute to the promotion of social mix addressing strong social housing demand in Malta. It will also contribute to a more balanced local residential market with sufficient housing supply meeting existing need from low and middle income households. The EIB financing will tackle the market gap resulting from an insufficient affordable housing supply by offering a sizeable loan with long maturity and at attractive financing costs, essential to keep rent levels low. The EIB brings a comprehensive financial contribution to the investment programme by providing Malita with a substantial financial benefit and customized terms. Moreover, EIB's expertise in this kind of financing (availability, grace period, tranching) would allow the structuring of the loan to best fit Malita and Project financial needs.

Objectives

The project will concern the financing of the construction of social housing units in the city of Luqa, located in the southern region of Malta. The project will be located in an urbanised site of 10,000 m², already comprising all necessary infrastructure (sewage, water, electricity, roads, etc). It consists of three residential blocks, comprising 89 dwellings each, for a total of 267 dwellings. The project will contribute to the alleviation of the current shortages in social housing supply.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

EUR 22 million

Total cost (Approximate amount)

EUR 44 million

Environmental aspects

Compliance with the relevant EU Directives will be verified during appraisal stage: EIA Directive 2011/92/EU amended by the EIA Directive 2014/52/EU, SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed. It is envisaged that the project will contribute to urban regeneration and sustainable urban development in local neighbourhoods, generating significant positive social and economic benefits, including better health and living conditions for lower income groups, job creation during implementation and the promotion of social mix.

Procurement

The Bank will require the Promoter to ensure that contracts for the implementation of the project are tendered in accordance with the relevant applicable EU procurement legislation (Directives 2014/24/EU where applicable, or 2014/25/EU where applicable, and/or 2014/23/EU where applicable, as well as Directives 89/665/EEC and 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 15/03/2024