Expert evaluation network delivering policy analysis on the performance of cohesion policy 2007-2013 : task 2 : country report on achievements of cohesion policy : Malta

Abstract

The Maltese development pattern is influenced by the typical features of small island states: scarce natural resources, high density of population, lack of critical mass in infrastructure investment, high external dependency etc. These features have an impact on transport, the environment and the sustainability of tourism and make it necessary to strengthen the Island’s knowledge-based economy in order to promote competitiveness. EU Cohesion Policy contributes considerably to tackling these issues through support from the ERDF and Cohesion Fund, while the Island participates in cross-border, trans-national and interregional cooperation programmes. The priorities of these programmes are highly complementary and consistent with the key development challenges: the support is concentrated mainly on sustainable development and environmental protection, (e.g. waste management and water treatment plants), knowledge and innovation as well as transport. Malta has been allocated EUR 728 million of ERDF and Cohesion Fund for the 2007-2013 period. Environment-related investment represents a key priority and accounts for 38% of the total allocation; 25% of the total ERDF has been allocated to accessibility and transport; around 22% has been allotted to territorial development and 13% to support enterprise environment. The overall commitment rate as at end 2009 amounted to around 50% of total funding allocated and during 2009 there were 229 projects (including aid schemes) being implemented. In 2009 the Programme started producing its first outputs and results on the ground: first signs of construction of infrastructure; equipment being procured and s mobilisation of much needed support for enterprises. The recent economic crisis did not change the strategy and the objectives of the OP, which are arguably well suited for fostering the upturn in the economy, thanks to the focus on transport infrastructure, environment, energy territorial development (including tourism) and enterprise support. To boost investment in enterprises and mitigate the consequences of the crisis, in some cases, the allocation of the funds was diverted from public infrastructure to private sector support (e.g. EUR 12 million were allocated to a number of aid schemes for firms, focusing on e-business development, R&D, international competitiveness, innovation and energy). Evidence on performance of intervention is limited and it is too early to identify examples of good practice. The Mid-Term Evaluation of the ERDF OP is currently being carried out and some results can be expected by the end of the year. The ex ante evaluation of the OP, carried out initially, is mostly an analysis of the coherence of the strategy and did not attempt to assess the potential effects of the programme. An analysis of the effectiveness of projects co-financed by the Structural Funds in 2004-2006 examined the achievements of a sample of 13 initiatives, focusing mainly on recommendations for the future in terms of monitoring and collection of data. Some of the main future challenges facing EU Cohesion Policy include: continue to tackle the lack of innovation and entrepreneurial culture and increase the capacity of Malta to generate research and apply new technologies; increase awareness of environmental problems among people and implement larger projects with a significant impact on environmental protection; develop an evaluation culture to systematically assess the performance of policy; improve cooperation between administrative bodies