A European Investment Bank (EIB) office will be inaugurated in Valletta on Wednesday to help projects in Malta get funding while boosting local businesses, according to the head of the organisation.

Speaking to Times of Malta, EIB president Nadia Calviño said the move would “significantly enhance our on-the-ground presence” in Malta, a "very important partner” for the bank.

Jointly owned by EU member states, the EIB provides funding for projects that help the union achieve its aims, such as helping to combat climate change or delivering economic growth.

Stressing the importance of direct contact with stakeholders, Calviño said the EIB’s presence in Malta would “reinforce our partnership with local authorities and boost support for businesses.”

“Our presence will also make it easier for Maltese projects to access funding and contribute to sustainable growth”, she said.

The bank’s work began in Malta in 1979, when it funded the expansion of Grand Harbour’s facilities to the tune of €8 million.

Describing this year as a “milestone” in recognition of the 45 years since that initial investment, Calviño said the bank’s investments in Malta had reached €1 billion.

Pointing to EIB funding for the Parliament building and nearby Teatru Rjal, increased support for small and medium-sized businesses and around 750 new affordable homes, Calviño said the bank was “making a tangible difference in the lives of Maltese citizens.”

The bank chief said that with its new office in Valletta, the EIB aimed to step up its involvement in Malta in areas such as the impact of climate change and addressing water shortages.

The EIB has provided funding for social housing projects in Malta. DOI photo.

Calviño said talks with Prime Minister Robert Abela and Finance Minister Clyde Caruana on Wednesday morning would cover the EIB’s work with the government to "accelerate Malta’s green and digital transition and enhance affordable housing.

She said the bank also wanted to “maximise the impact of EU cohesion funds” — used to level the playing field across the EU by directing finance to countries earning less per capita than 90% of the EU average — by merging them with EIB resources.

Such a move would “unlock additional investments and drive transformative projects nationwide,” she said, adding the EIB had backed 4,000 companies and created over 18,000 jobs in Malta.

Asked how local businesses would be directly affected by the new Valletta office, Calviño said the head of the bank in Malta, Lawrence Walsh, would be able to help companies find the right EIB contacts for their ideas and undertake due diligence checks.

“He will serve as the primary local liaison, ensuring that Maltese businesses have a direct and accessible interface with the EIB Group”, she said.

Turning to the bank’s wider aims, Calviño said over the following years it wanted to boost investment for start-ups and "reduce red-tape... so innovation can flourish across the EU.”

It remains to be seen whether the new EIB offices in Malta will improve the country’s absorption of EU funds, which a report earlier this year showed were the worst across the bloc. 

With only 85% of funds absorbed by the end of last year this was well below the 94% EU average, with the report noting that local authorities point to “the rigidity of EU rules” as an obstacle to absorbing funds.