Ħal Far motorsport hub will cost €78 million, PN MP reveals
David Agius tells parliament of unpublished report putting big price tag on project
An opposition MP has published a report detailing the estimated €78 million cost of building a new Ħal Far racetrack and other “motorsport hub” facilities.
The estimated cost is almost four times higher than the €20 million price tag previously attached to the racetrack alone by Prime Minister Robert Abela.
Nationalist MP David Agius told parliament this week that the government had commissioned the report, which was never published, to allay concerns that the public money being pumped into the track could fall foul of EU state aid rules.
Agius indicated that payments for the project had been put on hold by the National Development and Social Fund (NDSF) until the state aid issue had been cleared.
The report by consultancy firm E-Cubed concludes that the “weak” financial returns from the project mean it is not a venture that would likely have been supported by private sector investment alone.
“Support from public sources is therefore required to undertake this project. This is typical of the situation in a number of similar installations across the European Union,” the report says.
According to the report, the project “demonstrates robust economic value” despite the weak financial return.
The project will also benefit the economy through employment generation and saved costs of travelling abroad by local motorsport enthusiasts, the report says.
“The net present value of economic benefits thus generated is estimated to amount to €9.7 million,” according to the report.
The report further argues that public investment in the track is justified not only on economic grounds but also for its alignment with “regional development, skills training and tourism diversification”.
“The project presents a strategic opportunity to position Malta as a regional hub for grassroots motorsport and specialised automotive services,” the report says.
How the money will be spent
Agius hinted in parliament that the €78 million price tag was proving problematic within cabinet, with Finance Minister Clyde Caruana questioning whether the money could best be spent elsewhere.
While the main circuit infrastructure and construction is expected to cost €28 million, building the adjacent quarter mile and karting tracks carry a price tag of a further €23.6 million.
Equipment, finishing, professional fees and other costs take the final tally for the entire motorsport hub up to €78.2 million.
Caruana had promised back in 2022 that the track would be completed “in this legislature”, which is set to come to an end in 2027.
The track is being built to FIA Grade 3 standard, meaning it will be able to host national and international events for categories such as touring cars and GT4.