Works to transform the Ta' Qali crafts village into a modern outfit have started after years of aborted plans and failed promises.
Economy Minister Chris Cardona said the government will invest €10 million of EU funds and the project will be complete by the end of next year.
Private investors have agreed to invest another €4 million and rebuild their workshops according to an approved master plan.
"During the last administration we revisited plans that had been in the pipeline since 1992, reached an agreement with tenants and applied for EU funds," Dr Cardona said.
The project aims to turn the area into a destination for Maltese as much as tourists.
Joe Galea, managing director at Heritage Homes, a company based at the crafts village, said he was investing €1.7 million to create an artisan cluster of workshops.
Private investors will have to redevelop their buildings in line with the approved master plan. The government also plans to market the whole site as a single brand.
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