Regulations, 2011

L.N. 276 of 2011

MALTA ENTERPRISE ACT

(CAP. 463)

Assistance to Guest Houses, Hostels, Hotels, Farmhouses,

Snack Bars and Restaurants (Energy Efficiency Measures)

Regulations, 2011

IN exercise of the powers conferred upon him by article 5 of the

Malta Enterprise Act, the Minister of Finance, Investment and the

Economy has made the following regulations:-

(1) The title of these regulations is the Assistance to Title and

Guest Houses, Hostels, Hotels, Farmhouses, Snack Bars and commencement.

Restaurants (Energy Efficiency Measures) Regulations, 2011.

(2) These regulations shall be deemed to have come into force

on the 1st January, 2011.

In these regulations, unless the context otherwise requires

Interpretation.

"the Act" means the Malta Enterprise Act;

"the Corporation" means the Malta Enterprise Corporation

established under the Act;

"eligible costs" means expenditure of a capital nature as may be

prescribed in the guidelines;

"eligible project" means a project leading to a decrease in the

utilisation of energy generated from fossil fuels through a more

efficient use of energy resources or through alternative energy

solutions in the operation of a guest house, hostel, hotel, farmhouse,

snack bar or restaurant, as approved by the Corporation under these

regulations and as may be prescribed in the guidelines, in respect of

which eligible costs have been incurred and which is retained within

the business for at least five years from the completion of the project

or such other shorter period as the Corporation may deem appropriate

in view of the nature of the project

Provided that a project shall not be treated as an eligible project

if it is linked to

(a)

purchase of land or property;

(b)

wages;

(c)

operating expenses;

(d)

the acquisition of second hand equipment;

"farmhouse" means a holiday premises which is constructed and

finished to represent a typical Maltese farmhouse, located in an area

compatible with a farmhouse environment;

"guidelines" means such guidelines as may be published by the

Corporation from time to time in terms of the Act;

"guest house" means a guest house as defined and licensed to

operate as such in terms of the Malta Travel and Tourism Services

Act;

"hostel" means a hostel as defined and licensed to operate as

such in terms of the Malta Travel and Tourism Services Act;

"hotel" means a hotel as defined and licensed to operate as such

in terms of the Malta Travel and Tourism Services Act;

"restaurant" means a catering establishment as defined under

the Catering Establishments Regulations, and licensed to operate as

such in terms of the Malta Travel and Tourism Services Act;

"snack bar" means a catering establishment as defined under the

Catering Establishments Regulations, and licensed to operate as such

in tersm of the Matla Travel and Tourism Services Act;

"undertaking" means on undertaking as defined in the Act.

Where the Corporation is satisfied that an undertaking

which carries out, in Malta, a trade or business consisting mainly of

the operation or management of a guest house, hostel, hotel,

farmhouse, snack-bar or a restaurant, carries out an eligible project,

as shall have been approved by the Corporation, the Corporation may

grant to the said undertaking a soft loan, to finance eligible costs to be

incurred as part of such an eligible project, as may be prescribed in

the guidelines.

(1) The soft loan referred to in regulation 3 shall not

exceed four hundred thousand euro (€400,000) and may cover up to

80% of the total eligible costs, as may be prescribed in the guidelines.

(2) The rate of interest charged by the Corporation on loans

granted in terms of this regulation shall not be less than 1.5% over the

discount rate charged by local commercial banks as established in the

guidelines.

(3) The Corporation may, in its absolute discretion, require

that the repayment of principal and interest in the case of a soft loan

be secured by a general hypothec over the property, present and

future, of the undertaking receiving the soft loan in addition to any

other security which the Corporation may require.

(4) The repayment of any soft loan granted under the

provisions of this regulation and the payment of interest thereon shall

be made within a period of time and at instalments to be agreed upon

with the Corporation as may be prescribed in the guidelines

Provided that such period shall in no case exceed five

years from the date on which the first loan amount was received by

the undertaking.

(5) The repayment of any soft loan granted under the

provisions of this regulation may only be withdrawn if an actual

expenditure, equivalent to the percentage of the total value of cost

items that is not covered by the loan, has been paid to or

simultaneously with the utilisation of the loan.

(6) Where the Corporation has approved that a soft loan be

granted by instalments, and any part of such a soft loan has not yet

been advanced, the Corporation may, without prejudice to any other

remedy, withhold any portion of the soft loan still outstanding if -

(a)

any sum of money, whether principal or interest, due

in respect of any loan provided under this regulation, remains

unpaid; or

(b) any prior loan made under this regulation has not

been applied for the purpose for which it was made or has not

been expended in a careful, timely and economical manner; or

(c)

the undertaking has gone into liquidation or has

become insolvent or has assigned property for the benefit of

creditors; or

(d) there has been a breach or non-observance of any

condition attached to the loan; or

(e)

the eligible project has been implemented without

having obtained the necessary permits as prescribed in the

guidelines; or

(f)

the eligible project has not been implemented within

twelve months from the date of issue of the relevant approval by

the Corporation.

(1) Any assistance that may be provided under these

regulations shall be in conformity with the de minimis Regulation as

defined in Commission Regulation (EC) No. 1998/2006 of 15

December 2006 on the application of Articles 87 and 88 of the Treaty

to de minimis aid.

(2) The de minimis Regulation establishes that an undertaking

may receive a total amount of up to two hundred thousand euro

(€200,000) of de minimis aid over a period of three consecutive fiscal

years. This maximum threshold includes all aid granted as de minimis

aid from the Corporation as well as from any other entity.

Applications for assistance under these regulations shall

reach the Corporation by not later than the 31st December, 2012.

€0.36