MDB Supports €10m Sustainable Investment at Former Naval Hospital
Malta Development Bank (MDB) has mobilised €10 million through its Guaranteed Co-Lending Scheme for Sustainability to support the rehabilitation of the former Royal Naval Hospital in Mtarfa. The financing is specifically for eligible climate action, environmental sustainability and infrastructure investments within the wider project.
Following its rehabilitation, the building is projected to use approximately 75% less primary energy. Measures supporting this reduction include solar panels, high-efficiency air-conditioning with centralised controls, smart water-heating systems, and lighting controlled by motion sensors and timers. The projection is based on an Energy Performance Certificate prepared by an Energy Performance of Buildings (EPB) assessor.
MDB’s assessment found that the project met the relevant green criteria for its European Investment Bank-supported financing and the European Investment Fund’s Sustainability Guarantee.
The financing package comprises €5 million in co-financing from MDB and €5 million from a commercial bank. MDB also guarantees part of the commercial bank’s share, reducing its exposure and helping to facilitate the investment. MDB’s support therefore takes the form of repayable financing and a guarantee.
The building served as a state secondary school and temporarily accommodated public-sector offices. Following the school’s relocation, the premises became substantially underused. The Planning Authority subsequently granted permits for the building’s rehabilitation and conversion for use as the permanent campus of Haileybury Malta.
The bank’s Chief Executive Officer Alison Micallef said: “Financing structures of this kind give viable green projects a clear route from planning to delivery and connect European resources with commercial financing to deliver measurable environmental outcomes.”
MDB Chairperson Leo Brincat said: “The renewal of this historic site breathes new life into an important Mtarfa building, securing its future use while demonstrating how sustainable infrastructure investment can preserve our heritage and support long-term development.”
MDB welcomes discussions with businesses developing eligible investment plans. Enquiries may be sent to business.mdb@mdb.org.mt.
