Minister for the Economy, Investment and Small Businesses Silvio Schembri announced the launch of the Cleaner Construction Vehicle Scheme aimed at supporting operators within the construction industry to replace existing machinery with new, more environmentally friendly machinery/equipment. An overall budget of €4,000,000 has been allocated for this incentive, while each beneficiary can benefit up to €200,000.

Minister Silvio Schembri commented, “Today the construction industry has grown extensively and has diversified into several areas. It is the livelihood for thousands of people working in the industry, which, among others, include those working in quarries, construction, transport, haulers, plasterers and painters, tilers, and several other related activities.

“This industry is indisputably one of the drivers of our country’s economy, which in recent years has grown exponentially, in line with the rapid economic growth experienced by our country. However, advancement brings its own challenges and therefore it is appropriate that we ensure that the changes required for the industry to positively progress are effected with the least negative impact on the environment. 

“We therefore encourage operators to seize this unique opportunity and be part of this evolution which aims for a modernised and more environmentally friendly construction industry. This scheme will also create more economic activity for the suppliers of such vehicles and machinery, which indirectly will help this industry holistically.” 

Minister Schembri thanked the Malta Developers’ Association for their feedback and cooperation to help incentivise operators in this sector to remove old vehicles and machinery from our roads and replacing them with modern equipment with less emissions and safer technology. 

The objective of the Cleaner Construction Vehicle Scheme is to encourage and support operators in the construction industry to scrap and replace old machinery/equipment utilised in their activity and invest in new equipment that generates less environmentally harmful emissions.  

Abovementioned activity may include construction of immovable property, excavation, nd demolition and transportation of material related to the construction of immovable property. Quarry and batching plant owners/operators, building and finishing contractors, and providers of rented equipment to operators are encouraged to apply for this incentive.

A cash grant covering up to 40% of costs will be recompensated to eligible beneficiaries for the   replacement costs of new machinery/equipment, which will supplant construction machinery/equipment manufactured prior to 2015 that will result in a reduction in harmful emissions. 

A cash grant covering up to 40% of costs for the procurement of new machinery/equipment used exclusively to reduce harmful emissions generated by construction activities will be awarded to the eligible applicants. 

Meanwhile, applicants who intend to replace construction machinery/equipment that was manufactured prior to 2015, with second-hand machinery/equipment which will result in a reduction in harmful emissions, will be recompensed with a cash grant covering up to 25% of costs. However, the abovementioned second-hand equipment must have been manufactured after 2016, has not been previously used in Malta and is certified to meet the original environmental parameters as manufactured by a certified engineer.

All eligible beneficiaries will receive additional support of up to 20% if the replacement machinery/equipment is powered by an electric engine (battery) or 10% if the machinery/equipment is powered by a hybrid engine.

In order to benefit from this assistance, one must scrap the old vehicle or machinery and would need to provide a destruction certificate to Malta Enterprise. 

Application forms need to be submitted prior to the purchasing of machinery/equipment. Official documentation may be downloaded from the Malta Enterprise website and submitted through the corporation’s client portal. 

Applications will be processed on first-come first-served basis until budget allocated for this measure is fully utilised. 

Scheme will be activated on 1st December 2020 until 31st May 2021.