EN EN

EUROPEAN COMMISSION

Brussels, 13.7.2026 COM(2026) 376 final

2026/0205 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 5 October 2021 on the approval of the

assessment of the recovery and resilience plan for Malta

{SWD(2026) 196 final}

EN 1 EN

2026/0205 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 5 October 2021 on the approval of the

assessment of the recovery and resilience plan for Malta

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of

12 February 2021 establishing the Recovery and Resilience Facility1, and in particular Article

20(1) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) Following the submission of the national recovery and resilience plan (‘RRP’) by

Malta on 13 July 2021, the Commission proposed its positive assessment to the

Council. On 5 October 2021, the Council approved the positive assessment by means

of an implementing decision2 (‘the Council Implementing Decision of

5 October 2021’). The Council Implementing Decision of 5 October 2021 was

amended by the Council Implementing Decisions of 14 July 20233, 20 June 20254 and

12 December 20255.

(2) On 26 June 2026, Malta made a reasoned request to the Commission to make a

proposal to amend the Council Implementing Decision of 5 October 2021 in

accordance with Article 21(1) of Regulation (EU) 2021/241 on the grounds that the

RRP is partially no longer achievable because of objective circumstances. On that

basis, Malta has submitted an amended RRP.

Amendments based on Article 21 of Regulation (EU) 2021/241

(3) The amendments to the RRP submitted by Malta because of objective circumstances

concern 20 measures.

(4) Malta has explained that one measure is partially no longer achievable due to

unexpected delays in the construction works. This concerns measure C1-I1 Investment

in the renovation and greening of public and private sector buildings. On this basis,

1 OJ L 57, 18.2.2021, p. 17, ELI: https://eur-lex.europa.eu/eli/reg/2021/241/oj. 2 ST 11941/21; ST 11941/21 ADD 1. 3 ST 11202/23; ST 11202/23 ADD 1. 4 ST 9589/25; ST 9589/25 ADD 1 and ST 9589/25 ADD 1 COR. 5 ST 15661/25; ST 15661/25 ADD 1 and ST 15661/25 ADD 1 REV.

EN 2 EN

Malta has requested that that measure be amended. The Council Implementing

Decision of 5 October 2021 should be amended accordingly.

(5) Malta has explained that one measure is partially no longer achievable due to

unexpected procurement delays. This concerns measure C6-I1 Digitalisation in the

justice system. On this basis, Malta has requested that that measure be amended. The

Council Implementing Decision of 5 October 2021 should be amended accordingly.

(6) Malta has explained that two measures have been amended to implement better

alternatives in order to achieve their original ambition. This concerns C6-R1 Reform

the method of appointment and dismissal of the judiciary and C6-R2 Create a separate

prosecution service. On this basis, Malta has requested that those measures be

amended. The Council Implementing Decision of 5 October 2021 should be amended

accordingly.

(7) Malta has explained that 15 measures have been amended to implement better

alternatives that allow the administrative burden to be reduced and simplify the

Council Implementing Decision of 5 October 2021, while still achieving the objectives

of those measures. This concerns measures C1-I2 Investment in the renovation and

retrofitting of one public hospital block, C1-I5 Renewable energy investments in

public spaces, C2-R1 Stimulating the adoption and implementation of policies

promoting the sustainability of the transport sector, including by encouraging the use

of collective and multimodal transport, C2-R6 Enhanced mobility management in the

public service, C2-R7 Measures to reduce traffic congestion, C2-I2 Enhancing the

uptake of electric vehicles in the private sector, C3-I2 Digitalisation of the Merchant

Shipping Directorate within Transport Malta, C3-I3 Further digitalisation and

modernisation of the public administration, C3-I4 Rolling out measures to intensify

the digitalisation of the private sector, C3-I5 Mobile digitalisation of urban ecology,

C4-I1 Establishment of a Blood, Tissue and Cell Centre for Malta, C5-R3 New

education pathways towards inclusive and quality education, C5-R4 An education

policy monitoring system, C5-R5 Reinforcing the resilience of the labour market and

C7-I2 Investment in the renovation and greening of private sector buildings. On this

basis, Malta has requested that those measures be amended. The Council

Implementing Decision of 5 October 2021 should be amended accordingly.

(8) Following the decrease in the level of implementation of measures in accordance with

Article 21 of Regulation (EU) 2021/241, Malta has requested to use the resources

freed up by the decrease in the level of their implementation to increase the level of

implementation of one measure. This concerns the decrease in the level of

implementation of measures C1-I1 Investment in the renovation and greening of

public and private sector buildings and C6-I1 Digitalisation in the justice system. On

this basis, Malta has requested that the level of implementation of one measure (C7-I1

Investments in distribution centres and cables) be increased. The Council

Implementing Decision of 5 October 2021 should be amended accordingly.

Corrections of clerical errors

(9) One clerical error has been identified in the text of the Council Implementing Decision

of 5 October 2021, affecting Component 2: Decarbonising transport. The Council

Implementing Decision of 5 October 2021 should be amended to correct that clerical

error that does not reflect the content of the RRP submitted to the Commission on

31 October 2025, as agreed between the Commission and Malta. This clerical error

relates to the description of Component 2: Decarbonising transport. This correction

does not affect the assessment or the implementation of the RRP.

EN 3 EN

Commission’s assessment

(10) The Commission has assessed the amended RRP against the assessment criteria laid

down in Article 19(3) of Regulation (EU) 2021/241.

Contribution to the REPowerEU objectives

(11) In accordance with Article 19(3), point (da), of, and criterion 2.12 of Annex V to,

Regulation (EU) 2021/241, the REPowerEU chapter is expected to effectively

contribute to a large extent (rating A) to energy security, the diversification of the

Union’s energy supply, an increase in the uptake of renewables and in energy

efficiency, an increase of energy storage capacities or the necessary reduction of

dependence on fossil fuels before 2030.

(12) Malta has requested to use the resources freed up by the decrease in the level of

implementation of two measures to increase the level of implementation of one

measure. This concerns C7-I1 Investments in distribution centres and cables. This

does not affect the previous positive assessment of the REPowerEU chapter, which

continues to address the uptake of renewables, energy efficiency and the reduction of

dependence on fossil fuels in Malta.

Contribution to the green transition including biodiversity

(13) In accordance with Article 19(3), point (e), of, and criterion 2.5 of Annex V to,

Regulation (EU) 2021/241, the amended RRP contains measures that contribute to a

large extent (rating A) to the green transition, including biodiversity, or to addressing

the challenges resulting therefrom. The measures supporting climate objectives

account for an amount which represents 63,6 % of the amended RRP’s total allocation

and 100 % of the total estimated costs of measures in the REPowerEU chapter

calculated in accordance with the methodology set out in Annex VI to Regulation

(EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the

amended RRP is consistent with the information included in the National Energy and

Climate Plan 2021-2030.

(14) The measures in the amended RRP continue to significantly contribute to the green

transition. The green contribution of the amended RRP has increased from 62,0 % to

63,6 %. That increase was the result of the scaling up of measure C7-I1 Investments in

distribution centres and cables, which outweighed the scaling down of measure C1-I1

Investment in the renovation and greening of public and private sector buildings.

(15) The measures related to the green transition in the amended RRP, including the

REPowerEU chapter, have a lasting impact as the measures aim to promote the uptake

of renewables in Malta, reducing Malta’s dependence on fossil fuels and increasing

energy efficiency in buildings. As a result, those measures also contribute to achieving

the 2030-2050 climate targets and the objective of EU climate neutrality by 2050. The

scope of the amendments does not change the overall assessment of this criterion.

Contribution to the digital transition

(16) In accordance with Article 19(3), point (f), of, and criterion 2.6 of Annex V to,

Regulation (EU) 2021/241, the amended RRP contains measures that contribute to a

large extent (rating A) to the digital transition or to addressing the challenges resulting

from it. The measures supporting digital objectives account for an amount which

represents 26,0 % of the amended RRP’s total allocation calculated in accordance with

the methodology set out in Annex VII to that Regulation.

EN 4 EN

(17) The measures in the amended RRP continue to significantly contribute to the digital

transition. The amendment of the contribution to the digital transition relates to the

decrease in allocation for one measure, namely C6-I1 Digitalisation in the justice

system. Overall, due to this change in the digital allocation, the amendment to Malta’s

RRP entails a net decrease in the overall contribution to the digital target of the RRP

by 0.9 percentage points, from 26,9 % to 26,0 %. The limited scope of this amendment

does not change the overall assessment of this criterion.

Costing

(18) In accordance with Article 19(3), point (i), of, and criterion 2.9 of Annex V to,

Regulation (EU) 2021/241, the justification provided in the amended RRP on the

amount of the estimated total cost of the RRP is to a medium extent (rating B)

reasonable and plausible, is in line with the principle of cost efficiency and is

commensurate to the expected national economic and social impact.

(19) According to the information provided, the assessment of the cost estimates for the

existing measures whose modifications entailed a new cost assessment shows that

most of the costs are reasonable and plausible. In only a few cases, the methodology

and calculations used to make the cost estimates were not as solid. This precludes a

rating of A for this assessment criterion. Furthermore, the changes in the cost

estimates for the amended measures were justified, proportional to the new revised

measures and supported by detailed calculations and evidence, and as such the

reasonability and plausibility of those cost estimates were not altered compared to the

original RRP. Finally, the amount of the estimated total cost of the RRP is in line with

the principle of cost efficiency and commensurate with the expected national

economic and social impact.

Any other assessment criteria

(20) The Commission considers that the amendments put forward by Malta do not affect

the positive assessment of the RRP set out in the Council Implementing Decision of

5 October 2021 on the approval of the assessment of the RRP for Malta regarding the

relevance, effectiveness, efficiency and coherence of the RRP against the assessment

criteria laid down in Article 19(3), points (a), (b), (c), (d), (db), (g), (h), (j) and (k).

Positive assessment

(21) Following the positive assessment by the Commission of the amended RRP, with the

finding that the RRP satisfactorily complies with the criteria for assessment set out in

Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that

Regulation, the reforms and investment projects necessary for the implementation of

the amended RRP, the relevant milestones, targets and indicators, and the amount

made available from the Union for the implementation of the amended RRP should be

set out.

Financial contribution

(22) The estimated total costs of Malta’s amended RRP is EUR 329 083 116. As the

amount of the estimated total cost of the amended RRP is higher than the updated

maximum financial contribution available for Malta, the financial contribution

determined in accordance with Article 4a of Regulation (EU) 2021/1755 of the

EN 5 EN

European Parliament and of the Council6, and with Article 20(4) and Article 21a(6) of

Regulation (EU) 2021/241 that is allocated for Malta’s amended RRP should be equal

to EUR 328 230 928. Therefore, the financial contribution made available to Malta

remains unchanged.

(23) The Council Implementing Decision of 5 October 2021 should therefore be amended

accordingly. For the sake of clarity, the Annex to the Council Implementing Decision

of 5 October 2021 should be replaced entirely.

(24) This Decision should be without prejudice to the outcome of any procedures relating

to the award of Union funds under any Union programme other than the Facility or to

procedures relating to distortions of the operation of the internal market that may be

undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override

the requirement for Member States to notify instances of potential State aid to the

Commission under Article 108 of the Treaty.

HAS ADOPTED THIS DECISION:

Article 1

Approval of the assessment of the RRP

The assessment of the amended RRP for Malta on the basis of the criteria provided for in

Article 19(3) of Regulation (EU) 2021/241 is approved.

Article 2

Amendments

The Council Implementing Decision of 5 October 2021 on the approval of the assessment of

the recovery and resilience plan for Malta is amended as follows:

the Annex is replaced by the text set out in the Annex to this Decision.

Article 3

Addressee

This Decision is addressed to the Republic of Malta.

Done at Brussels,

For the Council

The President

6 Regulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021

establishing the Brexit Adjustment Reserve (OJ L 357, 8.10.2021, p. 1, ELI: https://eur-

lex.europa.eu/eli/reg/2021/1755/oj).

EN EN

EUROPEAN COMMISSION

Brussels, 13.7.2026 COM(2026) 376 final

ANNEX

ANNEX

to the

Proposal for a COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 5 October 2021 on the approval of the

assessment of the recovery and resilience plan for Malta

{SWD(2026) 196 final}

1

ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND

RESILIENCE PLAN

1. DESCRIPTION OF REFORMS AND INVESTMENTS

A. COMPONENT 1: ADDRESSING CLIMATE NEUTRALITY THROUGH ENHANCED ENERGY

EFFICIENCY, CLEAN ENERGY AND A CIRCULAR ECONOMY

This component of the Maltese recovery and resilience plan (RRP) contributes to addressing

challenges related to the steep increase in energy consumption and waste generation resulting from

a rapid population, employment and GDP growth in recent years. Specific characteristics of Malta,

including its small size, high population density, limited land space, lack of economies of scale, its

dependence on single distributors and suppliers, as well as the scarcity of natural resources, all

exacerbate these challenges.

The objectives of the component are to invest in the decarbonisation of a number of buildings,

provide renewable energy solutions in public spaces, whilst introducing reforms to develop a long-

term building renovation strategy and improve waste management.

The investments consist of the renovation of a number of private sector and public buildings, public

schools and hospitals that aim to improve the energy performance of these buildings, reduce energy

consumption and carbon emissions. The component also aims to construct a near carbon-neutral

school that shall also include the use of renewable energy systems, as well as renewable energy

investments in roads and public spaces. The reform to develop a long-term building renovation

strategy complements these investments, by creating a framework that promotes the renovation of

Malta’s building stock by 2050. The component also foresees the design of an enhanced waste

policy, including the re-organisation of waste collection, to limit waste and improve circularity.

The component contributes to addressing the country-specific recommendations on investment in

the green and digital transition, in particular on the clean and efficient production and use of energy

and waste management (country-specific recommendations 3 2019, 3 2020 and 1 and 4 of 2022). It

is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

of the measures and the mitigating steps set out in the RRP in accordance with the DNSH Technical

Guidance (2021/C58/01).

2

A.1. Description of the reforms and investments for non-repayable financial support

Reform C1-R1: Develop a long-term renovation strategy

The objective of the reform is to strengthen the institutional framework and ensure the availability

of skilled workforce in the building and construction industry.

The reform shall establish a Regulator for Buildings, responsible for an integrated regulation and

sustainable management of the building and construction industry having various responsibilities

including issuance and enforcement of good practices guidelines and methodologies, policies and

regulations, providing a centralised office for receipt and processing of complaints and monitoring

the performance, safety and quality of buildings and construction works in Malta. It shall be made

operational by contracting staff and committing financial resources. It shall increase the availability

of qualified staff by extending skilling and upskilling measures to new professional categories with

specific priority related to the acquisition of the necessary skills for supporting the buildings

renovation projects. The reform measures are included in the long-term renovation strategy aiming

to renovate Malta’s building stock with a view to enhancing energy performance, increasing the use

of renewable energy, reducing emissions and achieving decarbonisation of the building stock by

2050.

The reform shall be implemented by 30 June 2023.

Reform C1-R2: Fostering effective waste management through a robust waste governance

framework including reforming the waste collection system

The objective of the reform is to support waste management and further the transition towards a

circular economy.

The reform consists of (i) entry into force of legal act(s) on single use plastic items, (ii) adoption of

a Construction and Demolition Waste Strategy and (iii) actions supporting waste management.

Investment C1-I1: Reduction of primary energy demand of public and private sector buildings

The objective of this investment is to increase energy efficiency and reduce energy demand in

public and private sector buildings.

The investment consists of the reduction of primary energy demand (PED) of at least 30% in public

buildings and the launch of call for applications for grants targeting the renovation of private sector

buildings.

Investment C1-I2: Reduction of primary energy demand of one public hospital block

3

The objective of the investment is to increase energy efficiency, reduce energy demand, lower

carbon emissions, limit energy waste, in one public hospital block.

The investment consists of the reduction of primary energy demand (PED) of at least 30% in block

1 of the Mount Carmel public hospital.

Investment C1-I3: Investment in the renovation, retrofitting and renewable energy in public schools

The objective of the investment is to improve energy efficiency, reduce energy demand, lower

carbon emissions and limit energy waste in two public schools.

The investment shall achieve a reduction of primary energy demand (PED) of at least 30% in two

public schools (St Benedict College Għaxaq Primary School and Gozo College Nadur Primary

School).

It is expected that this measure does not do significant harm to environmental objectives within the

meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the

measure and the mitigating steps set out in the RRP in accordance with the Do No Significant Harm

Technical Guidance (2021/C58/01). In particular, the measure requires the economic operators

carrying out the construction works to ensure that at least 70% (by weight) of the non-hazardous

construction and demolition waste (excluding naturally occurring material referred to in category 17

05 04 in the European List of Waste established by Decision 2000/532/EC of 3 May 2000 replacing

Decision 94/3/EC establishing a list of wastes pursuant to Article 1(a) of Council Directive

75/442/EEC on waste and Council Decision 94/904/EC establishing a list of hazardous waste

pursuant to Article 1(4) of Council Directive 91/689/EEC on hazardous waste (notified under

document number C(2000) 1147)) generated on the construction site shall be prepared for re-use,

recycling and other material recovery, including backfilling operations using waste to substitute

other materials, in accordance with the waste hierarchy, Article 11.2 (b) of Directive 2008/98/EC on

waste and the EU Construction and Demolition Waste Management Protocol.

The investment shall be implemented by 31 December 2023.

Investment C1-I4: Investment in the construction of a pilot near carbon neutral school to serve as a

model for the future and provide a future-proof learning experience to students

The objective of the investment is to build one new near carbon neutral school, St. Theresa College

Msida Primary School, complying with standard requirements of high-energy efficiency, taking into

account resource efficiency, climate adaptation measures, adoption of digital technologies and

affordability. This is meant to serve as a pilot project for future investments and to showcase the

optimisation of indoor health, air quality, high energy efficiency, low carbon emissions and

extensive use of renewable energy systems. Equal access for persons with disabilities shall also be

ensured.

4

The investment shall consist of the construction of a near carbon neutral pilot school amounting to a

total area of approximately 14,499m2, with a capacity of 500 students, 40 classes, a childcare centre

able to take approximately 120 children, a library and a hall. The construction shall ensure that a

Primary Energy Demand of at least 20% lower than the Nearly-Zero Energy Building requirement

is met.

It is expected that this measure does not do significant harm to environmental objectives within the

meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the

measure and the mitigating steps set out in the RRP in accordance with the Do No Significant Harm

Technical Guidance (2021/C58/01). In particular, the measure requires the economic operators

carrying out the construction works to ensure that at least 70% (by weight) of the non-hazardous

construction and demolition waste (excluding naturally occurring material referred to in category 17

05 04 in the European List of Waste established by Decision 2000/532/EC of 3 May 2000 replacing

Decision 94/3/EC establishing a list of wastes pursuant to Article 1(a) of Council Directive

75/442/EEC on waste and Council Decision 94/904/EC establishing a list of hazardous waste

pursuant to Article 1(4) of Council Directive 91/689/EEC on hazardous waste (notified under

document number C(2000) 1147)) generated on the construction site shall be prepared for re-use,

recycling and other material recovery, including backfilling operations using waste to substitute

other materials, in accordance with the waste hierarchy, Article 11.2 (b) of Directive 2008/98/EC on

waste and the EU Construction and Demolition Waste Management Protocol.

The investment shall be implemented by 31 December 2023.

Investment C1-I5: Renewable energy in public spaces

The objective of this investment is to generate green energy through renewable sources.

The investment consists of the installation of photovoltaics in public spaces.

5

A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.1 C1.R.1 Milestone

Entry into force of

the Building and

Construction

Authority Act

Provision in the Act

indicating the entry into force

of the Building and

Construction Authority Act

No. XIV of 2021

Q2 2021

Entry into force of the Building and Construction

Authority Act with the aim to establish a Regulator

for Buildings. The authority shall be responsible

for the regulation, improvement and sustainable

management of the building and construction

industry in Malta.

1.2 C1.R.1 Milestone

Building and

Construction

Authority –

equipped with

resources

The Building and

Construction Authority is

equipped with human and

financial resources

Q1 2023

The Building and Construction Authority shall be

made operational by contracting at least 50 staff

members and with a budget of at least

EUR 2 million.

1.3 C1.R.1 Milestone

Training and

certification of

professionals in

the construction

industry

Launch of training and

certification of professionals

in the construction industry

Q4 2022

Open call for applications for a training and

certification program for professionals and

tradesmen of various levels in the buildings and

construction industry to enhance the capacity for

renovation courses. It shall target an array of

professionals and tradesmen at various levels

within the local construction eco-system.

1.4 C1.R.1 Target

Professionals in

the construction

industry eligible

for a certificate

Number 0 500 Q2 2023 Number of professionals in the construction

industry eligible for a certificate.

1.5 C1.R.2 Milestone

Entry into force of

the updated

Environment

Protection Act

Provision in the Act

indicating the entry into force

of the Act

Q4 2021

Entry into force of the updated Environment

Protection Act whereby the importation,

production, sale and distribution of certain single

use plastic (SUP) items, namely plastic bags,

cutlery, straws and plates shall be prohibited.

6

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.8 C1.R.2 Milestone

Adoption of the

Construction and

Demolition Waste

Strategy for Malta

Online publication of the

Construction and Demolition

Waste Strategy for Malta

Q4 2021

Adoption of the Construction and

Demolition(C&D) Waste Strategy. The Strategy

shall be in line with the EU waste legislation and

EU Construction and Demolition Waste Protocol.

The Strategy shall identify specific measures in

four main priority areas:

1. Planning and design: aiming to tackle the

problem at source by demolishing or constructing

in a sustainable manner;

2. Waste management: measures to improve waste

logistics both at the development site as well as

off-site;

3. Quality management: measures associated with

increasing the confidence in C&D waste

management practices as well as improving the

quality of C&D recycled materials; and

4. Policy and regulatory framework: shall propose

improvements in policy and framework conditions

in order to break the link between development

and waste generation. The proposed regulatory

framework shall comply with the EU legislation

and guidelines on construction and demolition

waste.

The measure shall not lead to a significant increase

in the disposal of waste, or create disincentives to

preparing for reuse and recycling of waste.

7

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.9 C1.R.2 Milestone

Adoption of

standards for the

Construction

Industry

Adoption of standards for the

construction industry Q4 2022

Adoption of standards for the construction

industry. Standards shall concern: 1) Best practices

for (de)construction, aimed at reducing the

Construction and Demolition (C&D) waste

generated and ensuring waste generated is suitable

for treatment in line with the waste hierarchy

provided in the Article 4 of the Directive

2008/98/EC on waste. 2) The classification of

C&D waste by type, material, composition and

weight, aimed to encourage on-site separation as

well as improve the quality of the waste streams

for subsequent re-use or recycling; 3) Appropriate

excavation works, with the aim to re-use excavated

rock for the purposes of construction; 4)

Dimensions of internal and external apertures of

residential dwellings aimed at encouraging the re-

use of fittings as well as reduce diversification

bringing about economies of scale. These

standards shall be incorporated within the

regulatory framework and compliance with these

standards shall be an essential requirement prior to

the issuance of an executable Development Permit.

8

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.10 C1.R.2 Milestone

Entry into force of

a new regulatory

framework for the

management of

construction and

demolition waste

Provision in the new

regulatory framework

indicating the entry into force

of the new regulatory

framework

Q4 2023

Entry into force of a new regulatory framework for

the management of construction and demolition

waste in Malta. The regulatory framework shall be

developed and discussed with actors involved

along the construction and demolition chain. The

regulatory framework shall comply with the EU

waste legislation and EU Construction and

Demolition Waste Protocol and Guidelines.

The regulatory framework shall be structured on

the following main priority areas indicated in the

strategy to ensure a shift towards a more circular

economy:

(i) the prevention and better

management of C&D waste at each

stage of the development, that is at

the demolition, excavation and

construction stages;

(ii) the separation of waste at source;

(iii) promoting the development of

secondary markets for end-of-life

resources, as well as ensuring that

there is a shift from recovery and

disposal to reuse and recycling.

In addition, the said regulations shall clearly

identify and define the roles and responsibilities of

the actors (such as developers, contractors,

architects and property owners) involved in the

sector.

9

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.11 C1.R.2 Milestone

Recovery of

construction and

demolition waste

through

backfilling void

spaces (quarries)

Conditions are in place for the

recovery of construction and

demolition waste in void

spaces

Q4 2022

The following conditions are in place for the

recovery of construction and demolition waste in

void spaces to restore them in their original state

with high environmental standards: (i) the

Environment and Resource Authority, in

collaboration with the Planning Authority has

identified the quarries, which have been declared

as partly exhausted, exhausted or inactive and

determined the volume contained therein; (ii) a set

of terms of reference for the restoration of void

spaces to their original state; and (iii) mechanisms

to incentivise the crushing of material prior to

backfilling, such as including the crushing of

material prior to backfilling as a requirement when

publishing call for tenders involving construction

works by Government entities. The definition of

such mechanisms shall be determined following

consultation with stakeholders, including potential

beneficiaries, the relevant authorities and also

other primary stakeholders. The measure shall not

lead to a significant increase in the disposal of

waste, or create disincentives to preparing for

reuse and recycling of waste. The waste used for

backfilling shall be suitable non-hazardous waste

substituting non-waste materials and shall be

limited to the amount strictly necessary, in line

with Article 3(17a) of Directive 2008/98/EC on

waste.

1.12 C1.R.2 Milestone

Setting up of six

municipal

regional bodies

responsible for

waste collection

across Malta and

Gozo

Responsibility for collection

shifted to regions, including

collection of recyclables and

all waste collection centres

are fully operational

Q4 2022

Responsibility of waste collection shall shift from

68 Local Councils to six regions:

a) Port (including 11 Local Councils),

b) Southern (12 Local Councils),

c) Eastern (12 Local Councils),

d) Western (10 Local Councils)

e) Northern (9 Local Councils),

f) Gozo (14 Local Councils).

The transition of waste collection to six centres is

completed. The six centres are fully operational

and in charge of collecting waste.

10

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.13 C1.R.2 Milestone

Entry into force of

revised legislation

on packaging

material to allow

for the regional

collection of

packaging waste

Provision in the revised

legislation indicating the

entry into force of the revised

legislation

Q4 2022

Entry into force of revised legislation on

packaging material which allows for the regional

collection of packaging waste. This shall build on

the legislation for the regional collection of waste

which was established through the Local

Government Act.

Regional councils shall be responsible for the

logistics to enable economies of scale, whilst the

producers shall be responsible for the financing.

1.15 C1.I.1 Milestone

Contracted

services for the

renovation of

public buildings

Contracts signed for the

procurement of renovation

services for selected public

buildings covered by this

investment

Q2 2023

All contracts signed for the procurement of

renovation services of public buildings with an

area of at least 9 232m2.

1.16 C1.I.1 Target

Reduction of

primary energy

demand in public

buildings

Percentage 0 30% Q4 2025

Reduction of primary energy demand (PED) of at

least 30% in public buildings covering an area of

at least 8 000m2.

1.17 C1.I1 Milestone

Launch of call for

applications for

grants targeting

the renovation of

private sector

buildings 

Grants targeting the

renovation of private sector

buildings, including

commercial and other non-

residential buildings

launched 

Q1 2022

Launch of call for applications for the selection of

applicants for grants targeting the renovation of

private sector buildings for retrofitting and energy

efficiency (including commercial/non-residential

buildings). The area financed under this

investment shall be of at least 40,605m2.  

1.19 C1.I.2 Milestone

Energy

Performance

Audit of Mount

Carmel Public

Hospital

Completion of Energy

Performance and Energy

Audit of Mount Carmel

Public Hospital

Q2 2022

Completion of Energy Performance Audit at

Mount Carmel Hospital in compliance with

Directive 2010/31/EU to establish the Energy

Performance Certificate class of the respective

blocks and identify the applicable Energy

Efficiency renovation measures.

1.20 C1.I.2 Milestone

Contract(s) signed

for the renovation

of block 1 of

Mount Carmel

Public Hospital

Contract(s) signed Q4 2024 Contract(s) signed for the renovation of block 1 of

Mount Carmel Public Hospital.

1.21 C1.I.2 Target

Reduction of

primary energy

demand in block 1

of Mount Carmel

Public Hospital

Percentage 0 30% Q2 2026

Reduction of primary energy demand (PED) of at

least 30% in block 1 of Mount Carmel Public

Hospital.

11

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

1.22 C1.I.3 Milestone

Energy

Performance

Audit of two

Public Schools

Completion of assessment of

overall Energy Performance

and Energy Audit of two

Public Schools

Q4 2021

Completion of energy performance audit of two

public school buildings (St. Benedict College

Għaxaq Primary School and Gozo College Nadur

Primary School) in compliance with Directive

2010/31/EU to establish their Energy Performance

Certificate class and identify applicable Energy

Efficiency renovation measures. Completion shall

mean the delivery of an audit report.

1.23 C1.I.3 Milestone

Contracted

services for the

renovation of two

Public Schools

Contracts signed for the

renovation of two Public

Schools

Q1 2022

All contracts signed for the procurement of

renovation of two public school buildings (St.

Benedict College Għaxaq Primary School and

Gozo College Nadur Primary School) covering a

total area of more than 9 710m2.

The renovation shall achieve a reduction of

primary energy demand (PED) of at least 30%.

1.24 C1.I.3 Target

Reduced primary

energy demand in

two Public

Schools

Percentage 0 30 Q4 2023

Reduction of primary energy demand (PED) of at

least 30% in two public schools (St. Benedict

College Għaxaq Primary School and Gozo College

Nadur Primary School).

1.25 C1.I.4 Milestone

Contracted

services for

construction

works of a near

carbon neutral

school

Contracts signed for the

construction of a near carbon

neutral school.

Q1 2022

Signed contracts for the procurement of

construction works for the near carbon neutral

school.

The construction shall ensure that a Primary

Energy Demand (PED) that is at least 20% lower

than the NZEB requirement is met.

1.26 C1.I.4 Target

Construction of a

near-carbon

neutral school

completed

m2 0 14 499 Q4 2023

Construction works of the near-carbon neutral

school are completed. The school is estimated to

cater for around 500 students and to have a land

surface area of at least 14 499m2. The construction

shall ensure that a Primary Energy Demand (PED)

that is at least 20% lower than the NZEB

requirement is met.

1.27 C1.I.5 Target

Installed

generation

capacity of

photovoltaics in

public spaces

kWp 0 143 Q2 2026 Installed generation capacity of photovoltaics in

public spaces.

12

B. COMPONENT 2: DECARBONISING TRANSPORT

This component of the Maltese RRP contributes to addressing the challenge of road traffic

congestion, greenhouse gas and pollutant emissions, and the need to make the transport sector more

sustainable.

The objective of the component is to shift traffic from road to more sustainable modes and

decarbonise road transport through electrification, in line with Malta’s National Energy and Climate

Plan for 2030, the 2050 Low Carbon Development Strategy, Malta’s National Reform Programme

(2020) and Malta’s National Transport Strategy.

Reforms in this component improve transport planning, expand the use of public transport and

implement actions of the Sustainable Urban Mobility Plan for the Valletta region. They also

designate regeneration areas, promote remote working in the public sector, and increase the

efficiency of the public sector vehicle fleet. Investments comprise a scrappage scheme supporting

the purchase of zero-emission electric vehicles in the private sector and a renewal of the public

sector vehicle fleet with zero-emission electric vehicles.

The component contributes to addressing the country-specific recommendations to focus investment

on the green transition (country-specific recommendation 3 2020), sustainable transport (country-

specific recommendations 3 2019 and 3 2020) and reducing traffic congestion (country-specific

recommendation 3 2019), as well as country-specific recommendations 1 and 4 of 2022 with a

focus on the green transition, sustainable transport and the reduction of traffic congestion.

It is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

of the measures and the mitigating steps set out in the RRP in accordance with the DNSH Technical

Guidance (2021/C58/01).

B.1. Description of the reforms and investments for non-repayable financial support

Reform C2-R1: Supporting the decarbonisation of the transport sector, including by raising

awareness of sustainable or active mobility

The objective of the reform is to support the decarbonisation of the transport sector.

The measure consists of: (i) Malta’s National Household Travel Survey, and (ii) actions undertaken

to raise awareness of sustainable or active mobility.

Reform C2-R2: Promoting further use of collective road public transport

The objective of this reform is to promote the use of road public transport as a means to reduce

emissions and address congestion.

This reform shall consist in the signature of an addendum to the concession agreement between the

Maltese Authority for Transport and the Operator providing public transport services, allowing

access to scheduled fare-free road public transport for all holders of a personalised Tallinja Card.

The reform shall be implemented by 31 December 2023.

13

Reform C2-R3: Expediting the finalisation and implementation of a Sustainable Urban Mobility

Plan (SUMP) for the Valletta Region

The objective of this reform is better transport planning and sustainable mobility solutions.

The measure consists of the online publication of the Sustainable Urban Mobility Plan (SUMP) for

the Valletta Region and the installation of bicycle racks and pumps as eligible interventions under

the Plan, in nine local councils within the Valletta region.

Reform C2-R4: Reducing the socio-economic and environmental impact of vehicles in urban areas

The objective of this reform is to select regeneration areas in urban areas to increase walking,

cycling and the use of public transport.

The measure consists of the signing of an agreement between Transport Malta and the Local

Councils Association for the selection of regeneration areas in urban areas.

Reform C2-R5: Promoting remote working in the public service

The objective of this reform is to enhance remote working in the public sector. The possibility to

work from home or through regional hubs is expected to reduce journeys to and from work and

therefore traffic congestion.

First, this reform shall consist of the establishment of 15 office facilities that enable remote work

for public service officials across the Maltese Islands. Such office spaces are expected to be

operational for remote working and shall accommodate at least 140 workstations in total across the

15 office facilities.

Second, this reform shall consist of the publication of the Remote Working Policy for Government

Employees. The policy shall outline the eligibility criteria, conditions, requirements for approval

and application guidelines governing this initiative that promotes work-life balance and contributes

towards sustainability.

The reform shall be implemented by 31 March 2022.

Reform C2-R6: Mobility in the public service

The objective of this reform is to support mobility management in the Maltese public service.

The measure consists of a study to assess public service transport infrastructure currently in place

across the Maltese Public Service and a digital platform put online to track and book rides with

public service vehicles.

Reform C2-R7: Public services and public bus services

The objective of this reform is to reduce traffic congestion and emissions from road transport.

The reform consists of restricting road cleansing and road marking services to off-peak hours,

increase the frequency of the scheduled public bus service to Ħal Farruġ, an extension of the

14

scheduled public bus route service to Ħal Far, a new scheduled public bus service between

Addolorata and L-Imsida (Universita') and Mater Dei (Sptar), and a new scheduled public bus

service between Ta' Qali and L-Imsida (Universita') and Mater Dei (Sptar).

Investment C2-I2: Enhancing the uptake of electric vehicles in the private sector

The objective of this investment is a shift towards electric mobility and reduce emissions emanating

from the road transport sector in Malta.

This measure consists of grants for the purchase of new electric vehicles in the private sector.

Investment C2-I3: Decarbonising the public service fleet

The objective of this investment is to increase the uptake of electric vehicles in the public service.

The measure consists of the purchase of 250 electric vehicles for use in the Government vehicle

fleet and the scrappage of an equivalent number of vehicles.

15

B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

2.1 C2.R.1 Milestone

National

Household

Travel Survey

Completion of the

National Household

Travel Survey

Q4 2021

The National Household Travel

Survey is completed. This survey

shall aim to quantify current travel

patterns, behaviour and gauge public

opinion on new potential measures

to be included in the updated

Transport Master Plan. Completion

of the survey refers to the moment

where the data collection and

analysis for the survey have been

carried out and findings have been

identified in a written report.

2.2 C2.R.1 Milestone

Raising

awareness of

sustainable or

active mobility

Actions undertaken

to raise awareness

of sustainable or

active mobility

Q4 2025

Actions shall be undertaken to raise

awareness of sustainable or active

mobility.

2.3 C2.R.2 Milestone

Access to fare-

free scheduled

road public

transport for all

holders of a

personalised

Tallinja Card

Addendum to the

concession

agreement signed

Q4 2023

Signature of the addendum to the

concession agreement between the

Maltese Authority for Transport and

the Operator providing public

transport services, allowing access

to scheduled fare-free road public

transport for all holders of a

personalised Tallinja Card.

16

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

2.4 C2.R.3 Milestone

Publication of

the Sustainable

Urban Mobility

Plan for the

Valletta Region

Online publication

of the Sustainable

Urban Mobility

Plan for the Valletta

Region

Q4 2022

Online publication of the

Sustainable Urban Mobility Plan for

the Valletta Region, setting out

eligible interventions to be

implemented through the

Sustainable Urban Mobility Plan.

Eligible types of interventions are:

peripheral parking schemes that

encourage more sustainable modes

of transport including cycling and

walking in the city core; the

localisation and implementation of

local transport hubs, cycling

infrastructure, car sharing among

several people and on demand

transport services; the deployment

and use of electric vehicles and

charging infrastructures in densely

populated urban areas and urban

logistics, such as through the

implementation of last-mile

solutions, including for commercial

purposes and supporting alternative

mobility solutions.

2.5 C2.R.3 Target

Bicycle racks

and pumps

installed in nine

of the local

councils covered

by the

Sustainable

Urban Mobility

Plan for the

Valletta Region

Number 0 9 Q2 2025

Bicycle racks and pumps shall be

installed in nine of the local councils

covered by the Sustainable Urban

Mobility Plan for the Valletta

Region.

17

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

2.6 C2.R.4 Milestone

Agreement with

Local Councils

Association on

the regeneration

areas in urban

areas

Signed agreement

for regeneration

areas in urban areas

Q2 2021

The signing of agreement between

Transport Malta and Local Councils

Association for the selection of

regeneration areas in urban areas. A

regeneration area is an area where

Local Councils promote walking,

cycling and public transport, in

parallel with other educational

campaigns to avoid unnecessary

travel which is expected to result in

additional free and unencumbered

open public space. The selection of

regeneration areas shall be

consistent with the measures

outlined in Malta’s Transport Master

Plan.

2.8 C2.R.5 Milestone

Publication of

the Remote

Working Policy

for Government

Employees

Publication of the

Remote Working

Policy Document

for Government

Employees

Q1 2022

Publication of a Remote Working

Policy for Government employees.

The policy shall outline the

eligibility criteria, conditions,

requirements for approval and

application guidelines governing

this initiative that promotes work-

life balance and contributes towards

sustainability.

2.9 C2.R.5 Target

15 office

facilities that

enable remote

work for public

service officials

across the

Maltese Islands

operational

Number 0 15 Q4 2021

Number of offices in different

localities being operational with

facilities that enable remote work by

public service workforce across all

Ministries. Such office spaces shall

accommodate at least 140

workstations in total across the 15

office facilities.

18

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

2.10 C2.R.6 Milestone

Completion of

study on

enhanced

mobility

management in

the Maltese

public service

Study with

recommendations

completed

Q1 2023

Completion of study about change

in mobility management in the

Maltese Public Service. The study

shall examine the current situation

and establish a baseline of existing

shared mobility (that is, coordinated

trips between at least two

Government Departments) in the

public service; make

recommendations to re-engineer the

process leading to higher efficiency;

and identify the number and type of

a cleaner fleet of government

general-use vehicles. The study shall

be carried out by an independent

contractor following a public

procurement procedure. The study

shall be shared with the European

Commission.

2.11 C2.R.6 Milestone

Digital platform

for mobility with

public service

vehicles

Digital platform for

mobility with

public service

vehicles online

Q2 2025

A digital platform to track and book

rides with public service vehicles

shall be online.

19

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

2.22 C2.R7 Milestone

Public services

shifted to off-

peak hours and

changes to

public bus

services

Public services

shifted to off-peak

hours and changes

to public bus

services

Q2 2026

The following measures shall be

taken:

- Memorandum of Understanding

signed between The Authority

for Transport in Malta and The

Agency for Infrastructure Malta

allowing for road marking

public services to be shifted to

off-peak hours.

- Memorandum of Understanding

signed between The Authority

for Transport in Malta and the

Cleansing and Maintenance

Division allowing for road

cleaning public services to be

shifted to off-peak hours.

- Increased frequency of

scheduled public bus service to

serve Ħal Farruġ.

- Extension of scheduled public

bus service to serve Ħal Far.

- A new scheduled public bus

service between Addolorata and

L-Imsida (Universita') and

Mater Dei (Sptar).

- A new scheduled public bus

service between Ta' Qali and L-

Imsida (Universita') and Mater

Dei (Sptar).

2.15 C2.I.2 Milestone

Open call for

applications for

electric vehicles

and bicycles in

the private

sector, including

scrappage

scheme

Launched open call

for applications for

electric vehicles

and bicycles in the

private sector,

including scrappage

scheme

Q1 2022

Launch of open call for applications

for support to the purchase of new

electric vehicles and bicycles in the

private sector, including scrappage

schemes for households and

commercial undertakings. The calls

shall include support for the

purchase of new passenger,

passenger care, goods carrying

vehicles, minibuses/coaches,

quadricycles/motorcycles and

pedelecs.

20

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

2.16 C2.I.2 Target

Number of

grants awarded

for electric

vehicles under

the scheme for

the private

sector

Number 0 1 000 Q2 2023

This target measures the number of

grants awarded under the Electric

Vehicle Scheme in the private

sector.

2.17 C2.I.2 Target

Number of

grants awarded

for electric

vehicles under

the scheme for

the private

sector

Number 1 000 5 600 Q4 2024

This target measures the number of

grants awarded under the Electric

Vehicle Scheme in the private

sector.

2.17a C2.I.2 Target

Number of

grants awarded

for the purchase

of electric

vehicles in the

private sector,

together with

mandatory

scrappage of an

existing vehicle

Number 0 5 800 Q2 2026

This target measures the number of

grants awarded for the purchase of

electric vehicles in the private

sector, together with mandatory

scrappage of an existing vehicle.

2.18 C2.I.3 Milestone

Contracted

services for the

supply of

electric vehicles

for the public

service fleet

Contracts signed Q3 2023

Signed contracts for the supply of

electric vehicles for the public

service.

2.19 C2.I.3 Target

Replacement of

vehicles within

the Government

fleet with

electric (zero

emissions)

vehicles

Number 0 250 Q3 2025

Replacement of 250 vehicles within

the Government fleet with electric

(zero emissions) vehicles.

21

C. COMPONENT 3: DIGITALISATION

This component of the Maltese RRP addresses the challenges related to further increasing the

digitalisation across the public and private sectors, notably in terms of improving the resilience,

capacity and security of the government digital backbone, access to digital technology, range and

quality of e-government services, uptake of those services by citizens and businesses, and

digitalisation of the private sector. The component also contributes to addressing the challenge of

improving Malta’s performance in research and innovation (R&I), where Malta is ranked as a

‘moderate innovator’, according to the European Innovation Scoreboard 2021.1

The objective of the component is to fast track the digital transition, notably by strengthening the

national policy framework, investing in the further digitalisation of the public administration and

public services (to increase their range, quality and uptake), as well as supporting the digitalisation

of SMEs. The component also aims to improve Malta’s R&I performance.

The first reform in this component concerns developing and implementing the initiatives regarding

the following three main aspects of Malta Digital Strategy 2022-2027: to reduce the digital divide,

to promote digital skills, and to improve digital public services. The implementation of the

strategies for the development of digital skills shall be supported through the use of other EU

funding programmes, such as the European Social Fund Plus. The second reform relates to the

implementation of Malta’s smart specialisation strategy, with a particular focus on fostering

business R&I and strengthening public-private cooperation. The investments are targeted at

strengthening the government digital backbone and digital solutions, digitalising the Merchant

Shipping Directorate, further digitalising the public administration and rolling out support measures

to digitalise the private sector (namely, SMEs).

The component contributes to addressing the country-specific recommendations related to the

digital transition (country-specific recommendation 3 2020 and 1 2022) and to research and

innovation (country-specific recommendations 3 2019 and 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

of the measures and the mitigating steps set out in the RRP in accordance with the DNSH Technical

Guidance (2021/C58/01).

C.1. Description of the reforms and investments for non-repayable financial support

Reform C3-R1: Deepening the digital transformation through policy reform, with a focus on

reducing the digital divide and promoting digital skills

The objective of the reform is to develop and implement strategies and initiatives focussing on

reducing the digital divide, promoting digital skills, strengthening socio-economic cohesion and

improving digital public services.

The reform shall include the implementation of measures set out in Malta Digital Strategy 2022-

2027. In particular, the reform shall involve the launch of a programme to support families with low

income to have access to computers as well as to be eligible for internet access and training and

guidance on the use of the computer on a first-come, first-served basis. Also, the reform shall

strengthen and promote human resource capacity through the launch of a scholarship scheme to

encourage students to become professionals in the digital area, including in innovative technologies

such as artificial intelligence.

1 European Commission, ‘European Innovation Scoreboard 2021’, 21 June 2021.

22

The reform shall be implemented by 31 December 2023.

Reform C3-R2: Finalise and implement Malta's smart specialisation strategy, with a particular focus

on fostering business R&I and strengthening public-private cooperation

The objective of the reform is to establish and implement a new policy framework for smart

specialisation, with a focus on fostering business R&I and strengthening public-private cooperation.

The reform shall include the adoption of Malta’s smart specialisation strategy 2021-2027, the key

initiatives of which shall include the promotion of inter-agency collaboration in support of

enterprises and inter-agency coordination in order to raise awareness on R&I funding schemes, as

well as the simplification of procedures related to application for funding and provision of guidance

to potential beneficiaries in a more targeted and effective manner. The reform shall also encourage

public-private cooperation to transform research results into market-ready solutions. This reform

shall complement the efforts in R&I undertaken through the Union’s cohesion policy funds.

The reform shall be implemented by 31 December 2024.

Investment C3-I1: Strengthening the resilience, security and efficiency of the government digital

backbone and investing in appropriate digital solutions, devices and tools

The objective of the investment is to support the resilience and security of the government digital

backbone, increase the homogeneity, standardisation and sharing of services across the government,

and upgrade the interface with businesses.

The measure consists of investing within the digital backbone into various digital solutions and

components to further increase the backbone’s overall security, resilience and capacity.

Investment C3-I2: Digitalisation of the Merchant Shipping Directorate within Transport Malta

The objective of the investment is to further digitalise the merchant shipping sector and ensure more

efficient regulatory practices, as well as optimise the internal operations, customer relations and

administration within Malta’s Merchant Shipping Directorate.

The investment consists of making accessible for use the document management system and parts

of the vessel management system.

Investment C3-I3: Further digitalisation and modernisation of the public administration

The objective of the investment is for the public administration to provide better customer

experience to citizens and business organisations, to increase the uptake of online services, to

support the competitiveness of the Maltese economy, and to offer remote means of working for

public officers.

The investment consists of supporting the use of e-government services, creating the National

Single Window for Customs and the Address-Based Geolocated Image Capture of Maltese building

units, and acquiring hardware and software to offer remote work for public officers.

23

Investment C3-I4: Rolling out measures to support the digitalisation of the private sector

The objective of the investment is to support the private sector in its digitalisation efforts by

addressing gaps in funding opportunities.

The investment consists of grants for the private sector to invest in the digitalisation (including

hardware, software and digital solutions), in order to support operations and explore new business

opportunities.

Investment C3-I5: Mobile infrastructure and software for digitalisation of urban ecology

The objective of the investment is to acquire mobile infrastructure and software for the

digitalisation of urban ecology to facilitate aerial, terrestrial, subterranean and bathymetric scans

and contribute towards the creation of a national interactive database that supports management and

research of environmental, social and urban developments.

The investment consists of the acquisition of mobile infrastructure and software for digitalisation of

urban ecology.

Investment C3-I6: Transfer to InvestEU Member State Compartment

This measure consists of a public investment in the InvestEU Member State compartment in order

to incentivise private investment and improve access to finance for SMEs. The contribution to the

InvestEU Member State compartment shall be used for loan guarantees provided to SMEs through

financial intermediaries to the private sector.

A Guarantee Agreement between the Commission and Implementing Partner, selected in

accordance with the relevant provisions of Regulation (EU) 2021/523 of the European Parliament

and of the Council of 24 March 2021 establishing the InvestEU Programme and amending

Regulation (EU) 2015/1017, shall enter into force.

Malta shall sign a contribution agreement with the European Commission that shall include:

- The proposed Implementing Partner.

- The requirement of compliance with the DNSH Technical Guidance (2021/C58/01). If

necessary, the Guarantee Agreement shall exclude the following list of activities and assets

from eligibility: (i) activities and assets related to fossil fuels, including downstream use2;

(ii) activities and assets under the EU Emission Trading System (ETS) achieving projected

greenhouse gas emissions that are not lower than the relevant benchmarks3; (iii) activities

2 Except for (a) projects in power and/or heat generation, as well as related transmission and distribution

infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant

harm’ Technical Guidance (2021/C58/01) and (b) activities and assets under point (ii) for which the use of fossil

fuels is temporary and technically unavoidable for the timely transition towards a fossil fuel free operation. 3 Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the

relevant benchmarks, an explanation of the reasons why this is not possible shall be provided. Benchmarks

established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in

the Commission Implementing Regulation (EU) 2021/447.

24

and assets related to waste landfills, incinerators4 and mechanical biological treatment

plants5.

4 This exclusion does not apply to actions in plants exclusively dedicated to treating non-recyclable hazardous waste,

and to existing plants, where the actions are for the purpose of increasing energy efficiency, capturing exhaust gases

for storage or use or recovering materials from incineration ashes, provided such actions do not result in an increase

of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is

provided at plant level. 5 This exclusion does not apply to actions in existing mechanical biological treatment plants, where the actions are for

the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-

waste and anaerobic digestion of bio-waste, provided such actions do not result in an increase of the plants’ waste

processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

25

C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

3.1 C3.R.1 Milestone

Launch of a

scholarship scheme

for students to

become ICT

professionals

Online

publication of the

scheme

Q1 2022

In line with Malta Digital Strategy 2022-2027,

open a scholarship scheme to encourage

students to pursue a career in niche ICT areas

such as artificial intelligence.

3.2 C3.R.1 Target

Individuals supported

to mitigate digital

divide

Number 0 1 000 Q4 2023

A pilot scheme shall be launched in 2021 to

analyse the impact of home internet connection

and access to a computer on low income

families in respect to digital literacy,

connectivity, integration of digital technology

and computer skills. The pilot scheme shall

target applicants with low income and limited

means. Beneficiaries shall be provided with a

computer. In addition, beneficiaries shall be

informed of their eligibility for internet access,

as well as of the possibility of applying for

training and guidance on the use of the

computer on a first-come, first-served basis.

3.3 C3.R.2 Milestone

Adoption of Malta's

Smart Specialisation

Strategy

Online

publication of the

strategy

Q4 2021

Publication of national smart specialisation

strategy. The strategy shall focus on a number

of key initiatives including:

- investment in research infrastructure;

- supporting internationalisation, including

through participation in Horizon Europe;

- promotion of inter-agency collaboration in

support of enterprises; and

- incentives for industry stakeholders to

innovate.

3.5 C3.I.1 Target Increased uptime of

the Digital Backbone

%

(Percentage) 99.7 99.8 Q4 2023

Percentage of uptime (total time that service is

up, divided by the total number of hours during

that period, excluding scheduled downtime) of

the digital backbone (Government Network

referred to as MAGNET and MITA Corporate

Data Centres) measured by Malta Information

Technology Agency (MITA).

26

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

3.6 C3.I.1 Milestone

Level 4 in NIST

cybersecurity

framework

NIST level

assessed as level 4

in a report by an

independent

expert

Q4 2025

An assessment report prepared by an

independent expert, documenting that MITA

infrastructure attains an overall level 4 in NIST

cybersecurity framework. In addition,

cybersecurity training shall be provided.

3.8 C3.I.2 Milestone IT systems and tools

accessible for use

IT systems and

tools are

accessible for use

Q4 2025

The following IT systems and tools shall be

accessible for use: • Document Management System, including the

migration of ship files, and • The parts of the Vessel Management System

providing for:

• a Digital Maritime Interface

• the Billing Module

• the Maritime Analytics

• the Seafarer Training Management Module.

3.10 C3.I.3 Target

Expenditure incurred

in relation to the

modern digital

workplace and

solutions to improve

the front-end

customer experience

EUR 0 2 500 000 Q4 2022

At least a value of EUR 2 500 000 has been

paid for contractual obligations relating to

measures in relation to the modern digital

workplace and solutions to improve the front-

end customer experience.

3.11 C3.I.3 Milestone

Acquisition or

renewal of Microsoft

365 (or equivalent)

licences

Licences acquired

or renewed Q4 2025

Acquisition or renewal of 3 500 Microsoft 365

(or equivalent) licences in 2021 and 3 500

Microsoft 365 (or equivalent) licences in 2022.

3.11a C3.I.3 Milestone

Acquisition or

renewal of Microsoft

365 Copilot licences

Licences acquired

or renewed Q2 2026

Acquisition or renewal of 5 000 Microsoft 365

Copilot licences in 2025 and 12 000 Microsoft

365 Copilot licences in 2026.

3.12 C3.I.3 Milestone

Acquisition of laptops

and telephony

licences

Laptops and

telephony licences

acquired

Q4 2024 Acquisition of 2 000 laptops and 2 000

telephony licences.

3.13 C3.I.3 Milestone

Digital public services

for citizens and

businesses

Digital Economy

and Society Index

(DESI)

indicator for

digital public

services

Q4 2025

DESI indicator for digital public services for

citizens of at least 99.7.

DESI indicator for digital public services for

businesses of at least 99.0.

27

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

3.13a C3.I.3 Milestone

National Single

Window for Customs

and an Address-Based

Geolocated Image

Capture of Maltese

Building Units

National Single

Window for

Customs and an

Address-Based

Geolocated Image

Capture of

Maltese Building

Units

Q2 2026

National Single Window for Customs and an

Address-Based Geolocated Image Capture of

Maltese Building Units shall be created.

3.14 C3.I.4 Milestone Launch of the calls

for applications

Publication of the

call Q1 2022

Launch of calls for applications for business to

receive grant support for digitalisation,

including wholesale and retail, tourism

(including culture) and manufacturing sectors.

The terms of reference shall include eligibility

criteria that ensure that the selected projects

comply with the ‘Do no significant harm’

Technical Guidance (2021/C58/01) through the

use of an exclusion list and the requirement of

compliance with the relevant EU and national

environmental legislation.

3.15 C3.I.4 Milestone

Grants for

digitalisation of the

private sector

Grants paid out Q2 2026

Registration in the RRF database of the

Ministry responsible for the European Funds of

payments of grants of at least EUR 10 800 000.

3.16 C3.I.5 Milestone

Acquisition of mobile

infrastructure and

software for

digitalisation of the

urban ecology

Acquisition of

mobile

infrastructure and

software for

digitalisation of

the urban ecology

Q2 2026

Acquisition of mobile infrastructure and

software for digitalisation of urban ecology,

including a mobile immersion lab system,

systems for data capture, and a mobile Ground

Penetrating Radar lab system.

3.17 C3.I.6 Milestone

Signature of the

Contribution

Agreement between

the government of

Malta and the

European

Commission

Signature of the

Contribution

Agreement

Q1 2026

Signature of the Contribution Agreement

between the government of Malta and the

European Commission for an amount of

EUR 13 100 000.

3.18 C3.I.6 Target

Financing or

investment operations

approved by the

InvestEU Investment

Committee

Percentage

(%) 0% 100% Q2 2026

Financing or investment operations amounting

to 100% of the total amount of resources

allocated to the instrument shall have been

approved by the InvestEU Investment

Committee.

28

D. COMPONENT 4: HEALTH

This component of the Maltese RRP addresses the challenges faced by Malta’s healthcare sector

particularly in meeting the demands of an ageing population. The objective of the component is to

increase the resilience and sustainability of the health sector whilst ensuring universal access, high

quality of care and sustainable services.

The first reform aims at improving the management of the workforce. It addresses obstacles to the

hiring and retention of foreign healthcare workers, also by improving their wellbeing. It also

contributes to disease prevention related to children’s health. The second reform addresses

regulatory barriers that may hamper the full exploitation of the Blood, Tissue and Cell Centre.

The first investment consists of the establishment of a Blood, Tissue and Cell Centre within close

proximity of the main hospital in Malta. The second investment consists of two projects enhancing

the resilience of the health system through digitalisation and new technologies.

This component builds on previous actions aimed at increasing the variety of services offered to the

population in Malta and at streamlining interactions between different services to ensure continuity

of care.

The component contributes to addressing the country-specific recommendations on improving the

resilience and fiscal sustainability of the healthcare system (country-specific recommendation 1

2019) and (country-specific recommendation 1 2020), especially in view of the global pandemic.

The measures in this component are complemented by initiatives financed under other EU

programmes to support capacity building for health professionals and further investment in the

primary care centres.

It is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

of the measures and the mitigating steps set out in the RRP in accordance with the DNSH Technical

Guidance (2021/C58/01).

D.1. Description of the reforms and investments for non-repayable financial support

Reform C4-R1: Develop and implement a health policy framework aimed at making the health

system more sustainable and resilient, with a particular focus on health prevention and a strong

workforce

The objective of this reform is to build resilience in the health sector’s workforce and to prevent

diseases in children.

The reform consists of (i) a bespoke tool for workforce planning, (ii) measures to facilitate the

integration and wellbeing of foreign health workers, (iii) assessment of obesity prevalence among

4–5-year-old children and (iv) the roll out of a neonatal hearing screening programme.

Reform C4-R2: Review the national legislative framework related to the Establishment of a Blood,

Tissue and Cell Centre for Malta.

The objective of this reform is to review the national legislative framework related to the Blood,

Tissue and Cell Centre for Malta.

The reform consists of a review followed by the entry into force of legal act(s) on the Blood, Tissue

and Cell Centre.

29

Investment C4-I1: Construction of a Blood, Tissue and Cell Centre for Malta

The objective of this investment is to alleviate the dependency of Malta on other countries for the

provision of blood, tissue and cell therapies needed in medical interventions and treatments, and

support social well-being by offering services locally.

The investment consists of the construction of a Blood, Tissue and Cell Centre.

Investment C4-I2: Enhancing the resilience of the health system through digitalisation and new

technologies

The objective of this investment is to support the digital transition of Malta’s health care system.

The investment consists of equipment for digital pathology services and a Magnetic Resonance

Linear Accelerator machine at the oncology centre reducing treatment volumes, times and side

effects for patients.

30

D.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of measure Baseline Goal Quarter Year

4.1 C4.R.1 Milestone

Study on barriers

and facilitators

for better

integration and

wellbeing of the

foreign

workforce

Publication of the study on

barriers and facilitators for

better integration and wellbeing

of the foreign workforce

Q2 2022

Publication of a study on the integration and

wellbeing of the foreign workforce within the

Public sector. The study shall: (i) study

barriers and facilitators for a better

integration and wellbeing of foreign

workforce (including expectations, concerns,

relationship with peers) (ii) consult all

relevant stakeholders (including JobsPlus and

Identity Malta) (iii) propose policy

recommendations about measures to improve

integration and wellbeing of foreign

workforce.

The study shall employ appropriate

assessment tools and methodology for the

measurement of wellbeing. The study shall

examine the current situation and establish a

baseline of existing wellbeing of foreign

workers, based on MH1 or MH2 scores of the

SF36 questionnaire, which is a 36-item,

patient-reported survey of patient health.

MH1 and MH2 indicators are calculated

based on the replies to the corresponding

questions in the Mental Health section of the

survey. The study shall be carried out by an

independent contractor engaged through

public procurement procedures. The study

shall be made available to the Commission

through the Management Information

System.

4.2 C4.R.1 Milestone

Bespoke tool for

workforce

planning

Bespoke tool for workforce

planning in place and made

available for use

Q2 2023

Tool for health workforce planning including

features related to human resources,

budgeting, vacancies management and hiring

facilitation, is developed and made available

for use.

31

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of measure Baseline Goal Quarter Year

4.3 C4.R.1 Milestone

Reports on

addressing policy

recommendations

on wellbeing and

integration of

foreign

workforce within

the Ministry for

Health

(i) Publication of a report on

the Positive Integration,

Assimilation and Retention of

Foreign Workers within the

Ministry for Health in Malta.

(ii) Publication of a report on

addressing policy

recommendations on the

wellbeing and integration of

foreign health workers

Q4 2025

Publication of report by the external expert to

the Ministry for Health on the Positive

Integration, Assimilation and Retention of

Foreign Workers within the Ministry for

Health in Malta. Publication of a report by

authorities responsible for health on

addressing policy recommendations on the

wellbeing and integration of foreign health

workers.

4.5 C4.R.1 Milestone

Report on obesity

prevalence

amongst 4–5-

year-olds in the

Maltese

population

Online publication of the report

on obesity prevalence amongst

4–5-year-olds in the Maltese

population

Q4 2022

Publication of a report on childhood obesity,

which shall feed into the obesity surveillance

programme among children. The study shall

examine the prevalence of obesity among the

4–5-year-olds in the Maltese population. 10%

of children in School Years 1-11 shall be

sampled together with all the children

attending 50% of the Kindergarten 2 centres.

This assessment shall set a baseline for this

young age group only and compare with

older cohorts. This shall lead to policy

recommendations, which may include

awareness campaigns.

4.6 C4.R.1 Target

Implementation

of neonatal

hearing screening

programme

%

(percentage) 40 85 Q4 2023

The programme shall identify hearing

problems in early years (New-born Hearing

Screening Programme). The programme shall

consist of the identification of those babies

who are at risk for hearing impairment, in

order to achieve early identification and

rehabilitation. For the achievement of the

target, at least 85% of babies born in 2023

shall be screened.

32

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of measure Baseline Goal Quarter Year

4.7 C4.R.2 Milestone

Review of the

regulatory

framework

related to the

Blood Bank,

Tissue and Cell

Centre

Online publication of review of

the regulatory framework

related to the Blood Bank,

Tissue and Cell Centre

Q1 2022

The review shall: (i) scrutinise the regulatory

framework related to blood, tissues and cells;

and (ii) identify the legal changes required to

remove any regulatory barriers and

bottlenecks that may affect the functioning of

the Centre. The study shall include a review

of the following regulatory areas: 1. Blood,

Tissue and Cell legislation; 2. Relevant

environmental legislation; 3 Relevant

organizational legislation (equal

opportunities, data protection, ethics and

patient rights, accessibility); and 4. State aid

legislation.

The review shall take into account the EU

initiative on Revision of the Union legislation

on blood, tissues and cells

(https://ec.europa.eu/info/law/better-

regulation/have-your-say/initiatives/12734-

Blood-tissues-and-cells-for-medical-

treatments-&-therapies-revised-EU-rules_en).

The review shall be carried out by an

independent contractor selected through

public procurement procedures.

4.8 C4.R.2 Milestone

Entry into force

of legal act(s) on

the Blood Bank,

Tissue and Cell

Centre

Provisions in the legal Act(s)

indicating the entry into force Q2 2024

Entry into force of legal act(s): (a) to

establish a Government Department operating

the Blood Bank, Tissue and Cell Centre, and

(b) to assign functions and responsibilities to

the Government Department.

4.9 C4.I.1 Milestone

Contracted

services for the

construction of a

Blood, Tissue

and Cell Centre

Contract signed for the

construction of a Blood, Tissue

and Cell Centre

Q1 2023

Following public procurement, contract

signed for the construction of a Blood, Tissue

and Cell Centre.

4.10 C4.I.1 Milestone

Constructed

Blood, Tissue

and Cell Centre

Blood, Tissue and Cell Centre

constructed and biomedical

equipment installed

Q4 2025

The Blood, Tissue and Cell Centre shall be

constructed and the biomedical equipment

shall be installed.

33

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of measure Baseline Goal Quarter Year

4.11 C4.I.2 Milestone

Contract signed

for the

procurement of

Magnetic

Resonance

Linear

Accelerator

equipment

solution at Sir

Anthony Mamo

Oncology Centre

Contract signed for the

procurement of Magnetic

Resonance Linear Accelerator

(MR Linac) equipment solution

at Sir Anthony Mamo

Oncology Centre

Q2 2022

Following public procurement, contract

signed for the procurement of Magnetic

Resonance Linear Accelerator equipment at

Sir Anthony Mamo Oncology Centre within

Mater Dei Hospital.

4.12 C4.I.2 Milestone

Magnetic

Resonance

Linear

Accelerator

equipment

operational and

open to users

Magnetic Resonance Linear

Accelerator equipment fully

operational and open to users

Q2 2023

The Magnetic Resonance Linear Accelerator

is operational and used for the treatment of

patients at Sir Anthony Mamo Oncology

Centre.

4.13 C4.I.2 Milestone

All contracts

signed for the

digital pathology

services at the

histopathology

department at

Mater Dei

hospital

All contracts signed for the

digital pathology services at the

histopathology department at

Mater Dei hospital

Q2 2022

Following public procurement, contracts

signed for a turnkey digital pathology service

at the histopathology department of Mater

Dei Hospital.

The procurement process shall include: (a)

software to handle the pre-analytical phase

and provide seamless automation of specimen

processes (incl. real time tracking of cases)

that integrates with the current laboratory

information management system (LIMS); (b)

gross specimen imaging facilities and

enabling software; (c) high throughput digital

slide scanners and digital case management

system; (d) networking server solutions, to

facilitate real-time online storage facilities

and archiving of slides as well as network

points at various stations within the

sectioning and processing rooms; and ( e)

hardware, including PC’s at locations other

than the laboratory to enable conference calls

and multidisciplinary team meetings.

34

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target

Unit of measure Baseline Goal Quarter Year

4.14 C4.I.2 Milestone

Delivery of

equipment for

digital pathology

services at the

histopathology

department at

Mater Dei

hospital

Delivery of equipment for

digital pathology services Q2 2024

Delivery of equipment for digital pathology

services at the histopathology department at

Mater Dei Hospital.

35

E. COMPONENT 5: ENHANCING QUALITY EDUCATION AND FOSTERING SOCIO-ECONOMIC

SUSTAINABILITY

This component of the Maltese RRP contributes to addressing the challenges of high shares of

early-school leavers and low-skilled adults, prevalent skills shortages, and the need to enhance the

quality and inclusiveness of the education and training system. It further assesses the current

pension and unemployment benefits system with a view to continue pursuing policy reforms to

ensure their adequacy and sustainability. Its objective is to foster the resilience of Malta's workforce

and society, also in light of the green and digital transitions.

Reforms in this component strengthen early school leaving intervention and prevention measures,

expand guidance and opportunities for upskilling and reskilling for all adults and in particular for

the low-skilled,enhance quality inclusive education for pupils with special needs, improve the

education policy monitoring system and further develop the regular analysis and monitoring of the

pension and unemployment benefits system to support its adequacy and sustainability.

The component contributes to addressing the country-specific recommendations related to quality

and inclusive education (country-specific recommendations 2 2020 and 3 2019), the labour market

(country-specific recommendation 2 2020), and the pension system (country-specific

recommendation 1 2019).

It is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

of the measures and the mitigating steps set out in the RRP in accordance with the DNSH Technical

Guidance (2021/C58/01).

E.1. Description of the reforms and investments for non-repayable financial support

Reform C5-R1: Strengthen early school leaving prevention measures, with a focus on

skills acquisition

The objective of this reform is to prevent early school leaving and to contribute towards decreasing

the early school leaving rate.

The reform consists of the provision of a literacy support programme (Reading recovery (RR)

programme) for students, including respective teacher trainings, and the go-live of the Data

Warehouse Solution.

Reform C5-R2: Strengthening skills development and recognition, with a particular focus on low-

skilled adults

The objective of this reform is to increase upskilling and reskilling opportunities for adults.

The reform consists of an e-College complemented by a hub facility providing physical space, and

elements included in the Roadmap on developing an adult learning guidance system, including

capacity building for adult learning professionals and establishing guidance networks.

Reform C5-R3: Inclusive education

The objective of this reform is to increase quality inclusive education.

The reform consists of the roll out of multi-sensory learning rooms (MSLR) for students with

severe needs in colleges, two autism units in middle schools, the continuous training in inclusive

36

pedagogy for teachers and learning support educators, the acquisition of the IEP Module, circulars,

and the publication of the revised Policy on Inclusive Education in Schools.

Reform C5-R4: Education policy

The objective of this reform is to establish an education policy monitoring system.

This reform consists of a Monitoring and Evaluation Report, and the appointment of two people to

form part of the Policy Monitoring and Evaluation Directorate.

Reform C5-R5: Employment policy

The objective of this reform is to increase the resilience of the labour market.

This reform consists of a study on unemployment benefits in Malta including the recommendation

of policy options, the publication of an external monitoring report of unemployment benefits in

Malta, the issuance of certificates, the entry into force of the Work-Life Balance for Parents and

Carers Regulations, the publication of the National Employment Policy 2021-2030, a training for

educational personnel, the entry into force of a legal act, the publication of a report, and the

publication of the Gender Equality and Mainstreaming Strategy Action Plan 2022-2027.

Reform C5-R6: Reviewing the sustainability and offering of Malta's pension system

The objective of this reform is to improve the long-term sustainability and adequacy of the pensions

system.

This reform shall consist of the publication of an Action Plan outlining policy proposals, including

legislative changes where relevant, to enhance the pension system's sustainability and adequacy, as

a follow-up to the Pensions Review Report that assesses the current pension system and

recommends policy actions, and the post-consultation feedback.

The reform shall be implemented by 31 December 2022.

37

E.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

5.1 C5.R.1 Target

Number of

students trained in

the Reading

Recovery (RR)

Programme

Number 0 1 000 Q4 2024 1 000 students have received a Reading Recovery Programme

certificate.

5.2 C5.R.1 Target

Teachers trained

in the Reading

Recovery (RR)

Programme

Number 0 58 Q4 2023 58 teachers shall be trained in the Reading Recovery (RR)

Programme as testified by certificates.

5.4 C5.R.1 Milestone Data Warehouse

Solution

Go-Live of

the Data Warehouse

Solution

Q3 2024 The acceptance report for the go-live of the Data Warehouse Solution

has been signed by the contracting authority and the contractor.

5.5 C5.R.2 Milestone

Implementation of

elements included

in the Roadmap on

developing a

guidance system,

capacity building

for adult learning

professionals and

establishing

guidance networks

Elements included in the

Roadmap on developing

a guidance system,

capacity building for

adult learning

professionals and

establishing guidance

networks are

implemented

Q2 2023

The following elements included in the Roadmap on developing a

guidance system, including capacity building for adult learning

professionals and establishing guidance networks shall be

implemented:

(i) The designation of a national hub, where any adult may ask for

guidance for the trajectory towards upskilling and reskilling;

(ii) Offer the possibility of having career and learning guidance in

adult learning centres.

5.6 C5.R.2 Milestone Launch of the e-

College

e-College is operational,

including guidance unit,

online hub and desk

Q2 2022

The e-College shall be legally and practically operational with at least

ten (10) courses covering different subject areas. The e-College shall

possess at least a learning management system, a mentoring and

guidance unit, an online hub and online coaches which assist learners.

5.8 C5.R.3 Target

Setting up of two

autism units

(physical spaces

equipped with

equipment and

trained education

personnel) in

middle schools

Number 0 2 Q4 2021

Two new autism units (physical spaces) shall be completed and

operational. Such units shall be available for student usage as

required (white room - water bed & bubble tube). A maximum of 16

students may benefit from the first two Autism Units set up. Two (2)

teachers and six (6) Learning Support Educators shall receive

additional training in inclusive pedagogy and in the delivery of a

functional curriculum with at least one (1) teacher and two (2)

Learning Support Educators (LSEs) in each class. The training of

teachers and LSEs shall be delivered in-house by practitioners at the

National School Support Services (NSSS).

38

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

5.9 C5.R.3 Target

Setting-up of two

new multi-sensory

learning rooms

(MSLR) (physical

spaces equipped

with equipment

and trained

education

personnel) in

colleges

Number 0 2 Q1 2022

Two new multi-sensory learning rooms (MSLR) shall be completed

and operational. Such rooms shall be available for students' usage as

required. One room shall be used as a sensory area and shall include

items such as: ball pool, trampoline, peanut ball; and another shall be

for general activity and shall include items such as: a kitchenette, a

computer area and a calming area. There shall be at least one teacher

in every class. The training of teachers shall be delivered in-house by

practitioners at the National School Support Services (NSSS).

5.10 C5.R.3 Milestone

Acquisition of IEP

Module, circulars,

and the

publication of the

revised Policy on

Inclusive

Education in

Schools

Acquisition of IEP

Module, circulars, and

the publication of the

revised Policy on

Inclusive Education in

Schools

Q4 2025

The revised Policy on Inclusive Education in Schools shall be

published.

The Individual Education Plans (IEP) Module shall be acquired.

The obligation for State schools to organise events at least once every

term that recognise and celebrate diversity shall have entered into

force by means of a circular.

The obligation that State school mission statements include evidence

of values of diversity and inclusion shall have entered into force by

means of a circular.

5.11 C5.R.4 Milestone

Monitoring and

Evaluation Report

submitted and

approval of

appointment of

two people within

the Policy

Monitoring and

Evaluation

Directorate

Submission to the

Permanent Secretary

within the Ministry for

Education of the

Monitoring and

Evaluation Report by the

Policy Monitoring and

Evaluation Directorate.

Approval of the

appointment of two

people within the Policy

Monitoring and

Evaluation Directorate

Q4 2025

The Monitoring and Evaluation Report by the Policy Monitoring and

Evaluation Directorate shall be submitted to the Permanent Secretary

within the Ministry for Education.

The appointment of two people within the Policy Monitoring and

Evaluation Directorate shall be approved by the Permanent Secretary

within the Ministry for Education.

5.12 C5.R.5 Milestone

Assessment of

unemployment

benefits

Online publication of

study on the assessment

of unemployment

benefits

Q2 2022

A study assessing unemployment benefits in Malta shall be

completed and published. The study shall assess the situation and

make concrete and detailed recommendations to the Government on

how to improve effective coverage and achieve better adequacy of

benefits, both in terms of duration and effective access, whilst

enhancing the incentive to work.

39

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

5.13 C5.R.5 Milestone

Monitoring report

on unemployment

benefits in Malta

Publication of

monitoring report Q4 2024

An external monitoring report on unemployment benefits in Malta

has been published.

5.14 C5.R.5 Milestone

Issuance of

certificates, entry

into force of the

Work-Life

Balance for

Parents and Carers

Regulations, and

the publication of

the National

Employment

Policy 2021-2030

Issuance of certificates,

entry into force of the

Work-Life Balance for

Parents and Carers

Regulations, and the

publication of the

National Employment

Policy 2021-2030

Q3 2025

The National Employment Policy 2021-2030 shall be published. A total of 60 individual certificates in ‘Award in Maltese as a foreign

language’ have been issued. A total of 30 individual certificates in ‘General Education Award in

Accounts’ have been issued. The Work-Life Balance for Parents and Carers Regulationsproviding

at least 10 working days of paternity leave without loss of wages

shall enter into force.

5.15 C5.R.5 Milestone

Training for

educational

personnel, entry

into force of a

legal act,

publication of a

report, and

publication of the

Gender Equality

and

Mainstreaming

Strategy and

Action Plan 2022-

2027

Training for educational

personnel, entry into

force of a legal act,

publication of a report,

and publication of the

Gender Equality and

Mainstreaming Strategy

and Action Plan 2022-

2027

Q4 2025

The Gender Equality and Mainstreaming Strategy and Action Plan

2022-2027 shall be published.

At least one legal act that removes a previous differentiation between

men and women shall enter into force.

Training for educational personnel in tackling gender discrimination

issues and stereotypes shall be delivered.

The report entitled ‘Measuring Gender Equality: a gender analysis

based on sex-disaggregated indicators’ by the Human Rights

Directorate and the National Statistics Office shall be published.

5.16 C5.R.6 Milestone

Follow-up of the

Pensions Review

Report with policy

proposals

Online publication of an

Action Plan outlining

policy proposals,

including legislative

changes where relevant,

as a follow-up to the

Pensions Review Report

and the post-consultation

feedback

Q4 2022

Publication of an Action Plan outlining policy proposals, including

legislative changes where relevant, as a follow-up to the Pensions

Review Report and the post-consultation feedback, with the objective

to improve the long-term sustainability and adequacy of the pensions

system.

40

F. COMPONENT 6: STRENGTHENING THE INSTITUTIONAL FRAMEWORK

This component of the Maltese RRP addresses a number of institutional and governance challenges

in the area of justice, the fight against corruption and money laundering, and taxation. On the justice

system, weaknesses have been identified with respect to the independence of the judiciary, the lack

of a separate prosecution service from the investigative branch, as well inefficiencies. The further

digitalisation of the justice system is also expected to contribute to addressing these inefficiencies.

Challenges have also been identified in the governance framework to effectively detect and

prosecute corruption including, inter alia, structural flaws that prevented the independent and

effective functioning of the Maltese Permanent Commission Against Corruption. With respect to

money laundering, challenges relate to weak investigation and prosecution of money laundering

cases and insufficient asset-tracing and confiscation regime for criminal proceeds. The situation is

exacerbated by Malta’s citizenship and residence schemes and a rapid growth in recent years of

internationally oriented activities such as financial services, virtual assets and remote gaming. On

taxation, the absence of national provisions to provide for the effective taxation of inbound and

outbound dividend, interest and royalty payments, Malta’s citizenship and residence schemes, and

lacking transfer pricing rules provide room for aggressive tax planning practices for both companies

and individuals.

The objective is to improve the capacity and governance of the justice system, reinforce the

institutional framework to fight against corruption, strengthen the anti-money laundering regime

and target aggressive tax planning. Several elements of this component are retroactive having

already, in part, been implemented in 2020 and early 2021.

Reforms to improve the justice system include changes to the method of appointment and dismissal

of the judiciary while also assessing and implementing the necessary remedial action to ensure the

independence of specialised tribunals. The institutional framework capacity to fight corruption is

expected to be reinforced through the implementation of the capacity building elements of the

national anti-fraud and corruption strategy, the reform of the asset recovery bureau and through

reforms targeting an important anti-corruption body, namely the Permanent Commission Against

Corruption (PCAC). To strengthen the investigation of crimes, including corruption and money

laundering, reforms include a new appointment procedure for the Commissioner of Police. On the

prosecution front, the component proposes the creation of a separate prosecution service, while also

implementing a judicial review of decisions not to prosecute by the Attorney General. Measures to

strengthen the regime to counter money laundering and the financing of terrorism are also put

forward in this component. In addition, four reforms target aggressive tax planning (ATP), namely

by limiting the tax exemption for dividends coming from countries placed on the ‘Code of Conduct

Group’ list of non-cooperative jurisdictions, introducing transfer pricing legislation, carrying out a

study followed up by legislative amendments on measures relating to inbound and outbound

dividends, interest and royalty payments, and finally spontaneously exchanging information on

future applicants receiving Maltese citizenship under the citizenship scheme with their original tax

jurisdictions.

This component also includes one investment that aims to improve the quality and efficiency of the

judiciary system through its digitalisation.

The component contributes to addressing the country-specific recommendations related to judicial

independence, anti-money laundering and aggressive tax planning (country-specific

recommendations 4 2020,2 2019 and 3 2022).

It is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

41

of the measures and the mitigating steps set out in the RRP in accordance with the DNSH Technical

Guidance (2021/C58/01).

F.1. Description of the reforms and investments for non-repayable financial support

Reform C6-R1: Reform the method of appointment and dismissal of the judiciary

The objective of this measure is to make the judiciary more independent.

This measure consists of the entry into force of legal act(s) on the appointment of the Chief Justice,

the composition of the Judicial Appointments Committee, disciplinary procedures for members of

the judiciary, public calls for vacancies for the judiciary, and entry into force of legal act(s) on the

independence of specialised tribunals.

Reform C6-R2: Create a separate prosecution service

The objective of this measure is to make the prosecution services better function.

The reform consists of the transfer of prosecution cases from the police to the Attorney General’s

office, and the Attorney General’s office recruiting additional officers.

Reform C6-R3: Reinforcing the institutional framework capacity to fight against corruption;

Implementation of the National Anti-Fraud and Corruption Strategy (NAFCS)

The objective of this reform is to increase the capacity of the Maltese institutions to fight against

corruption.

The measure consists of the update of the 2008 National Anti-Fraud and Corruption Strategy and

actions related to the national risk assessment, training for officials in national authorities,

documentary repository and whistle-blower database.

Reform C6-R4: Reform the Permanent Commission Against Corruption (PCAC)

The objective of the measure is to allow for a more independent functioning of the Permanent

Commission Against Corruption (PCAC) with greater resources.

The measure consists of reforming the Permanent Commission against Corruption (PCAC),

including how the Chairperson and members are appointed, and its operations and resources.

42

Reform C6-R5: Reform the Asset Recovery Bureau

The objective of this measure is to increase the powers and capacity of the Asset Recovery Bureau

in order to support the role of law enforcement authorities in the fight against money laundering and

financial crime.

The reform consists of the entry into force of the Proceeds of Crime Act (Act No. V of 2021) and

the recruitment of staff in the Asset Recovery Bureau.

Reform C6-R6: A new appointment procedure of the Commissioner of Police

The objective of this measure is to strengthen the justice system, more specifically the investigation

branch, by reforming the manner in which the Commissioner of Police is appointed.

The reform consists of the entry into force of Act XIX of 2020 introducing legal amendments to the

Police Act (Chapter 164 of the Laws of Malta) and Article 92 of the Constitution to establish a

transparent and competitive process of appointment for the office of Commissioner of Police. Under

the new process, the Public Service Commission shall issue a public call for applications, shall

evaluate the applications submitted and then shall draw up a shortlist indicating the two most

suitable candidates. The Public Service Commission shall then refer this shortlist to the Cabinet of

Ministers. The Cabinet shall consider both candidates and then shall nominate the most suitable

candidate for a hearing before the Parliamentary Public Appointments Committee. If this

Committee advises in favour of the appointment of the selected candidate, the Prime Minister shall

appoint the selected candidate after consultation with the Public Service Commission.

This is a retroactive measure that was approved by Parliament in April 2020.

Reform C6-R7: Implementation of the reform concerning the judicial review of decisions not to

prosecute and other decisions of the Attorney General. This includes the assignment of the status of

injured party at law to specific institutions when reporting a corrupt practice

The objective of this reform is to ensure that the decisions of the Public Prosecutor not to prosecute

are subject to judicial review.

This measure consists of the entry into force of legal act(s) giving specific anti-corruption bodies

the status of injured party at law, and an independent review and legal changes concerning injured

parties to appeal the decision of the Attorney General not to prosecute.

Reform C6-R8: Strengthening Malta’s anti-money laundering/combating terrorists

financing/targeted financial sanctions (AML/CFT/TFS)

The objective of this measure is to ensure a sustainable, proactive, responsive and effective anti-

money laundering framework that may respond to ever changing money-laundering and terrorist

financing risks.

The reform shall consist of the implementation of the national anti-money laundering/combating

terrorist financing/target financial sanctions (AML/CFT/TFS) strategy and action plan for 2021-

2023, which replaces the implemented Strategy for 2017-2020. The reform shall implement all the

actions, which focus on seven policy goals defined in the national AML/CMT/TFS strategy and

action plan for 2021-2023.

43

The reform shall also provide adequate training and outreach for the relevant members of NCC.

Finally, the reform also requires FATF’s written conclusion that Malta is no longer subject to the

FATF’s increased monitoring process.

The implementation of the reform shall be completed by 31 December 2023.

Reform C6-R9: Aggressive Tax Planning (ATP) - Code of Conduct Group

The objective of this measures is to remove the possibility of exempting the dividends derived from

bodies of persons resident in jurisdictions listed in the Code of Conduct Group list of non-

cooperative jurisdictions from being taxed in Malta.

The reform shall abolish the so-called participation exemption which allows dividend income or

capital gains derived from a participating holding (usually an equity shareholding of at least 5%) to

be exempted from tax in Malta. Specifically, dividends derived from the body of persons resident in

jurisdictions that have been listed in the ‘Code of Conduct Group’ list of non-cooperative

jurisdictions for at least three months shall not qualify for such an exemption. To apply this new

provision, the reform shall also increase the number of investigators dedicated to the scrutiny of

taxpayers' declarations.

The reform shall be implemented by 30 September 2022.

Reform C6-R10: Specific Transfer Pricing Legislation

The objective of the measure is to prevent loss of public revenues through international tax

arbitrage.

The reform shall introduce enabling provisions for transfer pricing legislation in Malta’s legislative

framework. A consultation process shall follow before specific rules on transfer pricing relating to

the arms-length principle and advanced pricing agreements are proposed. Finally, such specific

transfer rules on transfer pricing shall enter into force. Training of involved parties (for example tax

practitioners and company representatives) shall also be carried out before the rules become

applicable.

The reform shall be finalised by 31 December 2023.

Reform C6-R11: Study on the relevance of measures relating to inbound and outbound dividend,

interest and royalty payments

The objective of the measure is to further mitigate aggressive tax planning risks.

The measure consists of an independent study and entry into force of legal act(s) concerning

inbound and outbound dividend, interest and royalty payments.

Reform C6-R12: Mitigating against ATP risks by individuals

The objective of the measure is to mitigate aggressive tax planning risks stemming from the

citizenship-by-investment scheme.

44

The reform shall implement a due diligence procedure to determine the original jurisdictions of tax

residence of applicants of the Citizenship by Naturalisation for Exceptional Services by Direct

Investment and inform the tax authorities of the original jurisdictions of tax residence about the

applicants being granted Maltese citizenship. The entry into force of the procedure shall be

determined by the publication of the respective revised guidelines and application forms.

The measure shall be implemented by 31 March 2022.

Investment C6-I1: Digitalisation in the justice system

The objective of this measure is to digitalise the administration of justice in line with the Digital

Justice Strategy.

The investment consists of digital solutions and tools for the justice system.

45

F.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.1 C6.R.1 Milestone

Entry into force of

Act XLV of 2020;

and Act XLIII of

2020

Provision in the law

indicating the entry

into force of Act

XLV of 2020 and

Act XLIII of 2020

Q3 2020

The Constitution was amended for the purpose of

providing for the appointment of the Chief Justice with the

approval of two-thirds of all the Members of the House of

Representatives; for a change in the composition of the

Judicial Appointments Committee so that the majority of

its members are members of the judiciary; and to provide

for the issuing of public calls for vacancies within the

judiciary. Act XLV of 2020 establishes a new procedure

through which members of the judiciary may be removed

from the Bench or undergo disciplinary procedures.

6.2 C6.R.1 Target Additional members

of the judiciary Number 42 47 Q2 2021

Following the adoption of Act XLIII of 2020, a call for

applications for the appointment of four judges was

published in the Government Gazette on 12 February 2021

and were appointed to the Bench in mid-April 2021

resulting in an increase in the headcount of Judges by

three. Apart from this, the call for applications for the

appointment of four Magistrates was published on

20 April 2021 and were appointed in June 2021 resulting

in an increase in the headcount of Magistrates by two. This

results in a net increase of five members of the judiciary.

6.4 C6.R.1 Milestone

Publication in the

Government

Gazette of the legal

act(s) on the

independence of

specialised tribunals

Publication in the

Government Gazette

of the legal act(s) on

the independence of

specialised tribunals

Q1 2026

A review of the independence of specialised tribunals shall

be carried out by the Maltese authorities, which shall

include at least (i) an assessment of the guarantees of

independence for appointments of members to said

specialised tribunals, (ii) an assessment of the guarantees

which provide for the tribunals' decisions to be reviewed

by the ordinary courts of appeal, and (iii) measures to

address the independence of specialised tribunals.

Publication in the Government Gazette of legal act(s) on

the independence of specialised tribunals, taking into

account the urgent opinion of the Council of Europe’s

Venice Commission published in July 2026. The legal

act(s) shall enter into force after a reasonable transition

period and no later than 31 December 2026. Such entry

into force shall be automatic and shall not entail any

further legal implementing measures.

46

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.5 C6.R.2 Milestone

Independent review

on the transfer of

offences and

summary cases

from the Police to

the Attorney

General’s Office

Independent review

on the transfer of

offences and

summary cases from

the Police to the

Attorney General's

Office

Q4 2024

A review shall be undertaken by an independent contractor

on the transfer of offences and summary cases from the

Police to the Attorney General’s Office. The review shall

formulate policy recommendations for the shift of offences

and summary cases. The executive summary of the review

shall be published.

6.6 C6.R.2 Milestone

Publication in the

Government

Gazette of the legal

act(s) on the transfer

of at least 30

categories of

offences in 2026,

from the Police to

the Attorney

General's Office

Publication in the

Government Gazette

of the legal act(s) on

the transfer of

offences in 2026

Q1 2026

Publication in the Government Gazette of the legal act(s)

on the transfer of at least 30 categories of offences in 2026.

The legal act(s) shall enter into force after a reasonable

period and no later than 31 December 2026. Such entry

into force shall be automatic and shall not entail any

further legal implementing measures.

6.7 C6.R.2 Target

Capacity building

within the AG’s

Office

Number 56 87 Q4 2022

According to the Attorney General's Office Human

Resources Plan (2021), a total of 31 new officers shall be

employed within the Office by the end of 2022. These

shall include the addition of new lawyers, Legal

Procurators, managers - including senior managers - ICT

officers, as well as other administrative and support staff.

6.8 C6.R.2 Milestone

Transfer of cases to

the Attorney

General's Office

Transfer of cases to

the Attorney

General's Office

Q4 2024

Entry into force of legal act(s) that shall grant the Attorney

General the power to decide whether a prosecution shall be

instituted in at least 30 categories of offences.

6.9 C6.R.2 Milestone

Entry into force of

Act No. XXVIII of

2021 entitled

Criminal Code

(Amendment No.5)

Act

Provision in the law

indicating the entry

into force of Act

No. XXVIII of 2021

entitled Criminal

Code (Amendment

No.5) Act

Q2 2021

Act No. XXVIII of 2021 entitled Criminal Code

(Amendment No.5) Act, entered into force on 4 June 2021,

provides for the necessary changes to be made to the

Criminal Code in order to provide more legislative clarity

following the taking over of prosecutions of serious

offences by the Attorney General.

6.10 C6.R.3 Milestone

Update of the 2008

National Anti-Fraud

and Corruption

Strategy

Online publication

of the Updated

National Anti-Fraud

and Corruption

Strategy

Q2 2021

The National Anti-Fraud and Corruption Strategy aims to

ensure a normative, institutional and operational

framework for the effective and efficient fight against

fraud and corruption in Malta, reflecting local

requirements and international obligations. The updated

Strategy was made public when it was tabled in Parliament

in the second quarter of 2021.

47

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.11 C6.R.3 Milestone

National Risk

Assessment and

follow up strategy

on fraud and

corruption.

Online publication

of the National

Fraud Risk

Assessment.

Q3 2022

In line with Action Point 3 of the NAFCS, a National Risk

Assessment (NRA) shall be undertaken by the Co-

ordinating Committee set up according to the Internal

Audit and Financial Investigations Act (Cap 461 of the

Laws of Malta) and published. The aim of the NRA is to

(i) maintain an effective risk-based regime to combat fraud

and corruption; (ii) prioritise and allocate public sector

resources efficiently; (iii) help National Authorities to

assess the adequacy of their controls and strengthen them

where necessary; (iv) increase awareness among the

general public; and (v) update the present Action Plan

which is an integral part of the NAFCS.

6.12 C6.R.3 Target

Training

programmes on

anti-corruption

Number 0 2 Q1 2024 Two training programmes, on Corruption Investigation

and Corruption Risk Management, shall be delivered.

6.13 C6.R.3 Milestone Document

Repository System

Document

Repository System

accessible to

institutions forming

part of the Co-

ordinating

Committee

Q4 2024

A document repository system shall be made accessible to

the institutions forming part of the Co-ordinating

Committee.

6.14 C6.R.3 Milestone Database collating

whistleblowing data

Database of

whistleblowing data Q2 2026

A database of whistleblowing data shall include (i) number

of complaints received; (ii) when the complaints were

received; (iii) when the complaints were concluded; (iv)

when the whistle-blower was informed of the outcome;

and (v) sectors reported.

6.15 C6.R.4 Milestone Entry into force of

Act XLVI of 2020

Provision in the law

indicating the entry

into force of Act

XLVI of 2020

Q3 2020

Act XLVI of 2020 grants further statutory reinforcement to

the Permanent Commission Against Corruption (PCAC).

The Act specifies the provisions on how the Chairperson

and members of the Commission are appointed. The Act

specifies that if in the PCAC’s opinion the conduct being

investigated is corrupt or connected with or conducive to

corrupt practices, the report is to be transmitted to the

Attorney General.

48

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.16 C6.R.4 Milestone

Recruitment of staff

and increase of

budget for the

Permanent

Commission

Against Corruption

Recruitment of staff

and increase of

budget

Q4 2024

The Permanent Commission Against Corruption shall have

an increased budget for 2024 (compared to the budget for

2021) and recruit at least two people.

6.17 C6.R.4 Milestone

Digital registry of

information on

corruption cases

shall be accessible

by the Permanent

Commission

Against Corruption

(PCAC)

Digital registry on

corruption cases

accessible by the

Permanent

Commission

Against Corruption

Q4 2024 A digital registry of cases shall be accessible to the

Permanent Commission Against Corruption.

6.18 C6.R.4 Milestone

Publication of an

internal Standard

Operating

Procedure for the

Permanent

Commission

Against Corruption

(PCAC)

Internal Standard

Operating Procedure

published

Q4 2024

Publication of an internal Standard Operating Procedure

which shall provide instructions to help workers carrying

out operations. The procedure shall include: (i) overview

of legal act(s) relating to the PCAC; (ii) functions executed

by the PCAC; (iii) definitions relating to corruption and

collusion; (iv) overview of legal act(s) and reporting

channels relating to whistle-blower protection; (v)

monitoring and compliance; (vi) record keeping/register;

(vii) responsibilities of the administrative staff; (viii)

procedures for investigations; and (ix) information on

training and communication.

6.19 C6.R.5 Target

Increase the number

of staff at the Asset

Recovery Bureau

Number 0 27 Q4 2023

A total of 27 officers (full-time equivalent) shall be

recruited within the Asset Recovery Bureau, including

research officers, managerial level officials as well as

administrative and support staff.

6.19a C6.R.5 Target

Recruitment of 7

people within the

Asset Recovery

Bureau

Number 0 7 Q4 2025

Seven people (full-time equivalent) shall be recruited

within the Asset Recovery Bureau.

6.20 C6.R.5 Milestone

Entry into force of

the Proceeds of

Crime Act V of

2021

Provision in the law

indicating the entry

into force of the

Proceeds of Crime

Act V of 2021

Q1 2021

The Proceeds of Crime Act (Act No. V of 2021) redefines

the structure of the Asset Recovery Bureau, whilst

outlining its relationship with and reinforcing its

independence from the Government.

49

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.21 C6.R.6 Milestone

Entry into force of

Act XIX of 2020

amending the Police

Act

Provision in the law

indicating the entry

into force of Act

XIX of 2020

amending the Police

Act

Q2 2020

Act XIX of 2020 amends the Police Act (Chapter 164 of

the Laws of Malta) and Article 92 of the Constitution of

Malta to establish a transparent and competitive process of

appointment for the office of Commissioner of Police.

6.22 C6.R.7 Milestone

Entry into force of

Act No XLI of 2020

on the judicial

review of decisions

not to prosecute by

the Attorney

General

Entry into force of

Act No XLI of 2020 Q3 2020

Act XLI of 2020 amends the Constitution, the Criminal

Code, and the Code of Organisation and Civil Procedure.

It provides for a judicial review of decisions of the

Attorney General not to prosecute on the ground of

illegality or unreasonableness. The Permanent

Commission Against Corruption (PCAC), the

Ombudsman, the Commissioner for Standards of Public

Life and the Auditor General have all been given the status

of injured party at law. These institutions may therefore

seek judicial review individually in cases referred by them

to the Attorney General in the same manner as the injured

party.

6.23 C6.R.7 Milestone

Independent review

of the provision for

injured parties (in

Act XLI of 2020) to

appeal the decision

of the Attorney

General not to

prosecute

Delivery of

independent review

of the provision for

injured parties (in

Act XLI of 2020) to

appeal the decision

of the Attorney

General not to

prosecute

Q2 2024

The independent qualitative review shall assess (i) whether

an appeal against non-prosecution by the Attorney General

should also be made possible when there is no prosecution

within a reasonable time, and (ii) whether the “injured

parties” mentioned in Act XLI of 2020 should also be able

to appeal against non-prosecution in all cases.

6.24 C6.R.7 Milestone

Entry into force of

legal act(s) on the

judicial review for

injured parties to

appeal the decision

of the Attorney

General not to

prosecute

Provision indicating

entry into force of

legal act(s)

Q1 2026

Taking into account the recommendations of the

independent review of the provision for injured parties (in

Act XLI of 2020) to appeal the decision of the Attorney

General not to prosecute, legal act(s) shall enter into force

in order to adjust the possibility of the 'injured parties'

mentioned in Act XLI of 2020 being able to: (i) appeal

against non-prosecution by the Attorney General when

there is no prosecution within a reasonable time; (ii)

appeal against non-prosecution in all cases and not only

when they reported these acts to the Attorney General.

50

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.25 C6.R.8 Milestone

Completed

implementation of

the action plan of

the National anti-

money

laundering/combati

ng terrorist

financing/targeted

financial sanctions

(AML/CFT/TFS)

strategy and action

plan for 2021 –

2023

Online publication

of the final report

demonstrating that

the action plan of

the national

AML/CMT/TFS

strategy and action

plan for 2021-2023

has been fully

implemented

Q4 2023

All the actions under the seven Policy Goals defined in the

national AML/CMT/TFS strategy and action plan for

2021-2023 (including a new iteration of the national risk

assessment) have been fully implemented. This shall be

demonstrated in a final report published by the National

Coordinating Committee on Combating Money

Laundering and Funding of Terrorism (NCC) following

consultation with the main stakeholders. The main

stakeholders shall include the Ministries responsible for

Finance and Justice, the Asset Recovery Bureau, the

Central Bank of Malta, the Commissioner for Revenue,

Financial Intelligence Analysis Unit (FIAU), Malta

Financial Services Authority (MFSA), Malta Gaming

Authority (MGA), Malta Police Force and the Attorney

General.

6.26 C6.R.8 Target Number of annual

AML/CFT trainings Number 5 10 Q2 2022

10 AML/CFT trainings shall be provided in 2021. The

specific content of the courses shall be specified on the

basis of the training needs identified by the specific NCC

subcommittee that coordinates AML/CFT/CPF training

and outreach initiatives. Training shall be open in

particular to the members of the same sub-committee.

Members of this sub-committee are the:

- Financial Intelligence Analysis Unit (FIAU)

- Malta Financial Services Authority (MFSA)

- Malta Gaming Authority (MGA)

- Malta Police Force (MPF)

- Office of the Attorney General (AGO)

- Office of the Commissioner for Revenue (OCfR)

- Malta Security Services (MSS)

- Malta Business Registry (MBR)

- Department of Customs

- Asset Recovery Bureau (ARB)

- Office of the Commissioner for Voluntary Organisations

(OCVO)

- Sanctions Monitoring Board (SMB).

6.27 C6.R.8 Milestone

Lifting of the

increased

monitoring process

by FATF

FATF’s written

conclusion that

Malta is no longer

subject to the

FATF’s increased

monitoring process

Q4 2023

The Financial Action Task Force (FATF) has provided an

evaluation of Malta’s AML framework in June 2021 and

issued an action plan. The milestone requires FATF’s

written conclusion that Malta is no longer subject to the

FATF’s increased monitoring process.

51

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.28 C6.R.9 Milestone

Entry into force of a

revised corporate

tax return to collect

information on

dividends derived

from bodies of

persons resident in

jurisdictions listed

in the Code of

Conduct Group list

non-cooperative

jurisdictions.

Entry into force of a

revised corporate

tax return

Q2 2022

Entry into force of revised corporate tax return for the

fiscal year 2021. This is an administrative measure through

which the tax return shall request data relative to dividends

derived from bodies of persons resident in jurisdictions

listed in the Code of Conduct Group list of non-

cooperative jurisdictions.

6.29 C6.R.9 Target

Assignment of

dedicated staff for

the scrutiny of

taxpayers in this

area of taxation

Assignment of

dedicated staff for

the scrutiny of

taxpayers in this

area of taxation

Number 0 2 Q3 2022

Two investigators are assigned to work full time for the

scrutiny of taxpayers in respect of holdings in bodies of

persons resident in jurisdictions listed in the Code of

Conduct Group list of non-cooperative jurisdictions.

6.30 C6.R.10 Milestone

Entry into force of

the relevant

enabling provision

for the introduction

of transfer pricing

rules

Provision in the law

indicating entry into

force of the relevant

enabling provision

for the introduction

of transfer pricing

rules

Q2 2021

The legal provisions (Budget Measures Implementation

Act) required for the introduction of transfer pricing are

enacted and fully in force.

6.31 C6.R.10 Milestone

Consultation of

stakeholders and

drafting of specific

transfer-pricing

rules

Consultation of

stakeholders and

drafting of specific

transfer-pricing

rules completed and

the draft legal notice

transmitted to the

Cabinet for approval

Q2 2022

The consultation with stakeholders is completed. The draft

legal notice on specific transfer pricing rules is transmitted

to Cabinet for approval. The consultation shall aim to

obtain information that has relevance to the scope and the

procedure relating to advance pricing agreements. The

main stakeholders shall be made up of representative

bodies of professionals that deal with taxation matters and

shall include accountants, lawyers and other tax

practitioners.

6.32 C6.R.10 Milestone

Entry into force of

specific transfer-

pricing rules

Entry into force of

specific transfer-

pricing rules

Q4 2022

Entry into force of specific rules relating to the arms-

length principle and advanced pricing agreements. These

rules shall become applicable as from Q1 of 2024.

52

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.33 C6.R.10 Target

Tasking and

training of staff by

tax authorities to

specialise on

application of

transfer pricing

rules

Number 2 8 Q2 2023

Additional six officials are tasked to work on transfer

pricing. All eight officials working on the application of

transfer pricing rules are trained to work with the Office of

the Commissioner for Revenue. It is envisaged that

training shall take the form of courses whereby each

officer shall receive a minimum of 80 hours of training on

transfer pricing.

6.34 C6.R.10 Target

Training events for

tax practitioners and

company

representatives

Number 0 2 Q4 2023

At least two training events shall be provided spanning a

total of 12 hours and shall cover topics such as, but not

limited to, the scope, Advance Pricing Agreements and

transfer pricing methods. A total target audience of at least

250 tax practitioners and company representatives are

invited for these events.

6.35 C6.R.11 Milestone

Study concerning

measures relating to

inbound and

outbound dividend,

interest and royalty

payments

The full study

concerning

measures relating to

inbound and

outbound dividend,

interest and royalty

payments is shared

with the European

Commission

Q4 2022

The study shall be provided by an independent contractor

engaged through public procurement procedures. The

study shall analyse the state of play and provide

recommendations for legal measures necessary to address

outbound and inbound dividend, interest and royalty

payments, between companies established in Malta and

related companies established in jurisdictions that either

form part of the EU list of non-cooperative jurisdictions or

that are considered to be zero-tax or low-tax jurisdictions.

The recommendations shall provide analysis and concrete

proposals to strengthen anti-Base Erosion and Profit

Shifting measures to prevent tax fraud and tax evasion.

The Executive Summary shall be published on the

government’s website and the full study shall be shared

with the European Commission.

6.36 C6.R.11 Milestone

Entry into force of

legal act(s) related

to inbound and

outbound payments

Provision in the

legal act(s)

indicating the entry

into force

Q3 2024

Entry into force of legal act(s) to mitigate risks identified

from the study on inbound and outbound payments

including dividends, interest and royalties.

53

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.37 C6.R.12 Milestone

Entry into force of

spontaneous

exchange of

information (SEOI)

Publication of the

guidelines and

application forms

requiring

spontaneous

exchange of

information

Q1 2022

Entry into force of a spontaneous exchange of information

mechanism, whereby Malta’s tax authorities exchange

information with original jurisdictions of tax residence of

successful applicants of the Citizenship by Naturalisation

for Exceptional Services by Direct Investment (Citizenship

Regulations) that are party to the OECD Convention on

Mutual Assistance in Tax Matters and to other

jurisdictions that are not party to this Convention but with

which Malta has a bilateral exchange of information

mechanism in place, about persons that shall be granted

citizenship under this scheme in future. The entry into

force is determined by the publication of the respective

revised guidelines and application forms.

6.38 C6.I.1 Milestone

Entry into force of

(i) Act No. LIII of

2020 (Amendment

No. 2); and (ii) Act

No. III of 2021

(Amendment No. 2)

on digitalisation of

the law courts.

Entry into force of

(i) Act No. LIII of

2020 (Amendment

No. 2) and (ii) Act

No. III of 2021

(Amendment No. 2)

on digitalisation of

Law Courts

Q1 2021

Act LIII of 2020 (Amendment No. 2) amended the Code

of Organization and Civil Procedure and made it possible

for civil proceedings to be held via live video conferencing

facilities. Act III of 2021 (Amendment No. 2) amended the

Criminal Code and made it possible for criminal judicial

acts to be filed electronically.

6.39 C6.I.1 Target

Expenditure

incurred for the

digitalisation of the

justice system

EUR 0 2 000 000 Q4 2023

At least EUR 2 000 000 has been paid out in line with

contractual obligations in relation to the digitalisation of

the Justice system. The investment shall consist of: (a)

Mapping of Processes & Redesign of Processes towards

end-to-end Digital Processes, Project Management, Legal

and overall Consultancy and CBA Support; and (b) a

number of digital solutions, including (i) Courts of Justice

Agency: Laptops and working stations for increased

mobility of users; (ii) Courts of Justice Agency: Virtual

Sittings Solution; (iii) Courts of Justice Agency: Wi-Fi;

(iv) Legal Aid Case Management System; (v) Freedom of

Information System; (vi) Conference and training rooms

equipment and software; (vii) Experimentation and

Specialisation Initiatives.

54

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion Description of each milestone and target Unit of

measure Baseline Goal Quarter Year

6.40 C6.I.1 Target

Expenditure

incurred for the

digitalisation of the

justice system

EUR 2 000 000 4 750 000 Q2 2026

At least EUR 2 750 000 has been paid out in relation to the

digitalisation of the Justice system through a number of

digital solutions, including (i) Courts of Justice Agency;

Virtual Sittings Solution; (ii) Courts of Justice Agency;

Wi-Fi; (iii) Criminal Record Certificate System; (iv) State

Advocate case management system; (v) Freedom of

Information System; (vi) Asset Recovery System; (vii)

NTG Termination of Mandates Solution; (viii) Integrated

closed circuit television and security system; (ix)

Conference/Training Rooms equipment and software; (x)

Experimentation and Specialisation Initiatives; (xi)

Mediation Centre Information System; (xii) Ministry

responsible for justice: Laptops and working stations; (xiii)

Mapping of Processes & Redesign of Processes towards

end-to-end Digital Processes, Project Management, Legal

and overall Consultancy and CBA Support.

55

G. Component 7: REPowerEU

The REPowerEU chapter addresses the challenge of reducing reliance on fossil fuels. The

objectives of the component are to facilitate the deployment of renewable energy sources and to

increase the capacity of the electricity distribution network while helping to integrate renewable

energy sources.

Investment into the strengthening and widening of the electricity network has a cross-border

dimension, especially in the Mediterranean region. The investment is expected to allow to construct

a feeder link with the second Malta-Italy electricity interconnector, thereby contributing to a more

integrated common energy market, securing the energy supply in the Union as a whole and creating

European added value.

The REPowerEU chapter contributes to addressing the Country Specific Recommendation (Country

Specific Recommendation 4 in 2022) and in particular, reducing the overall reliance on fossil fuels

by accelerating the deployment of renewables, promoting and enabling investments in wind and

solar energy, further upgrading Malta’s electricity transmission and distribution grids, and creating

incentives for electricity storage to supply firm, flexible and fast-responding energy.

It is expected that no measure in this component does significant harm to environmental objectives

within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description

of the measures and the mitigating steps set out in the recovery and resilience plan in accordance

with the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

G.1. Description of the reforms and investments for non-repayable financial support

Reform C7-R1: Review of permit-granting procedures for renewable energy projects and of

requirements for buildings

The objective of this reform is to increase the share of renewables in Malta’s energy mix.

The reform consists of the entry into force of legal act(s) setting shortened timelines for permit-

granting procedures for renewable energy projects and in the introduction of new requirements for

renewable energy generation in buildings.

Investment C7-I1: Works and equipment for distribution centres; supply, trenching and laying of

cables

The objective of this investment is to address internal electricity transmission and distribution

bottlenecks, which also facilitates the integration of renewable energy.

The measure consists of the signature of contracts and the provision of partial or provisional

acceptance certificates for distribution centres and cables.

Investment C7-I2: Reduction of primary energy demand of private sector buildings

The objective of this investment is to continue the investment commenced in C1-I1, namely to

increase energy efficiency, reduce energy demand, lower carbon emissions and limit energy waste

in private sector buildings.

56

The investment consists of the reduction of primary energy demand (PED) of at least 30% in private

buildings.

57

G.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion

Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

7.1 C7.R.1 Milestone

New requirements for

renewable energy

generation in

residential and non-

residential buildings

Provision in the legal

act(s) indicating the entry

into force

Q2 2024

Entry into force of legal act(s) that shall require

compliance with the updated Technical Document F

introducing new requirements for renewable energy

generation in residential and non-residential

buildings.

7.3 C7.R.1 Milestone

Entry into force of

legal act(s) setting

shortened timelines for

permit-granting

procedures of

renewable energy

installations on

greenhouses and

renewable energy

projects

Provision in the legal

act(s) indicating the entry

into force

Q4 2024

The legal act(s) shall set shortened timelines for

permit-granting procedures of (i) renewable energy

installations on greenhouses and (ii) renewable

energy projects.

7.4 C7.I.1 Milestone

Signature of contracts

for investments in

distribution centres and

cables

Signature of contracts for

investments in distribution

centres and cables

Q4 2024

Contracts shall be signed for the following:

1) installation or commissioning of a 132kV

distributing feeder line or cable circuit;

2) construction works and supply of equipment for

two distribution centres;

3) civil works and supply of equipment for the

Hospital and Mosta distribution centres;

4) 15km of cables.

58

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion

Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

7.6 C7.I.1 Milestone Distribution centres

and cables

Partial or provisional

acceptance certificates for

distribution centres, cables

and a distribution feeder

line or cable circuit

Q2 2026

Partial acceptance certificates shall be provided for:

1) a 132kV distributing feeder line or cable circuit;

2) construction and equipment for two distribution

centres;

3) civil works and equipment for the Hospital

distribution centre;

4) trenching and laying of 57km of cables.

Provisional acceptance certificates shall be provided

for:

1) civil works and equipment for the Mosta

distribution centre;

2) supply of 57km of cables.

7.7 C7.I.2 Target

Reduction of primary

energy demand in

private sector

buildings

Percentage 0 30% Q2 2026

Reduction of primary energy demand (PED) of at

least 30% in private buildings covering an area of at

least 40 605 m2. 

59

2. ESTIMATED TOTAL COST OF THE RECOVERY AND RESILIENCE PLAN

The estimated total costs of the modified RRP including the REPowerEU chapter of Malta is

EUR 329 083 116.

The estimated total costs of the REPowerEU chapter is EUR 74 555 027. In particular, the estimated

total costs of the measures referred to in Article 21c(3), point (a) of Regulation (EU) 2023/435 is

EUR 0 whilst the costs of the other measures in the REPowerEU chapter is EUR 74 555 027.

SECTION 2: FINANCIAL SUPPORT

1. Financial contribution

The instalments referred to in Article 2(2) shall be organised in the following manner:

1.1. First Instalment (non-repayable support):

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

1.1 C1.R.1 Milestone Entry into force of the Building and Construction Authority

Act

1.5 C1.R.2 Milestone Entry into force of the updated Environment Protection Act

1.8 C1.R.2 Milestone Adoption of the Construction and Demolition Waste

Strategy for Malta

1.22 C1.I.3 Milestone Energy Performance Audit of two Public Schools

2.1 C2.R.1 Milestone National Household Travel Survey

2.6 C2.R.4 Milestone Agreement with Local Councils Association on the

regeneration areas in urban areas

2.9 C2.R.5 Target 15 office facilities that enable remote work for public service

officials across the Maltese Islands operational

3.3 C3.R.2 Milestone Adoption of Malta's Smart Specialisation Strategy

5.8 C5.R.3 Target Setting up of two autism units (physical spaces equipped

with equipment and trained education personnel) in middle

schools

6.1 C6.R.1 Milestone Entry into force of Act XLV of 2020; and Act XLIII of 2020

6.2 C6.R.1 Target Additional members of the judiciary

6.9 C6.R.2 Milestone Entry into force of Act No. XXVIII of 2021 entitled

Criminal Code (Amendment No.5) Act

6.10 C6.R.3 Milestone Update of the 2008 National Anti-Fraud and Corruption

Strategy

6.15 C6.R.4 Milestone Entry into force of Act XLVI of 2020

6.20 C6.R.5 Milestone Entry into force of the Proceeds of Crime Act V of 2021

6.21 C6.R.6 Milestone Entry into force of Act XIX of 2020 amending the Police Act

6.22 C6.R.7 Milestone Entry into force of Act No XLI of 2020 on the judicial

review of decisions not to prosecute by the Attorney General

6.30 C6.R.10 Milestone Entry into force of the relevant enabling provision for the

introduction of transfer pricing rules

6.38 C6.I.1 Milestone Entry into force of (i) Act No. LIII of 2020 (Amendment No.

2); and (ii) Act No. III of 2021 (Amendment No. 2) on

digitalisation of the law courts

60

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

Instalment

Amount EUR 60 116 664

1.2. Second Instalment (non-repayable support):

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

1.3 C1.R.1 Milestone Training and certification of professionals in the

construction industry

1.9 C1.R.2 Milestone Adoption of standards for the Construction Industry

1.11 C1.R.2 Milestone Recovery of construction and demolition waste through

backfilling void spaces (quarries)

1.12 C1.R.2 Milestone Setting up of five municipal regional bodies responsible for

waste collection across Malta and Gozo

1.13 C1.R.2 Milestone Entry into force of revised legislation on packaging material

to allow for the regional collection of packaging waste

1.17 C1.I.1 Milestone Launch of call for applications for grants targeting the

renovation of private sector buildings

1.19 C1.I.2 Milestone Energy Performance Audit of Mount Carmel Public

Hospital

1.23 C1.I.3 Milestone Contracted services for the renovation of two Public Schools

1.25 C1.I.4 Milestone Contracted services for construction works of a near carbon

neutral school

2.4 C2.R.3 Milestone Publication of the Sustainable Urban Mobility Plan for the

Valletta Region

2.8 C2.R.5 Milestone Publication of the Remote Working Policy for Government

Employees

2.15 C2.I.2 Milestone Open call for applications for electric vehicles and bicycles

in the private sector, including scrappage scheme

3.1 C3.R.1 Milestone Launch of a scholarship scheme for students to become ICT

professionals

3.10 C3.I.3 Target Expenditure incurred in relation to the modern digital

workplace and solutions to improve the front-end customer

experience

3.14 C3.I.4 Milestone Launch of the calls for applications

4.1 C4.R.1 Milestone Study on barriers and facilitators for better integration and

wellbeing of the foreign workforce

4.5 C4.R.1 Milestone Report on obesity prevalence amongst 4–5-year-olds in the

Maltese population

4.7 C4.R.2 Milestone Review of the regulatory framework related to the Blood

Bank, Tissue and Cell Centre

4.11 C4.I.2 Milestone Contract signed for the procurement of Magnetic Resonance

Linear Accelerator equipment solution at Sir Anthony

Mamo Oncology Centre

4.13 C4.I.2 Milestone All contracts signed for the digital pathology services at the

histopathology department at Mater Dei hospital

5.6 C5.R.2 Milestone Launch of the e-College

5.9 C5.R.3 Target Setting-up of two new multi-sensory learning rooms

(MSLR) (physical spaces equipped with equipment and

trained education personnel) in colleges

5.12 C5.R.5 Milestone Assessment of unemployment benefits

61

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

5.16 C5.R.6 Milestone Follow-up of the Pensions Review Report with policy

proposals

6.7 C6.R.2 Target Capacity building within the AG’s Office

6.11 C6.R.3 Milestone National Risk Assessment and follow up strategy on fraud

and corruption

6.26 C6.R.8 Target Number of annual AML/CFT trainings

6.28 C6.R.9 Milestone Entry into force of a revised corporate tax return to collect

information on dividends derived from bodies of persons

resident in jurisdictions listed in the Code of Conduct Group

list non-cooperative jurisdictions

6.29 C6.R.9 Target Assignment of dedicated staff for the scrutiny of taxpayers

in this area of taxation

6.31 C6.R.10 Milestone Consultation of stakeholders and drafting of specific

transfer-pricing rules

6.32 C6.R.10 Milestone Entry into force of specific transfer-pricing rules

6.35 C6.R.11 Milestone Study concerning measures relating to inbound and

outbound dividend, interest and royalty payments

6.37 C6.R.12 Milestone Entry into force of spontaneous exchange of information

(SEOI)

Instalment

Amount EUR 78 055 270

1.3. Third Instalment (non-repayable support):

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

1.2 C1.R.1 Milestone Building and Construction Authority equipped with

resources

1.4 C1.R.1 Target Professionals in the construction industry eligible for a

certificate

1.10 C1.R.2 Milestone Entry into force of a new regulatory framework for the

management of construction and demolition waste

1.15 C1.I.1 Milestone Contracted services for the renovation of public buildings

1.24 C1.I.3 Target Reduced primary energy demand in two Public Schools

1.26 C1.I.4 Target Construction of a near-carbon neutral school completed

2.3 C2.R.2 Milestone Access to fare-free scheduled road public transport for all

holders of a personalised Tallinja Card

2.10 C2.R.6 Milestone Completion of study on enhanced mobility management in

the Maltese public service

2.16 C2.I.2 Target Number of grants awarded for electric vehicles under the

scheme for the private sector

2.18 C2.I.3 Milestone Contracted services for the supply of electric vehicles for the

public service fleet

3.2 C3.R.1 Target Individuals supported to mitigate digital divide

3.5 C3.I.1 Target Increased uptime of the Digital Backbone

4.2 C4.R.1 Milestone Bespoke tool for workforce planning

4.6 C4.R.1 Target Implementation of neonatal hearing screening programme

4.9 C4.I.1 Milestone Contracted services for the construction of a Blood, Tissue

and Cell Centre

62

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

4.12 C4.I.2 Milestone Magnetic Resonance Linear Accelerator equipment

operational and open to users

5.2 C5.R.1 Target Teachers trained in the Reading Recovery (RR) Programme

5.5 C5.R.2 Milestone Implementation of elements included in the Roadmap on

developing a guidance system, capacity building for adult

learning professionals and establishing guidance networks

6.19 C6.R.5 Target Increase the number of staff at the Asset Recovery Bureau

6.25 C6.R.8 Milestone Completed implementation of the action plan of the National

anti-money laundering/combating terrorist financing/targeted

financial sanctions (AML/CFT/TFS) strategy and action plan

for 2021 – 2023

6.27 C6.R.8 Milestone Lifting of the increased monitoring process by FATF

6.33 C6.R.10 Target Tasking and training of staff by tax authorities to specialise

on application of transfer pricing rules

6.34 C6.R.10 Target Training events for tax practitioners and company

representatives

6.39 C6.I.1 Target Expenditure incurred for the digitalisation of the justice

system

Instalment

Amount EUR 57 165 752

1.4. Fourth Instalment (non-repayable support):

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

1.20 C1.I.2 Milestone Contract(s) signed for the renovation of block 1 of

Mount Carmel Public Hospital

2.5 C2.R.3 Target Bicycle racks and pumps installed in nine of the local

councils covered by the Sustainable Urban Mobility

Plan for the Valletta Region

2.17 C2.I.2 Target Number of grants awarded for electric vehicles under

the scheme for the private sector

2.19 C2.I.3 Target Replacement of vehicles within the Government fleet

with electric (zero emissions) vehicles

3.11 C3.I.3 Milestone Acquisition or renewal of Microsoft 365 (or

equivalent) licences

3.12 C3.I.3 Milestone Acquisition of laptops and telephony licences

3.13 C3.I.3 Milestone Digital public services for citizens and businesses

4.3 C4.R.1 Milestone Reports on addressing policy recommendations on

wellbeing and integration of foreign workforce within

the Ministry for Health

4.8 C4.R.2 Milestone Entry into force of legal act(s) on the Blood Bank,

Tissue and Cell Centre

4.14 C4.I.2 Milestone Delivery of equipment for digital pathology services at

the histopathology department at Mater Dei hospital

5.1 C5.R.1 Target Number of students trained in the Reading Recovery

(RR) Programme

5.4 C5.R.1 Milestone Data Warehouse Solution

5.13 C5.R.5 Milestone Monitoring report on unemployment benefits in Malta

63

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

6.5 C6.R.2 Milestone Independent review on the transfer of offences and

summary cases from the Police to the Attorney

General’s Office

6.8 C6.R.2 Milestone Transfer of cases to the Attorney General's Office

6.12 C6.R.3 Target Training programmes on anti-corruption

6.13 C6.R.3 Milestone Documentary Repository System

6.16 C6.R.4 Milestone Recruitment of staff and increase of budget for the

Permanent Commission Against Corruption

6.17 C6.R.4 Milestone Digital registry of information on corruption cases

shall be accessible by the Permanent Commission

Against Corruption (PCAC)

6.18 C6.R.4 Milestone Publication of an internal Standard Operating

Procedure for the Permanent Commission Against

Corruption (PCAC)

6.19a C6.R.5 Target Recruitment of 7 people within the Asset Recovery

Bureau

6.23 C6.R.7 Milestone Independent review of the provision for injured parties

(in Act XLI of 2020) to appeal the decision of the

Attorney General not to prosecute

6.36 C6.R.11 Milestone Entry into force of legal act(s) related to inbound and

outbound payments

7.1 C7.R.1 Milestone New requirements for renewable energy generation in

residential and non-residential buildings

7.3 C7.R.1 Milestone Entry into force of legal act(s) setting shortened

timelines for permit-granting procedures of renewable

energy installations on greenhouses and renewable

energy projects

7.4 C7.I.1 Milestone Signature of contracts for investments in distribution

centres and cables

Instalment

Amount EUR 60 406 019

1.5. Fifth Instalment (non-repayable support):

Sequential Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

1.16 C1.I.1 Target Reduction of primary energy demand in public

buildings

1.21 C1.I.2 Target Reduction of primary energy demand in block 1 of

Mount Carmel Public Hospital

1.27 C1.I.5 Target Installed generation capacity of photovoltaics in

public spaces

2.2 C2.R.1 Milestone Raising awareness of sustainable or active mobility

2.11 C2.R.6 Milestone Digital platform for mobility with public service

vehicles

2.22 C2.R.7 Milestone Public services shifted to off-peak hours and changes

to public bus services

2.17a C2.I.2 Target Number of grants awarded for the purchase of

electric vehicles in the private sector, together with

mandatory scrappage of an existing vehicle

3.6 C3.I.1 Milestone Level 4 in NIST cyber security framework

3.8 C3.I.2 Milestone IT systems and tools accessible for use

64

Sequential Number

Related

Measure

(Reform or

Investment)

Milestone/Target Name

3.11a C3.I.3 Milestone Acquisition or renewal of Microsoft 365 Copilot

licences

3.13a C3.I.3 Milestone National Single Window for Customs and an

Address-Based Geolocated Image Capture of Maltese

Building Units

3.15 C3.I.4 Milestone Grants for digitalisation of the private sector

3.16 C3.I.5 Milestone Acquisition of mobile infrastructure and software for

digitalisation of the urban ecology

3.17 C3.I.6 Milestone Signature of the Contribution Agreement between the

government of Malta and the European Commission

3.18 C3.I.6 Target Financing or investment operations approved by the

InvestEU Investment Committee

4.10 C4.I.1 Milestone Constructed Blood, Tissue and Cell Centre

5.10 C5.R.3 Milestone Acquisition of IEP Module, circulars, and the

publication of the revised Policy on Inclusive

Education in Schools

5.11 C5.R.4 Milestone Monitoring and Evaluation Report submitted and

approval of appointment of two people within the

Policy Monitoring and Evaluation Directorate

5.14 C5.R.5 Milestone Issuance of certificates, entry into force of the Work-

Life Balance for Parents and Carers Regulations, and

the publication of the National Employment Policy

2021-2030

5.15 C5.R.5 Milestone Training for educational personnel, entry into force

of a legal act, publication of a report, and publication

of the Gender Equality and Mainstreaming Strategy

and Action Plan 2022-2027

6.4 C6.R.1 Milestone Publication in the Government Gazette of the legal

act(s) on the independence of specialised tribunals

6.6 C6.R.2 Milestone Publication in the Government Gazette of the legal

act(s) on the transfer of at least 30 categories of

offences in 2026, from the Police to the Attorney

General’s Office

6.14 C6.R.3 Milestone Database collating whistleblowing data

6.24 C6.R.7 Milestone Entry into force of legal act(s) on the judicial review

for injured parties to appeal the decision of the

Attorney General not to prosecute

6.40 C6.I.1 Target Expenditure incurred for the digitalisation of the

justice system

7.6 C7.I.1 Milestone Distribution centres and cables

7.7 C7.I.2 Target Reduction of primary energy demand in private

sector buildings

Instalment

Amount EUR 72 487 223

65

SECTION 3: ADDITIONAL ARRANGEMENTS

1. Arrangements for monitoring and implementation of the recovery and resilience plan

The monitoring and implementation of the Maltese RRP shall take place in accordance

with the following arrangements:

The Ministry responsible for the management of EU funds is the authority in charge of the

coordination, management and control of the overall implementation process of the RRP. It

shall ensure the respect of the established national and EU rules, take measures to provide

adequate administrative capacity and carry out the required consultation, communication

and information activities related to Regulation (EU) 2021/241. Within the Ministry

responsible for the management of EU funds, the Planning and Priorities Coordination

Division (PPCD) is entrusted with the effective implementation of the RRP, in particular

with the function identified in Article 22(2) and (3) and shall take all the appropriate

measures to protect the financial interests of the Union and to ensure that the use of funds

in relation to measures in the Maltese RRP complies with the applicable EU and national

law. It shall also be responsible for drawing up and signing of management declaration

accompanying the requests for payment. The responsible institutions involved in the

execution of each reform and investment shall liaise on a regular basis with the Ministry

responsible for the management of EU funds. The Internal Audit and Investigations

Department has been designated as the audit authority for the purposes of the RRP, as an

independent body. The audit authority shall be responsible for drawing up and signing the

Summary of audits accompanying the request for payment. The audit authority’s strategy

comprises both system audits, focusing on the system in place for the reporting of the

milestones and targets, and on the system to prevent detect and correct serious

irregularities, including the IT system, as well as substantive testing based on an adequate

sampling.

2. Arrangements for providing full access by the Commission to the underlying data

The Ministry responsible for the management of EU Funds, as the central coordinating

body for the implementation of the Maltese RRP is the contact point for the Commission.

It acts as a coordinating body for monitoring the progress on milestones and targets and for

providing all necessary arrangements for submitting payment requests. It coordinates the

reporting of milestones and targets, relevant indicators, but also qualitative financial

information and other data, such as on final recipients. The management and information

system maintained by the PPCD shall be used to collect the necessary information to

monitor the whole life cycle of the reforms and investments, including milestones,

targets and information supporting the monitoring of their financial implementation.

In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of the

relevant agreed milestones and targets in Section 2.1 of this Annex, Malta shall submit to

the Commission a duly justified request for payment of the financial contribution. Malta

shall ensure that, upon request, the Commission has full access to the underlying relevant

data that supports the due justification of the request for payment, both for the assessment

of the request for payment in accordance with Article 24(3) of Regulation (EU) 2021/241

and for audit and control purposes.

EN EN

EUROPEAN COMMISSION

Brussels, 13.7.2026 SWD(2026) 196 final

COMMISSION STAFF WORKING DOCUMENT

Updated climate tracking and digital tagging of the recovery and resilience plan of

Malta

Accompanying the document

Proposal for a COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 5 October 2021 on the approval of the

assessment of the recovery and resilience plan for Malta

{COM(2026) 376 final}

Updated climate tracking and digital tagging of the recovery and resilience plan of Malta

The table below presents the detailed application of the climate tracking and digital tagging

methodologies set out respectively in Annexes VI and VII to Regulation (EU) 2021/241 in the

modified Maltese recovery and resilience plan.

Int. Field = intervention field

Coeff. = Coefficient for the calculation of support to climate change objectives and to digital

transition, on the basis of Annex VI and Annex VII of the RRF Regulation

New or revised measures are marked in yellow to distinguish them from the unchanged

measures in the RRP.

Measure/

Sub-measure

ID

Measure/Sub-measure

name

Budget

(EUR m)

Climate Digital

Int.

Field

Coeff.

%

Int.

Field

Coeff.

%

C1.I.1

Reduction of primary energy

demand of public and private

sector buildings

8.6 026bis 100%

C1.I.2

Reduction of primary energy

demand of one public

hospital block

5,3 026bis 100%

C1.I.3

Investment in the renovation,

deep retrofitting and

renewable energy in public

schools

10 026bis 100%

C1.I.4 (a)

Investment in the

construction of a pilot near

carbon-neutral school to

serve as a model for the

future and provide a future-

proof learning experience to

students - EE sub measure

14,4 025ter 40%

C1.I.4 (b)

Investment in the

construction of a pilot near

carbon-neutral school to

serve as a model for the

future and provide a future-

proof learning experience to

students - RES sub measure

0,5 029 100%

Measure/

Sub-measure

ID

Measure/Sub-measure

name

Budget

(EUR m)

Climate Digital

Int.

Field

Coeff.

%

Int.

Field

Coeff.

%

C1.I.5 Renewable energy in public

spaces 3 029 100%

C2.I.2

Enhancing the uptake of

electric vehicles in the

private sector

84,3 074 100%

C2.I.3 Decarbonising the public

sector fleet 10 074 100%

C3.I.1 (a)

Strengthening the resilience,

security and efficiency of the

government digital backbone

and investing in appropriate

digital solutions, devices and

tools that will enable

Government to provide

proactive action, secure

services and streamlined

operations to citizens and the

business sector - capital costs

sub-measure

14,1 011 100%

C3.I.1 (b)

Strengthening the resilience,

security and efficiency of the

government digital backbone

and investing in appropriate

digital solutions, devices and

tools that will enable

Government to provide

proactive action, secure

services and streamlined

operations to citizens and the

business sector - training sub-

measure

2,6 108 100%

C3.I.2

Digitalisation of the

Merchant Shipping

Directorate within Transport

Malta

3,2 084 100%

Measure/

Sub-measure

ID

Measure/Sub-measure

name

Budget

(EUR m)

Climate Digital

Int.

Field

Coeff.

%

Int.

Field

Coeff.

%

C3.I.3

Further digitalisation and

modernisation of the public

administration

17.5

011 100%

C3.I.4

Rolling out measures to

support the digitalisation of

the private sector

12 010 100%

C3.I.5

Mobile infrastructure and

software for digitalisation of

urban ecology

7.8 011 100%

C4.I.2 (b)

Enhancing the resilience of

the health system through

digitalisation and new

technologies - digitalisation

sub-measure

2.3 095 100%

C6.I.1 Digitalisation in the justice

system 4.7

011

quater 100%

C7.I.1

(REPowerEU

chapter)

Works and equipment for

distribution centres; supply,

trenching and laying of

cables

61.1 033 100%

C7.I.2

(REPowerEU

chapter)

Reduction of primary energy

demand of private sector

buildings

20

024ter

100%

* Reforms and investments in the REPowerEU chapter are not taken into account when

calculating the plan’s contribution to the digital target requirement set by Regulation (EU)

2021/241.