23 - 29 December 1999

Millions expected from US Navy agreement

by Franco Aloisio

The United States Navy and the Malta Drydocks yesterday signed a "historic" agreement which enables the Maltese shipyard to bid for repair tenders on auxiliary vessels of the American 6th fleet.

The value or the contracts for such repairs could amount to millions of liri, the US Ambassador Kathryn Profitt said yesterday during the signing ceremony.

Ms Profitt said that the facilities at the 'yard have been evaluated by a US Navy Certification Team, and have been rated as "world class" facilities and as the best in the world.

The agreement was signed by drydocks chairman Noel Zarb Adami and 6th Fleet Captain Nad Herbert, in the presence of Minister for Economic Services Josef Bonnici and the American Ambassador Kathryn Profitt.

Prof. Bonnici said the agreement will increase the volume of work at the drydocks. He stated that the drydocks will be carrying out repair work only on auxiliary ships.

Asked to define an auxiliary ship, drydocks chairman Noel Zarb Adami said that such a ship would be one which is armed with non-propulsive weapons.

Prof. Zarb Adami said that the profitability of the drydocks depends on such enabling agreements. He said that the clarifications over this agreement with the GWU were discussed last Tuesday. He added that now that Malta can repair American auxiliary vessels, the drydocks can still carry out work on ships owned by countries which are sanctioned by the US.

"We simply cannot afford to lose such work, when our competitors in the Mediterranean are already bidding for such contracts whilst having work from their own navies," he said.

Regarding the claim made by the Labour Party that the agreement goes contrary to the Constitution, Prof. Bonnici said that the government's decision was based on the advice of the Attorney General.