A feasibility study of a land-based link between the Islands of Malta and Gozo

Abstract

Rumours that a bridge between Malta and Gozo will be constructed have been around for quite some time. To the island region of Gozo, the issue of accessibility is of paramount importance, since it is essential for its existence and economic development. All the present services, connecting the Maltese archipelago, are very much dependent on weather conditions. Although, in recent years, there has been an overall improvement in these services, the problems still remain. Initially this study identifies the present problems.

The general public has a positive attitude towards this project since it would mean a reliable mode to cross between the islands. Obviously, as with any other issue affecting a lot of individuals, this proposal generated a lot of controversy. This dissertation aims at determining the financial feasibility of building the bridge. The building of such structure necessarily impact on several highly sensitive areas, not least the environment. Therefore a basic analysis of the social and environmental impacts was conducted. The financial feasibility of this project includes, the calculation of the capital outlay, recurrent income and expenditure, profit and loss, the tax computation and cash flow projections. Finally, discounted cash flow techniques and sensitivity analysis provide the basis for the financial evaluation of the project.