Capital Support Awarded

Following the reprogramming of 2021–2027 cohesion policy funds under the European Commission's mid-term review, the ERDF (European Regional Development Fund) co-financing allocated to the second Malta–Sicily electricity interconnector (IC2) was increased from €165 million to €261 million. The grant boost lifts EU-funded coverage to approximately 87% of the project's estimated €300 million total investment cost, up from the prior 55% covered under the original 2024 approval. The uplift is reflected on InterConnect Malta's project page, which states the project is co-financed under Priority 2 ('Promoting clean and fair energy transition, sustainable wastewater management, and green investment'), Specific Objective 2.3 ('Developing smart energy systems, grids, and storage outside the TEN-E network') of Malta's 2021–2027 ERDF/CF/JTF Programme, and remains designated as an Operation of Strategic Importance. The remainder of the project budget is funded by the EIB loan (€100m signed of a €168m envelope) and the Republic of Malta's own resources. The increase, applied in 2026 following the mid-term review of cohesion policy funds, materially reduces Malta's outstanding financing exposure on IC2 and strengthens the project's financial position as it moves into the subsea-cable installation phase scheduled for Q3 2026.