Construction waste dispute threatens to further increase property prices

The government kept a growing dispute over construction waste disposal out of public view during the recent electoral campaign, despite being aware that tensions between developers and quarry operators (some also developers) that threaten to add further to the increase in property prices in Malta, sources familiar with the discussions have told The Shift.

Quarry owners are restricting access to disposal sites while pressing for a steep increase in dumping tariffs, a move that industry sources warn could raise construction costs, delay projects and add further pressure to already soaring property prices.

At the centre of the dispute is the cost of disposing of construction and demolition waste. Quarry operators are seeking to increase charges from the long-standing benchmark of €12 per tonne to between €20 and €22 per tonne – a rise of between 67% and 83%.

Sources told The Shift that several quarries which used to receive excavation and demolition waste have informally coordinated restrictions on incoming material. While sites owned by major contractors continue accepting waste generated by their own projects, they are either refusing or severely limiting waste from third-party developments.

The restrictions are creating mounting pressure across the sector, which relies on a small number of quarry operators (around six) for waste disposal. Contractors are increasingly struggling to find alternative sites willing to accept material, forcing some projects to slow down and others to be postponed altogether.

The Malta Developers Association (MDA) confirmed that discussions between the industry and the government have been ongoing for weeks but warned that the situation could worsen if no agreement is reached.

Speaking to The Shift, an MDA spokesperson said negotiations had yet to produce a breakthrough and argued that the dispute reflects years of government failure to develop a long-term strategy for construction waste management.

“We are trying to hold discussions with the government to move forward, but no conclusion has yet been reached,” the spokesperson said. “Successive administrations have relied on temporary solutions rather than addressing the structural challenges facing the sector.”

According to sources involved in the negotiations, ministers and senior officials were aware of the emerging dispute during the electoral campaign but chose not to address it publicly while talks continued behind closed doors.

The concern, sources said, was that disclosure of a looming waste-disposal crisis, and the prospect of sharply higher dumping costs, could create uncertainty in a sector that remains a key driver of economic activity.

The financial implications for developers are substantial. A project generating 10,000 tonnes of excavation waste currently faces disposal costs of around €120,000. At €20 per tonne, that bill would rise to €200,000. For larger developments involving tens of thousands of tonnes of material, the additional costs could run into hundreds of thousands of euro.

Developers said they were already contending with rising labour costs, more expensive building materials and higher financing expenses. Industry insiders warned that further increases in disposal charges were unlikely to be absorbed by developers alone and would ultimately be passed on to buyers through higher property prices.

The standoff echoes a similar crisis in 2019 and 2020, when disputes over disposal capacity and pricing threatened to disrupt construction activity. The government eventually intervened, securing agreements that established the current benchmark tariff of €12 per tonne and averting a wider industry shutdown.