Issue link: https://maltatoday.uberflip.com/i/1471449
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 G overnment's renegotiation of land lease agreements with Sadeen Investments, over its American University of Malta, and Smart City is a welcome development. ese two projects have been cause for controversy over the years, fail- ing to live up to contractual obliga- tions and falling short of the prom- ised employment opportunities. Smart City was conceived in 2007 when Tecom Investments, which had bought government's shares in Maltacom, was roped in to develop a knowledge city at Ricasoli instead of an industrial estate. e project had to create thou- sands of high-end jobs by attract- ing knowledge-based investors to a village that comprised residential units, hotels, office blocks and com- mercial outlets. However, beset by the main inves- tor's financial woes during the 2008 global financial crisis, Smart City did not live up to its contractual ob- ligations with the government also failing to meet its own end of the bargain. e project today is a shad- ow of what was promised. e AUM project was conceived in 2015 with the agreement finalised in 2016. However, it was beset from the start with controversy. Doubts had been raised about the adequacy of the Jordanian investor with no back- ground in education and criticism was levelled over the Żonqor site in Marsaskala, which would have taken up a large portion of ODZ land. AUM struggled to attract foreign students and the numbers today are anything but what had been prom- ised. Robert Abela's government is now trying to put both these projects back on track in what, at face value, appears to be a win-win situation for all sides. Government will get back the Żonqor site, which will allow for the expansion of the Inwadar National Park, putting paid to the ODZ con- troversy. e government will also take back a site in Bormla from the AUM, committing itself to develop it into a public open space. e transfer of the planned AUM campus from Żonqor to Smart City will hopefully give the investment a new spark to fulfil the original obli- gations. In turn, the construction of a uni- versity campus at Smart City, along with the planned building of the In- stitute for Tourism Studies school will provide a new lease of life for Smart City. A new condition included in the renegotiated Smart City contract obliges the company to invest in a primary and secondary school. is, along with the two tertiary educa- tion campuses, will create an edu- cational ecosystem that could serve to attract foreign companies to the area. e package tries to revive the AUM and Smart City investments, which is a good thing. Obviously, in arrangements like these the devil is in the detail of the actual contracts that will be signed. Unfortunately, past experience – and these two projects are an exam- ple of this – has shown that noble ideals and lofty pledges do not al- ways translate into reality. is is why, MPs sitting on parlia- ment's National Audit Committee that will be scrutinising the deals must not only analyse the individ- ual clauses in the agreements but be satisfied that the land valuations used to justify the swaps involved are solid. e public must not be short- changed, while investors must be given the opportunity to grow their projects. Investments like these are more than welcome at a time of eco- nomic recovery, which is why the Abela government's decision to take the bull by the horns and try and find a solution is commendable. A win-win situation for all 23.6.2022