Issue link: https://maltatoday.uberflip.com/i/1535229
maltatoday | SUNDAY • 11 MAY 2025 5 INTERVIEW The following are excerpts from the interview. The full interview can be found on maltatoday. com.mt as well as our Facebook and Spotify pages. PHOTOS: JAMES BIANCHI / MALTA TODAY At what stage is the Manoel Island project? The planning process is probably now in its eighth year. We initially started with a master plan developed by Foster & Partners. It went before the planning board and was approved. During the application process, we also undertook an environmental impact assessment, which highlighted potential risks [to heritage] on the site. So, together with the Superintendence for Cultural Heritage (SCH) we agreed to archaeological investigations that did yield sites of interest. With the SCH we uncovered these sites but the archaeological digs took a good four to five years to complete. […] Sometime in 2021, we had to go back to the drawing board and redesign the masterplan to take into account the archaeological finds. That resulted in a major reduction in the development and we then went back to the planning board with a fresh outline development application, which was eventually approved. Unfortunately, it was appealed and the appeals process took around 18 months to resolve. Eventually, the Court of Appeal ruled that the basis of the appeal was unfounded. This cost us time that we are still looking to recover. When this concession was granted 25 years ago, Malta was at a particular stage of its socio-economic develop- ment; governments at the time were seeing projects like this as providing a boost to the economy... Given that the Manoel Island part of the project has not started, shouldn't govern- ment repossess the island and turn it into a public park for the massive conurbation comprising Sliema, Gzira, Msida, which houses some 150,000 residents and hosts thou- sands more who visit for work and leisure? There are two sides to the story. The concession was granted 25 years ago but it was always contemplated that it would be a phased development. The deed of emphytheusis we have with government contemplates that MIDI had the option at the time to decide where to start—either Tigné Point or Manoel Island. The decision taken 25 years ago was to commence works at Tigné Point; as those works were coming to an end, around 10 years ago, the process of developing the masterplan for Manoel Island commenced. The process was envisaged to take between three and four years maximum. But 10 years later we are still at a stage where we do not have a full development permit. The full permit request was submitted in March 2024 and a decision was taken at the public hearing that it was advisable for a heritage impact assessment to be undertaken. The decision was based on the fact that Manoel Island had only just been included in a proposed [UNESCO] buffer zone for Valletta… [We carried out] a heritage impact assessment, received feedback and new studies that were requested were carried out. These have now been submitted. We are confident that in this calendar year we should be in a position to go back to the planning board to determine whether our application for a full development permit is approved or not. Activists have suggested that MIDI does not have the financial fire power to bring this development to a conclusion within a reasonable time- frame. You have been searching for an investor for some years now. What we wanted to do in terms of identifying an investor to join MIDI on the development of Manoel Island was to find someone who could provide equity. MIDI could access the finance independently but we wanted to ensure the project was properly capitalised; we believe the way forward is by bringing in an investor… we are working actively to conclude the process. Activists are saying the concession agreement stipulates that in March 2026, the project should be substan- tially concluded. As things stand this is unlikely to materialise even if the permit is issued within the next cou- ple of months. So, what is MIDI exact- ly discussing with the government? …in actual fact [the deadline] was March 2023. The deadline was breached two years ago. The deed provides a period of three years within which MIDI can rectify its failings, or perceived failings, without breaching its contract. In reality, what the activists are failing to explain, or failing to understand, or choosing not to understand, is that the deed includes provisions for automatic extension of that deadline. The provisions are very clear: Firstly, any delays associated with the issue of building permits; secondly, delays associated with archaeological finds; and thirdly, any delays beyond MIDI's control. We have very well documented instances of these delays and the completion date is automatically extended without the need to negotiate. The emphytheusis MIDI enjoys is for 99 years, which commenced in 2000... So, are there any current negotia- tions with the government? The reality is that the negotiations with government relate to the archaeological finds because the deed provisions make reference to adjustments—the deed has to be adjusted to take into account the [impact] of the archaeological finds. What completion term are you look- ing at? The process in terms of planning for Manoel Island commenced 10 years ago. The clock is still on hold because the heritage impact assessment is still being considered. We were sitting in front of the planning board more than 12 months ago and were sent back to undertake another study… given the delays we have sustained, there is plenty of time to undertake the project within the revised completion date. In 2012, then MIDI chairperson, Albert Mizzi, in an interview said it was not a problem for Manoel Island to be handed back to the government as long as it compensated MIDI for all restoration work done at Fort Ma- noel. Is that position still something MIDI would consider today? Ten years ago, the circumstances were very different; we had not embarked on the production of the masterplan and we had not incurred the investment expenses done so far… at that stage it may have been opportune to have that discussion but today we are far too committed with our shareholders and bond holders; it's really a discussion we cannot have. So, there will be no discussion on compensation. I'm not going to be drawn into it. Reimbursing for expenses incurred is one thing but I don't think compensation is something anyone would consider. I know that Graffitti is saying MIDI should be fairly compensated and the shareholders should not suffer; it's very idealistic but in reality, very difficult [to achieve] and in our opinion, not possible to implement… Does MIDI see any value in the ar- gument on the need for public open space in this congested conurbation? Absolutely. Most definitely… when we encountered the archaeological finds, we had to redesign the masterplan entirely. The result is a development with a much lower impact. […] Sixty per cent of the development, of the site occupied by MIDI, will be transformed into public open spaces, fully accessible to the public. […] Manoel Island, in its current state, is actively being used for recreational purposes and last year we recorded 240,000 visitors to the island… Manoel Island does fulfil that obligation and our development will fulfil it even further. Why do you say so? Sixty per cent of the island—the concession granted to MIDI—is publicly accessible and for public use. Twenty per cent is occupied by historical buildings, leaving MIDI to develop for commercial purposes 20% of the site. Out of that 20%, another 12% are private open spaces… The obligation to develop public areas is also included in the deed and there are safeguards to ensure those public areas remain publicly accessible… If the PA does approve the project this year, when would the project realistically kick off? Immediately after… excavation works have already commenced because we do have a full development permit for the excavation of the site. Development works would commence immediately after… we have the benefit of the clock stopping when we encounter delays but when the permit is issued, the clock starts ticking again and we are very much