Issue link: https://maltatoday.uberflip.com/i/1544021
7 maltatoday | SUNDAY • 22 MARCH 2026 OPINION A 99-year concession granted in 2000 had placed two stretches of Malta's most precious public lands, Tigne Point and Manoel Island, into private hands. The private consortium had plans for large-scale develop- ment. With regards to Tigne Point the development hap- pened but with regards to Ma- noel Island it did not. Prime Minister Robert Abela has announced that this chap- ter is closing, and a new one is opening that will see Manoel Is- land and Fort Tigne returned to public ownership. This historic achievement was not inevita- ble. We could have decided to do nothing, or allowed the un- certainty to drag on for years, or debated endlessly, or entered lengthy court battles with no guarantee of success, leaving the public locked out while lawyers argued. But we did nothing of the sort. Instead, we gave our word that Manoel Island and Fort Tigne would be returned to the people, and we kept it. We turned com- mitment into action. This is fa- miliar Labour turf: People come first. We knew from the word go that the negotiations would be tough and delicate. But we were adamant in securing the best deal for Malta. From the word go we were clear that we were not prepared to pay any cent for the actual value of the property and any payment had to be fair and verified relative to expenses made by MIDI so that each par- ty ends up in the legal position it was prior to entering into the concession. MIDI asked for a €78 million reimbursement for expenses made. We verified all the claims through an independent auditor. We did not simply negotiate; we delivered a fair and responsible outcome at €43 million—just over half the €78 million initially demanded. Our work is not done yet. Now, we move to the next step. The agreement shall proceed through the necessary parliamentary steps. Preparations are already underway for Heritage Malta to take possession and begin the next phase of stewardship upon the final signing of the deed. Maltese families have long called for a national space, a green lung, a place they can en- joy and call their own. Manoel Island and Fort Tigne will do just that. Now, their legacies shall be safeguarded for generations to come. This is what a competent government is all about. Had the naysayers had their way, this landmark achievement would not have happened. We negotiated hard and tirelessly whilst dealing with a disruptive Opposition and an unprecedent- ed geopolitical situation that requires focused attention. We succeeded by turning negotia- tions into positive results. But there is more to the his- toric announcement than just the return of Manoel Island and Fort Tigne to the people. This is deeper and more meaningful than a land deal. This is about Malta's identity. Manoel Island sits at the heart of Marsamxett Harbour, a place of huge historical importance for successive Maltese genera- tions. It is a place etched in the collective memory of our people. We shall now transform it into a community place and a place of belonging. As minister responsible for public lands and ultimately re- sponsible for the negotiations, I would like to sincerely thank Prime Minister Robert Abela and the Cabinet for their sup- port, and above all the people at the Lands Authority for the pro- fessional and serious work they carried out. This is not the end of a process but the beginning of a new vision. Only a few weeks ago, we launched Malta Vision 2050. Our country has an impressively strong GDP, but Vision 2050 will embrace even broader concepts that target a better quality of life. The return of Manoel Island and Fort Tigne to the people goes to the core of Malta Vision 2050. We gave our word—Manoel Is- land and Fort Tigne are coming home. Owen Bonnici Minister for culture, lands and local government Manoel Island and Fort Tigne are coming home Jeremy Cassar Torregiani National Bank of Malta heir €43 Million for failure: The Manoel Island bailout THE Malta government's €43 million net payment, from €47.3 million gross, after VAT, to MIDI plc for partially re- scinding its 2000 emphyteutical concession over Manoel Island and Fort Tigné exemplifies on- going challenges in good gov- ernance, accountability, and the protection of taxpayers and investors in our bond market. Under the original deed—rat- ified by Parliament—MIDI was required to complete at least 85% of the project by 31 March 2026, which was already ex- tended from 2023. Breach no- tices in 2025 invoked termina- tion rights with minimal or no compensation. Instead of en- forcing these terms to reclaim the land cost-free for public benefit (such as a national park or heritage site), the govern- ment negotiated a settlement reimbursing verified costs like heritage restorations while MI- DI retains the profitable Tigné Point. People with their country's in- terests at heart will argue that this rewards prolonged delays and non-performance on pub- lic land, prioritising private developer interests over tax- payer rights. The payout timing aligns closely with MIDI's €50 million 4% secured bonds ma- turing in July 2026, raising con- cerns of a de facto bailout using public funds to ease the de- veloper's repayment pressures amid financial strains such as asset sales, prior refinancing and others. This unfolds against rising interest rates—Malta's 10-year government yield at 3.8%– 3.85% in March 2026, with up- ward potential—which elevate refinancing costs in Malta's, €3 billion to €3.4 billion corporate bond market. Clustered matur- ities in 2026–2028 strain less robust issuers, especially in re- al estate/hospitality, and retail who are facing disputes, liquid- ity problems, or going-concern uncertainties. A MIDI default risks eroding retail investor confidence, potentially spark- ing contagion, and amplifying refinancing difficulties under tighter conditions. Moreover, the deal highlights bipartisan shortcomings. The Nationalist administration granted the concession in 2000, while the current Labour gov- ernment chose compensation over strict enforcement. This pattern fosters perceptions of cronyism, where connected developers receive preferential treatment from both political parties at the public expense, potentially inflating national debt without clear taxpayer or investor benefit. This bipartisan pattern erodes trust, prioritises private gains over public rights, and demon- strates that lofty rhetoric about protecting national assets rare- ly translates into action against well-connected developers. Moreover, the deafening si- lence from so many that should be shouting at the roof tops only goes to show how much we must so constantly lie to shield ourselves from the con- sequences of saying the truth. Reclaiming Manoel Island at no net cost to the public after MIDI's admitted non-comple- tion would have been the just and legally robust outcome. The negotiated payout essen- tially seems to reward under- performance and signals that contractual obligations are optional while ushering in a precedent that will only signifi- cantly add more to our national debt with irresponsible spend- ing and zero accountability re- maining the hallmarks of the republic post independence. Photo: James Bianchi/MaltaToday