Issue link: https://maltatoday.uberflip.com/i/1545479
A mega development proposed on Xemxija ridge could have po- tentially significant environmen- tal, ecological, and visual impacts, the environment watchdog has warned. This concern has led the Envi- ronment and Resources Authori- ty to conclude that a full Environ- mental Impact Assessment (EIA) and Appropriate Assessment (AA) are required. The project, which covers a 14,035sq.m site overlooking Mistra Valley, proposes 13 lev- els above ground comprising of residences, retail outlets, a su- permarket, food and drink es- tablishments, and extensive un- derground parking over three levels. The scheme would re- sult in a gross floor area of over 72,000sq.m, replacing an existing garigue landscape with a dense urban complex set to include 300 apartments. The project is being proposed by Chetgau Development Ltd, a company whose shareholders are Orta Ltd (ultimately owned by Tony Gauci and family mem- bers), Yvette Chetcuti and Francis Gauci. ERA's screening highlights the site's ecological sensitivity, noting the presence of protected orchid species and freshwater rockpools within the garigue habitat. While the proposal includes a designat- ed orchid conservation zone, the authority warns that the effec- tiveness of such a measure re- mains uncertain without further detailed assessment, particularly in relation to shading, light pollu- tion, and microclimatic changes. The authority also raises con- cerns over the project's visual and landscape impact, pointing to the scale and height of the proposed buildings in contrast to the sur- rounding semi-rural and valley environment. The transforma- tion of the site, ERA notes, would represent a substantial change in land use and visual amenity, espe- cially in views from Mistra Valley. Traffic generation is another key issue, with the development ex- pected to generate around 1,670 additional daily vehicle move- ments, potentially more than doubling flows on nearby resi- dential streets. ERA warns that this could have knock-on effects on air quality and noise levels in the surrounding area. Hydrological concerns are also flagged, given the site's position above the Miżieb aquifer and the scale of deep excavation required for underground parking, which will produce tens of thousands of cubic metres of excavated mate- rial. ERA further notes the proxim- ity of the site to the Simar Nat- ura 2000 SAC/SPA, a protected wetland area supporting sensitive habitats and bird species. It con- cludes that it cannot be ruled out at this stage that the development may adversely affect the integrity of this protected site, particularly through light and noise distur- bance. The Superintendence of Cultur- al Heritage (SCH) has also issued a strongly critical assessment of the proposal, warning that the site lies within a highly sensitive ar- chaeological and scenic context. It notes that the area forms part of the Xemxija Area of Archaeo- logical Importance and contains known features such as cart-ruts, tombs and other heritage re- mains, including a recorded cart- rut within the development foot- print itself. SCH stresses that the scale and height of the proposed buildings would introduce a dom- inant structure visible from long distances, significantly affecting key cultural landscape vistas, in- cluding those from Selmun Ridge. The authority concludes that the scheme would result in a signifi- cant adverse visual impact and is not favourable in its current form. Reporting by James Debono 10 maltatoday | SUNDAY • 21 JUNE 2026 NEWS CONTINUES FROM PAGE 1 Heatwaves, droughts and other weather shocks in Italy cross this bridge and are rapidly transmit- ted into domestic prices, pro- duction and energy dynam- ics. The research ti- tled, Short-run Spill Over Ef- fects of Cli- mate Shocks to Small-open Economies: An Empirical Inves- tigation, stresses that Malta's ex- posure stems from structural dependence. It- aly accounts for between 41% and 56% of Malta's total food imports, and up to 60% of agri- cultural and hunting products. On the energy side, Malta's elec- tricity and gas supply is almost entirely tied to Italy through the interconnector, reinforcing the scale of exposure. Heat, inflation and the price of summer shocks The findings show that positive temperature anomalies in Ita- ly—especially during summer— are a major driver of inflation in Malta. These heat shocks in- crease production costs and en- ergy demand in Italy, which then feed into Maltese import prices and services inflation. In some cas- es, Maltese services in- flation, par- ticularly in catering and accommoda- tion, is found to "overshoot" Italian inflation it- self. The report links this to Malta's reliance on im- ported food and energy inputs in tourism-facing sectors. The study finds that negative precipitation shocks—drought conditions during key harvest periods—have sharp and im- mediate effects on Malta's food sector. Italian processed food inflation can rise by as much as 0.66 per- centage points following such shocks. Maltese processed food prices closely mirror these in- creases, reflecting high import dependence. Given Italy's dominant role in Malta's food supply chain, the report notes that these shocks are not marginal but structurally embedded in domestic price for- mation. Beyond prices, the spill over ef- fects extends into real economic activity. The study identifies a peak median drop of 0.63 per- centage points in Maltese food manufacturing output following winter temperature anomalies in Italy, typically emerging about two months after the initial shock. This highlights that climate disturbances abroad do not only affect inflation, but also produc- tion cycles in Malta's manufac- turing sector. Energy: volatility abroad, buffer at home Energy transmission is also more complex. Italian climate shocks can generate swings of up to 1.44 percentage points in energy production, reflecting volatility in supply conditions. The Malta-Sicily intercon- nector also creates a "climate bridge" that allows weath- er-driven shocks in Italy to man- ifest as economic pressures in Malta production. When climate shocks cause Italian energy production to fall (particularly in colder months), Maltese domestic production often rises to offset these foreign fluctuations However, the study finds that Maltese consumers are partly shielded through government subsidies, which dampen direct price transmission. At the same time, domestic energy produc- tion tends to adjust inversely when Italian supply tightens, creating a compensatory mech- anism within the system. Services inflation and spill over amplification During summer drought con- ditions in Italy, Maltese servic- es inflation—including catering and accommodation—rises by around 0.04 percentage points, a relatively small but statistically significant effect. Because accommodation and catering have a disproportion- ately high weight in Malta's in- flation index, the rising cost of imported food and energy inputs from Italy following a climate shock is transmitted rapidly into higher service prices A structural vulnerability The overarching conclusion is that Malta's inflation and output cycles are deeply intertwined with climate conditions in It- aly. The island's economic ex- posure is not only geographical but structural, shaped by con- centrated trade links and energy dependence. For policymakers, the impli- cation is that climate risk mon- itoring cannot remain purely domestic. Instead, Malta's eco- nomic resilience increasingly depends on understanding the climate vulnerability of its exter- nal suppliers—particularly Italy. In an era of intensifying climate volatility, the study suggests, Malta's small size means that a heatwave or drought across the channel can quickly translate in- to measurable shifts in inflation, output and energy stability at home. Central Bank study shows how Italy's weather shocks hit Malta's economy Authorities flag major concerns over Xemxija development Photomontage of project dominating Xemxija promontory