The SmartCity Malta project is on track and progress is being made as scheduled, reassures Claudio Grech, chief executive officer of the project in Ricasoli. In an interview with i-Tech Mr Grech admits that they had to review their strategies as a result of international economic downturn, but this in itself is providing new opportunities.

How did this international crisis impact SmartCity Malta? Are there significant and clear negative effects? For example, the cost of building material is down internationally as a result of the crisis. Will this be reflected in Malta?

The international crisis has presented SCM with both challenges and opportunities. On one hand the international market is more challenging since many major companies are not planning to expand their operations and the global IT spending is experiencing a marginal reduction in 2009. Nevertheless, it also presented opportunities in the sense that a number of companies which are established in destinations with a higher cost of operation are now actively looking at relocating at least part of their operation in a location which is equally (if not more) effective but which offers a lower total cost of operation. SCM is striving to address the challenges by exploiting the opportunities emerging in the market. Admittedly, it is not easy but we believe that ultimately this strategy should contribute towards creating successful niche segments for Malta.

Observers say that the works at Ricasoli are progressing at a small pace, and doubt whether SCM 01 will be ready to host the first tenants in mid-2010 as projected last year. What's your reaction to this?

The progress on SmartCity Malta is as scheduled and planned. SCM01 will be ready for operation in 2010, providing its business partners with state-of-the-art infrastructure and facilities.

Are there any Mepa permits or permits from other Maltese authorities still pending that have to be received before the construction of the buildings speeds up in Ricasoli?

We have strong ties with Mepa and other government authorities regarding the development of SCM. Our relationship with them is ongoing for discussions on infrastructure, roads, utilities, etc that affect SCM.

SmartCity Malta is the first township development in Malta to register for Leadership in Energy and Environmental Design (LEED) Certification. Do you see this as an added administrative and financial burden or an investment in SCM?

We are proud to be the first development in Malta to implement LEED. There is no doubt that the LEED certification and the corporate policy towards adopting a sustainable development approach requires investment and commitment by the developers. However, the investment which is put forth to make SCM a sustainable and environmentally friendly township does not compare to the benefits and added value that will come out of doing so. We firmly hold that SCM has a corporate social responsibility in ensuring that it is as sustainable as possible and also that we lead by example.

SmartCity recently received the Best Investment Award in Europe for its US$300 million investment for the development of SmartCity Malta. Did Tecom and SmartCity Malta expect such an award? While it acknowledges the project, did such an award bring tangible rewards to SCM?

SmartCity is proud to have been awarded this award jointly with Malta Enterprise, which was a pleasant surprise. Needless to say, such an award adds prestige to the development and we are thankful to the European Investment Conference for selecting SmartCity for this.

At last October's GITEX, you explained how one of the goals of SmartCity Malta is to become the first ICT training destination in the European Union. Ricasoli will also be transformed into a hub for knowledge-based activities, a regional node for Far East operations, and a centre for knowledge process outsourcing. There will also be specialised clusters such as maritime-related ICT, computer gaming and IP (internet) TV and broadcasting. Do these goals and objectives of SCM still stand today, nine months later?

Definitely. In fact we are working on all of these streams. We had to revisit the value proposition in some of the segments and re-prioritise others. However, the segments remain an integral part of our marketing strategy.

Do you confirm that late last year SCM was moving ahead with its marketing campaign at such a good pace that it was in a position to confirm the first tenants at SCM within a few months but the global economic crisis in September/October/November 2008 disrupted this process? Can you give more details on the marketing efforts to attract tenants and investors? Did you have to change the sales pitch or change the target niche segments?

SCM has primarily engaged in one-to-one meetings with potential business partners to set up shop in SmartCity Malta. This was the main marketing vehicle adopted by the company which has remained unchanged throughout the last year. Nevertheless, it is a fact that we had to adjust our focus on particular niche segments to be in a position to exploit the emerging opportunities arising out of the aftermath of the crisis.

SCM is also involved in joint marketing strategies with government authorities.

The first name of a tenant mentioned at SCM was Microsoft, and the name was revealed by Minister Austin Gatt early in 2008. What is the status of the relationship with Microsoft and the possibility of the company being one of the first tenants at SCM 01?

Insofar as I recall back then Minister Gatt stated that Microsoft had expressed a serious interest to establish a competence centre in SCM. If and when Microsoft or any other major player set up at SCM, there will be the appropriate statements made by the two sides.

Will SCM offer special conditions to Maltese companies, most of them micro enterprises or SMEs, to relocate to SCM without the substantial financial overheads to keep a presence there?

Across the product offerings of SCM, we target SMEs and multi-national organisations. SCM believes that the promotion of local talent and their innovational capabilities are a crucial building block in the evolution of the local knowledge economy and hence we will be promoting it tangibly and effectively. This is not just a matter of office space cost but more so of networking with potential partners, provision of entrepreneurial and IP-related services and access to capital which all business partners will enjoy.

Is SCM committed to give first preference to Maltese citizens in employment at SCM? Is SCM still committed to create the 5,600 jobs promised at the launch of the project?

Like any other company in Malta, SCM will abide by the provisions of employment regulations. With respect to the employment commitments, the company is making a massive investment in the development of an elite self-sustained township and so it stands to reason that it will engage intensively to create the committed levels of employment.

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