The government has started the process of acquiring properties adjoining the Mediterranean Conference Centre and which may be used to convert the complex into an Opera House as proposed by Sir Cameron Mackintosh, the prime minister has said.

Dr Gonzi said that no decisions on the project had been taken yet, but the government had had talks with a number of people on the basis of Sir Cameron’s recommendations.

World-renowned producer Cameron Mackintosh in his recommendations had said the Mediterranean Conference Centre could be turned into a "major" theatre and "grand opera house" within a two-year period.

The man known as the 'king of theatre', who owns seven historic theatres in London and a home in Valletta, had been commissioned by the Culture Ministry to suggest a financially viable solution for the MCC, which is one of the largest auditoriums in Malta but ill-equipped.

His plan was to turn the MCC into a 1,700 to 1,800 seat auditorium with a spacious 50-foot modern stage and fly tower. He said the grand historic rooms of this complex were perfectly situated for the theatre public areas.

In addition, he said, in the main auditorium there is space to build a proper black box studio theatre ideal for encouraging new writing. Rehearsal spaces could be created while retaining most of the conference facilities.

"If money can be found for this important project, I believe it will be a tremendous cultural asset for Malta and a much needed platform for many of the island's talented artists," he had told The Sunday Times.

Sir Cameron said the comparative bargain cost would be only 20 per cent of that incurred on a comparable new theatre elsewhere in Europe.

"My team and I believe we could create a truly grand opera house overlooking Valletta's Grand Harbour within two years," he said.

He said a big theatre on the MCC site would also revitalise the most run down area of Valletta, especially once Fort St Elmo was restored.