SmartCity Malta said today that its shareholders had authorised a €35m increase in direct investment, raising the capital base to €66 million.
This capital consists of a direct investment by SmartCity in Dubai, and does not involve any borrowing or other external financing.
The company said work at the SmartCity Malta site is moving at a faster pace than originally projected and spending on the project's construction this year is expected to be more than double that of 2011.
The SmartCity Malta Board of Directors this week also approved the budget for 2012, which included the proposed expenditure of €25 million for the completion of the project.
SmartCity Malta CEO Fareed Abdulrahman stated that part of this investment will be used for the development of phase 2, which includes completion of two office buildings SCM02 & SCM03, two retail complexes SCM04 & SCM05, the lagoon and the grand steps, as well as for marketing initiatives both locally and overseas.
With the completion of SCM02 and SCM03, the office space will be increased by more than 18,000 square metres. The company is planning to complete the excavation and finalisation of the lagoon as well as other landscaping projects.
In addition, it was decided that foundation works at the SmartCity Malta site will commence earlier to enable completion of further outlets, the first apartments and a hotel.
IT Minister Austin Gatt said that it was obvious that through this project, Malta had found the way to face up to the economic changes in the region and to restore its positive performance on a global level.
"Through its partnership with the SmartCity Malta developers, the Government has ensured that a huge investment is made in the best working environment in our region without placing the financial burden on the public".
"This means that Malta will be more competitive than other countries which today cannot give priority to their infrastructural investment. Malta is building a new town in the south which will become an important destination for investment and it is indeed a pity that many do not realise the constant work and worth of SmartCity Malta."
These decisions reconfirm the developers' commitment towards the success of their strong investment and to ensure that this project generates thousands of jobs while contributing towards the economic wealth of Malta, SmartCity said.