Midi plc said today that it is not holding talks with the government or anyone else about its plans for Manoel Island other than the usual consultations with agencies on purely operational matters. It also stressed that it remains on course to develop Manoel Island in terms of the permits it holds.
The statement was issued in the wake of various comments in the press over the last few weeks. These, the company said, were fuelled by two unrelated developments.
The first was the view expressed in an interview (to The Sunday Times) by Midi's Chairman, Albert Mizzi, who, in reply to a campaign from various quarters that Manoel Island should be spared from development, reminded readers that it was the government who had originally decided to develop both Tigné Point and Manoel Island and which had issued and awarded a tender in this regard.
Mr Mizzi had said that if the government now preferred to leave Manoel Island free of construction, then it would, of course, need to compensate the successful bidder of that tender, the company said. (see the interview at http://www.timesofmalta.com/articles/view/20120325/interview/-You-don-t-need-cash-to-make-good-deals-.412550)
"The statement speaks for itself and is both logical and fair," Midi said, but, it added, Mr Mizzi's words were being misconstrued.
It recalled that in 1992 the government issued a public tender for both Tigné Point and Manoel Island. Midi won this tender and, after protracted negotiations with three successive governments, it was granted these areas on emphyteusis against a consideration of almost €100 million in premiums, infrastructural and restoration obligations.
This agreement, along with the Outline Development Permit approved by MEPA, stipulated the permissible building volumes for both Tigné Point and Manoel Island and formed the basis of a contract, which was unanimously ratified by Parliament in 1999 and signed by both parties in June 2000. The Outline Development Permit actually specified both the volumes and uses of the different phases of the project and, contrary to frequent speculation in the press, the building volumes stipulated in this permit have never been exceeded, Midi said.
"If pressure is now being brought to bear on the government to reconsider the plan for Manoel Island, then the government would need to reach an agreement with Midi and adequately compensate the company for those portions of the approved outline permits that it would be giving up," Midi insisted.
If pressure is now being brought to bear on the government to reconsider the plan for Manoel Island, then the government would need to reach an agreement with Midi and adequately compensate the company for those portions of the approved outline permits that it would be giving up
"The essence of Mr Mizzi’s comment was simply to point out that contracts come with both rights and obligations and Midi can hardly be expected to give up its 'right' to develop the approved area on Manoel Island without being reimbursed for its onerous obligations and without being granted fair and adequate compensation for what it would forego.
"It would be inconceivable to propose otherwise, both for the original investors as well as the over 700 public shareholders who invested in 2010 pursuant to a prospectus outlining the right to develop Manoel Island."
The company stressed that it remains on course to develop Manoel Island according to the outline permits it holds. It recently engaged a renowned international architectural practice to review the master plan for the village and the public zones within the project.
"If there is to be a public debate on the subject then it should be conducted in good faith, with all interests declared, and not based on unfounded and potentially libellous speculation and suppositions about Midi's intentions and position."
As for anonymous media comments about apartment sales and the leasing of commercial spaces, the company said that over 95% of the 280 properties so far built on Tigné Point have all been sold and delivered to their new owners. Furthermore all of the shops at The Point shopping mall have been successfully rented out.
With regard to reports on the recent resignation of Ben Muscat from the post of Midi CEO, Midi said that as Mr Muscat himself stated in a recent interview, he resigned after giving 12 years of uninterrupted service to the company. He resigned on good terms and for personal reasons and any speculation in this respect did not do justice to him.