Manoel Island’s development was neither being negotiated nor discussed with the government and remains on course, in accordance with the outline permits, Midi plc said yesterday.

The building volumes that were stipulated in the permit have never been exceeded

The company said that it only recently engaged a renowned international architectural practice to review the master plan for the village and public zones that fall within the project.

It insisted the development was notin discussion with any other party “other than the usual consultations with agencies, such as the Malta Environment and Planning Authority, and this on purely operational matters”.

Midi also stressed its belief in the regeneration plans for Tigné Point and Manoel Island.

It said it was committed to ensuring the projects were delivered successfully for the benefit of both its stakeholders and the public.

The company’s announcement was made in the wake of comments in the media about the development of Manoel Island and by Midi chairman Albert Mizzi in an interview with The Sunday Times, which it sought to clarify.

It referred to Mr Mizzi’s response to a campaign that Manoel Island should be spared from construction, where he noted that its development was originally the government’s decision.

In the interview, Mr Mizzi said he was willing to discuss not developing Manoel Island if the company was adequately compensated for financial loss, saying: “We will not be accused of raping Manoel Island when it was the government that issued this tender in the first place.”

He also admitted that he had “second thoughts about how the Tigné project looks from Valletta”, saying it was the government that wanted to develop the area and both political parties were fully aware of what was happening.

Midi insists Mr Mizzi’s words were being misconstrued and that his statement “speaks for itself and is both logical and fair”.

It outlined the development project’s background, saying Midi had won the public tender for both Tigné Point and Manoel Island issued by the government in 1992.

Following 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.

“The outline development permit 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,” the company pointed out.

“If pressure is now being brought to bear on the government to reconsider the plan for Manoel Island, then it 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 reiterated.

“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 added.

Midi appealed for any public debate on the subject to be “conducted in good faith, with all interests declared, and not based on unfounded and potentially libellous speculation and suppositions about its intentions and position”.

Referring to “anonymous media comments” about apartment sales and the leasing of commercial spaces, the company confirmed that more than 95 per cent of the 280 properties built on Tigné Point had been sold and delivered to their new owners, while all shops at The Point had been rented out.

The company also insisted that Ben Muscat’s recent resignation from the post of Midi CEO was “on good terms and for personal reasons and any speculation in this respect does not do him justice”.

As Mr Muscat himself said recently, he resigned after giving 12 years of uninterrupted service to the company, Midi noted.

The board of directors is scheduled to meet on April 30 to approve the financial statements of the Midi Group for the year ended December 31, 2011.