The government and the private Marsa Racetrack Consortium have initiated a memorandum of understanding which should lead to the development of the Marsa Horse Racing facilities.

Lawyer Pio Valletta, one of the consortium's shareholders, told a news conference that the private company plans to spend €18 million over a number of years to rebuild the race track, build a new grandstand and develop the area into a family park.

Asked how much would the consortium be paying the government for the development of this public land for 65 years, Dr Valletta said this was still to be negotiated.

“What we signed today is just a concept of the way we see things. It’s just an MOU. Now we have six months to develop the idea and possibly sign a contract.”

Asked when the actual works on the project were expected to start, Dr Valletta said there were no timeframes yet.

He ruled out concessions related to real estate in the area or the operation of a casino.

Speaking after the signing ceremony, Prime Minister Joseph Muscat said that this agreement was the largest-ever investment in this part of the island.

The MOU, he said, was in line with the government's plan to boost investment in the south of Malta as had been done with the placing of the American University in the Żonqor area in Marsacala.

Dr Muscat did not take questions from journalists at the end of the event.