Paul Abela was not surprised when it was confirmed on TV that Government talks with a UK company on the White Rocks complex had stalled.
A director of a company originally shortlisted to build a tourist complex in Pembroke, Mr Abela, who is also president of the Chamber for Small and Medium Enterprises – GRTU, said he was always sceptical about the UK-backed project when the Government announced it two years ago.
At a ceremony in Castille, the UK investors had given a full-blown presentation of their plans to build a sports complex and 300 apartments on one side of the project. The investment was quantified at €200 million. However, in the face of mounting concerns about the project, talks between the Government and the investors failed to reach a conclusion.
During a TV debate on Wednesday, Nationalist Party deputy leader Simon Busuttil admitted the project was not carried out because it “did not offer enough benefits for the country”. The justification flew in the face of previous declarations by government exponents that the agreement would be signed soon, according to Mr Abela.
“I am not surprised by the declaration because it was evident from the start that the UK developers did not have the financial strength to go ahead,” he said. “The project was nothing more than the development of 300 apartments that would be sold for millions of euro. The sports grounds would not have cost more than €20 million to build.”
A spokesman for Sports Parliamentary Secretary Clyde Puli referred to yesterday’s statement by Prime Minister Lawrence Gonzi that the Government was not prepared to go ahead with the agreement at all costs.
Mr Abela formed part of Costa San Andrea Ltd, a consortium made up of Maltese businessmen and Spanish hotel operator Sol Melia. It was chosen as the preferred bidder by the Government before the 2003 election.
The consortium was also in possession of a sanction letter from Bank of Valletta to cover the investment of about €40 million.
A public call for tenders had been issued in 1999 for the development of a tourist complex at White Rocks. The brief excluded real estate development.
Costa San Andrea had wanted to change its plans to include an element of timeshare and real estate, but the Fenech Adami Administration had opposed changing the parameters after the preferred bidder was chosen.
The Government had, at the time, suggested re-issuing the tender, giving Costa San Andrea the right of first refusal.
According to Mr Abela, when Dr Gonzi became Prime Minister he was adamantly opposed to any real estate development.
The agreement with Costa San Andrea was not signed and nothing happened until two years ago, when the Government announced fresh plans and talks with the UK company.
No public call for tenders was issued and the sports complex plans included a substantial amount of real estate.
ksansone@timesofmalta.com