Shop owners in part of Freedom Square, Valletta, will be offered compensation - either financial or in the form of alternative premises - so that by December they can vacate the properties that will be affected by the City Gate project.

The kiosks in City Gate affected by the project would also be receiving a letter in the coming days, informing them that they would have to move out by December.

It was just a matter of identifying exactly which kiosks would be involved but talks would also be held to see how best to compensate them, the Parliamentary Secretary for Revenues and Land, Jason Azzopardi said.

The Land Commissioner last week sent a letter to the shops on one side of Freedom Square and those on the opera house site that would not feature in Valletta's new-look entrance designed by architect Renzo Piano.

The letter, sent on Tuesday, "politely" informed them that they would have to leave the premises by the end of the year because works were scheduled to start in January. They were promised that individual meetings would be held as from today week to discuss forms of compensation.

The 13 affected shops in Freedom Square each had a lease that was renewable every six months, Dr Azzopardi explained.

Of the eight shops under the opera house site, one had no legal title whatsoever and had been tolerated over the years while the others had been served with a "stop rent" notice about four years ago due to the project. However, Dr Azzopardi explained, the Land Department had been accepting money from them as compensation for use.

Legally, they did not have a title of lease but they would still be invited to discuss compensation, he added. Dr Azzopardi said the lease of one outlet was due to expire in 2014 but it was being terminated on the grounds of "public purpose".

He did not think every shop would opt for alternative accommodation, saying there was not enough space to cater for each one in the area of Freedom Square that would not be affected by the project.

"The approach taken in the letters is to discuss and not to impose," Dr Azzopardi said.

He was reacting to the anger of some shop owners who claimed they had been ignored. "No consultation whatsoever has taken place and we are absolutely in the dark as to what will happen to our shops," an irritated entreprenuer had said.

Reginald Fava, owner of Chemimart pharmacy, had questioned whether the government would offer the shop owners alternative premises, compensation, or simply throw them out.