The government's decision to take over the embellishment of Cospicua's Dock No. 1 was criticised by Nationalist MP and former Urban Development and Roads Minister Jesmond Mugliett who used to be in charge of the project until last year.
It was initially a private-public partnership but Infrastructure Minister Austin Gatt announced on Tuesday that the €10-12 million project would now be taken over by the government. He said works would begin in January after proposals were made in October.
Mr Mugliett said the government was giving the wrong signals regarding continuity and was losing precious time in exploiting EU funding. By reversing "yet another public-private partnership project" the government was giving prospective bidders for similar projects the wrong impression, he said.
Dr Gatt, on the other hand, insisted that "any minister would have come to the same conclusion" since the investors failed to renew the bank guarantee and also "failed to provide proof that they had the financial clout to carry the project to the end".
Mr Mugliett insisted the government would "never" manage to come up with the necessary funds to do the conservation, infrastructure, refurbishment and landscaping works necessary. One of the most important aspects of such a project was having a private operator that could develop, brand, sell, run and market the project.
"I cannot understand how the government, when it takes on this project, can do all this."
Mr Mugliett said he was now "used to" the fact that all the projects he spearheaded when he was minister would be "stopped or reversed". These included several road projects, the Upper Barrakka lift and the Ta' Qali crafts village. "This does not mean I understand or feel happy with all the justifications made."
He criticised the reasons Dr Gatt gave for the change of plans with regard to Dock No. 1.
Dr Gatt said the consortium handling the project, Gruppo Romegas, had not provided the necessary bank guarantees and it did not supply the right designs. He said he would not want the area to be used for speculation.
When pressed for more details, Dr Gatt said there was "more emphasis on the development of real estate than on the regeneration aspect".
He said the proposed development was considered excessive, even though Cabinet had approved the proposals submitted years ago.
He added that the government was mulling a number of proposals including the possibility of having an arts and crafts centre as proposed recently.
Mr Mugliett insisted there was great willingness from Gruppo Romegas to come up with new bank guarantees and to keep improving designs. "I do not think the design issues were insurmountable... The proposal for Dock No. 1 was a good one with some very interesting architecture," he said.
Mr Mugliett lashed out at the minister's negative implication that the area could be used for "speculation".
"I resent the word speculation as applied to our brief. Conservation requires substantial funds and there has to be revenue that would be ploughed into conservation."
Mr Mugliett lamented the fact that even uncontroversial programmes developed under his tenure, such as the 450 residential roads programme, had been stopped.
"There could be justifiable reasons, such as the need to renew the agreement with the contractors or because the promise of funds from the local budget had become unclear. However, all the capital projects initiated by myself had passed through a rigorous filtering process, through the Cabinet Committee for National Projects and, subsequently, Cabinet."
He said that in some cases "strange" reasons were given for the termination of projects.
Timeline: Dock No. 1 saga
1996 - Finance Minister John Dalli promises to develop Dock No. 1 into a hotel and a yacht marina.
2000 - New plans include 30 flats and banks.
October 2003 - The Nationalist government promises to take Dock No. 1 from the Malta Shipyards Ltd and embellish it. Proposals expected in February.
2004 - The government buys Dock No. 1 from Malta Shipyards Ltd.
April 2004 - Opposition Leader Alfred Sant says the project never took off.
October 2004 - Prime Minister Lawrence Gonzi says Cabinet approved the development brief and Mepa was soon to formally approve it.
December 2004 - Public consultation launched on development brief. Plans include three residential blocks of flats and an underground car park and are meant to be finished by 2006.
March 2005 - Cabinet approves Dock No. 1 brief and the government launches it. Call for proposals will be launched in coming weeks. Investment expected to be of Lm12 million and work to start in 2007.
August 2005 - Expressions of interest are submitted from around the world.
June 2006 - Minister Jesmond Mugliett says agreement to be concluded by September.
January 2007 - The government accepts, in principle, Gruppo Romegas' proposal of building 200 flats over three zones in the area. Project to be proposed to Parliament before summer recess.
September 2007 - Local councils and NGOs complain about lack of consultation and inaction.
November 2007 - The government drafts contract with Gruppo Romegas with investment expected to be Lm22 million.
December 2007 - Mr Mugliett says the plans were delayed because Mepa requested an environment planning statement. Dr Sant holds a press conference at Dock No. 1 promising the regeneration of the whole Grand Harbour area and lamenting broken promises.
May 2008 - The new minister responsible for the project, Austin Gatt says a Spanish consortium is interested in the upgrading and development of Dock 1.
January 2009 - Dr Gatt says this is the end of the road for the Ta' Qali Crafts Village because there are no EU funds available. Proposes reform of Dock 1 into arts and crafts centre. Labour MP Gavin Gulia says Nationalist government came up with nine promises on Dock 1, all of which were unfulfilled. Mr Mugliett criticises change of heart.
July 2009 - Dr Gatt announced talks were discontinued with Gruppo Romegas and that the government would be taking the project in hand with an investment of €10-12 million expected to come from EU funds. The plans will not allow "speculation". Proposals to be launched in October, works to start in January 2010.
cperegin@timesofmalta.com