With the construction of the parliament building and open theatre at City Gate missing its December deadline, the Government is paying a daily fine of almost €10,000... to itself.

The news emerged during the annual results presentation of Malita Investments, which is 80 per cent owned by the Government.

Minority shareholders, who had bought some €15 million in shares, will be receiving a net dividend of 1c6 per share in April after Malita registered a profit of €1.4 million in its first full year of operation.

The company was created in 2011 to finance public projects. The Government gave the company legal title over the parliament building and open theatre and will be leasing back the properties for its own use. Lease payments owed to the Government by Malta International Airport and the Valletta Cruise Port terminal were also diverted to Malita.

Kenneth Farrugia, Malita chairman, said the company had to start receiving rents from the Government for the parliament and open air theatre in January.

However, given the missed deadline, Malita was receiving the penalty in lieu of the rent.

"The Government has accepted and will be paying a penalty of €10,000 per day for the parliament building and €4,200 daily for the theatre after the December deadline was missed," he said, adding the project was expected to be handed over to Malita in June.

Mr Farrugia noted that Malita had secured €40 million loan from the European Investment Bank at a fixed rate of around 3.3% for a 25-year duration. He said the favourable interest rate, which was well below commercial rates, will in the long run save the government millions of euros. The loan was taken to finance half the cost of the City Gate project.

Outlining the company's philosophy, Mr Farrugia said Malita will invest in projects of national importance such as the regeneration of Grand Harbour; tourism, with particular emphasis on heritage sites; and real estate such as urban regeneration that can have national importance.