The private sector is expected to invest €1.6 billion in the regeneration of Paceville, according to the recently-unveiled masterplan, Planning Authority chief executive Johann Buttigieg told the House committee on the environment and development planning this evening.

Another €300,000 would be spent on the necessary infrastructure by the government.

Mr Buttigieg was answering questions by the Opposition after Architect Joseph Scalpello gave an overview of the plan, including the nine areas that had been identified as main development opportunity sites. 

Mr Buttigieg said the plan was subject to a number of studies and assured the committee that the proposed land reclamation was earmarked for tourism purposes only, namely hotels. Residents - expected to increase from 2,000 to 9,300 would also benefit from a better quality of life.

Former Development Minister George Pullicino hoped the two consultants who drew up the plan were not advisers to the prospective developers.