The government intends to start work on the rehabilitation of the Dock 1 area in Cospicua early next year, Infrastructure Minister Austin Gatt said today.

He said the government's plans for the project would be announced in October, but they would be based on the rehabilitation and embellishment of the dock and the centuries old buildings in the surrounding area as well as the building of a car park.

Dr Gatt said the project is expected to cost between €10m and €12 million. The investment will be made by the government, which will seek EU funds, Dr Gatt said. He said the government had discontinued talks with the Romegas Consortium on the project because the consortium had not produced the required bank guarantees and no agreement was reached on the designs. The government, Dr Gatt insisted, did not want to see this project used for speculation.

Gruppo Romegas had been chosen by the government in 2007. Its plans provided for the dock's restoration, the construction of a cultural, commercial, residential and recreational complex and its operation and management.

Dock 1 was last used in the late 1990s but it will stir back to life in September when it will be the venue for the third edition of the HSBC Premiere Valletta Boat Show, due to be held there between September 24-27.

Dr Gatt said at a press conference that events such as this would show the potential which the Dock 1 area had.

The area is currently also being used as a temporary yacht marina.

The boat show, organised by Network Events, is to feature some 80 power and sail yachts as well as dinghies and related equipment such as deck and navigation tools.

There will also be entertainment, food stalls and attractions.

The area of Dock 1 started being used as a shipyard at the time of the Knights, and the British built Malta's first drydock there in 1848 before deciding to concentrate dockyard facilities in French Creek.