The private company taking over Gozo General Hospital enjoys “sole discretion” on whether to extend a concession of public land from 30 to 99 years, though the government insists it has the right to demand the reversion of the title in its favour.
A deed for a temporary emphyteutical concession, signed by Malta Industrial Parks on behalf of the government on March 22, states that after the expiry of the “original term” of the concession of 30 years, Vitals Global Healthcare Assets Ltd could opt to extend the term by another 69 years.
“Upon the expiration of the said term of 30 years, this emphyteutical grant may be extended at the sole discretion of the Grantee [Vitals Global Healthcare] for a single and additional term… of 69 years,” the deed states.
“Such extension may only be made by the Grantee with respect to all the sites (in their entirety and not in part) and under the same terms and conditions of this emphyteutical deed,” the notarial documents adds.
The emphyteutical deed signed in March of this year clearly states that, after the 30 years of the service concession are over, the government has the right to demand the reversion of the title in its favour
The Health Ministry is insisting it is not true the government renounced its right to decide whether to extend the emphyteutical concession for Gozo Hospital beyond the agreed 30 years. A ministry spokeswoman said yesterday: “Allow me to reiterate that the emphyteutical deed signed in March of this year clearly states that, after the 30 years of the service concession are over, the government has the right to demand the reversion of the title in its favour for Karen Grech and Gozo General Hospitals.”
It is not yet known whether the government entered into the same type of commitment and offered identical conditions to Vitals with regard to St Luke’s and Karen Grech hospitals.
This newspaper asked the government to furnish it with copies of the notarial deeds with regard to the two hospitals in Malta but to no avail.
According to the deed seen by this newspaper, the site of the Gozo General Hospital, having a superficial area of approximately 72,880 square metres, will be given to Vitals for an annual temporary ground rent of €156,750 for the first 30 years.
The deed specifies that in the event that Vitals exercises the option to extend the deed, there would be an increase of 30 per cent in the ground rent to be paid to the government.
The deal for the public-private partnership between the government and Vitals was negotiated by former health minister Konrad Mizzi and Projects Malta, an entity falling under the political responsibility of the Office of the Prime Minister.
ivan.camilleri@timesofmalta.com