Talks on the redevelopment of the White Rocks are progressing, the Economy Ministry said today.

It denied a report in MaltaToday that the project had 'hit the rocks’.

"The ministry can confirm that, contrary to what is being reported, the negotiations with the preferred bidder, White Rocks Development Company, are still ongoing and progressing," the ministry said.

It reaffirmed the government's  commitment to maximise the economic, environmental and touristic potential of this long-abandoned and dilapidated site.

The newspaper said this morning the problem in the talks is over price, with the would-be developers making comparisons with what the dp Group paid for their land in St George's Bay.

Just two bids were submitted for the privatisation and development of the proposed luxury village at the White Rocks, a former holiday complex originally built by the British forces as married quarters for servicemen.

Eleven proposals had been submitted in the call for expressions of interest in the project.

The process was launched in June 2015 after the government earmarked the site for upmarket real estate development, including five-star hotels and luxury units.