Gżira mayor Conrad Borg Manché has given his cautious approval to new plans for the major Manoel Island development, of which he had previously been one of the most vociferous critics.

Mr Borg Manché said he felt “very close to a compromise” after Midi published a new master plan this week, following a series of consultation meetings with the council and other stakeholders.

The mayor also said he had seen evidence of good faith from the developers, signalling a change in a fractious relationship ignited by a row over foreshore access.

“They’ve moved very close to what we’ve asked,” Mr Borg Manché said, highlighting the scrapping of plans for a hotel at Fort Manoel in favour of an arts and culture centre, and the removal of a planned water taxi pontoon in a popular swimming spot below the fort.

He also praised the reduction in the heights of the apartment blocks that will dominate the western part of the island, from five storeys down to four, and the inclusion of more public, open spaces within the built-up areas of the island.

Acknowledging the widespread desire for the island to be turned into a new national park, Mr Borg Manché stressed that the development was the subject of a contract – a 99-year concession agreement signed with the government in 2000 – and was unlikely to be halted.  “On a personal level, I would love to see a public park, but if development is going to take place, my priority is making sure it is as positive as possible,” he said.

“The project has to be viable for the developer, but also for the public. They can’t just make profit off people’s backs. That is why open space is a priority, and I’m pleased with what has been proposed.”

The development, designed by Foster + Partners, will also include a hotel at the historic Lazaretto, a new marina, public streets and squares with bars and restaurants, a sizeable green park and numerous luxury retail outlets.

The new master plan comes seven months after an earlier draft was released to widespread criticism. Echoing calls from environmental organisations, the Partit Demokratiku urged the government to buy back the concession and turn Manoel Island into a new national park.

To that end, Flimkien Għal Ambjent Aħjar formally applied for the island to be declared public domain, condemning the “unimaginative, speculative” plans. The public domain application is currently under consideration by the Planning Authority.

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