Midi confirms it will receive €43 million for return of Manoel island to state

Updated 8.57am Tuesday with Midi statement below.

An agreement has been reached between the government and Midi Consortium for the termination of the 99-year emphyteutical grant of Manoel Island and Fort Tigné.

The agreement was announced in a Facebook broadcast by Prime Minister Robert Abela, who said the two prime sites will be "returned to the people".

Culture and Lands Minister Owen Bonnici later revealed that the government will pay €43 million as part of the deal, being just over half of what the consortium spent on Manoel Island, mostly on the restoration of Fort Manoel and the building of an electricity distribution centre. MIDI had requested €78 million, Bonnici said.  

The Midi consortium was granted the concessions in 2000 to develop luxury apartments on both Manoel Island and Tigné Point. 

No such development has been made on Manoel Island and the government was pressured by environmental NGOs to enter into negotiations with the consortium to stop the development, for environmental reasons. 29,000 people signed a petition urging the government to turn the island into a national park. They argued that Midi was unable to meet its contractual obligations to substantially complete the project by the March 2026 deadline. 

In June the government filed a judicial letter against Midi, claiming it did not fulfil its obligations in terms of the land concession deed of June 15, 2000.

The planned building of apartment blocks on Manoel Island will now not happen. The island will instead become a national park.

In his broadcast, Abela said he had just been informed that the Midi Board had agreed to the termination of the emphyteutical grant of Manoel Island and also to the return of Fort Tigné.  

Fort Tigné is to be handed back to the government after having been earmarked for development into a hotel by Joseph Portelli.

The government was also under pressure to have the historic fort returned after it was revealed that developer Joseph Portelli had entered into a €2.5 million promise of sale agreement with Midi to take it over for conversion into a hotel. 

Abela said the talks had not been easy, but the government was determined to have both properties returned to the people.

He said the government would not pay anything for the return of the lands, but would pay half the verified spending by Midi on Manoel Island.

The way was now open, he said, for these sites to become national parks along with the plans for the White Rocks, Fort Campbell and Fort Salvatore in Kalkara. 

This, Abela said, was a happy occasion for the country and the people, who had been united behind a common purpose. He thanked all those involved in the talks. 

Government to pay €43 million - Owen Bonnici

Meanwhile, Culture and Lands Minister Owen Bonnici in a Facebook post said Midi had requested a refund of €78 million for its works on Manoel Island, which included the restoration of Fort Manoel and the building of an electricity distribution centre.

 "We held firm and managed to agree on a payment of €43m to the company, just over half the requested amount. That includes Fort Tigne’, which as part of the deal will also be returned to the people."

He said the next step will be a parliamentary resolution once Midi concludes internal procedures.

Midi: Deal is subject to the shareholders' approval

Midi in a statement to the stock exchange, confirmed the deal, explaining that while the emphyteucal concession over Manoel Island and Fort Tigné shall be rescinded, the concession over Tigné Point (excluding Fort Tigné) shall remain in full force.

It said the in-principle agreement remains subject to a number of conditions, including the finalisation of the terms under which the rescission will take place, as well as approval by the company's shareholders at an extraordinary general meeting. The meeting will be convened once the terms of the deed have been agreed upon by the company and the government and following its approval  by the House of Representatives.