Fort Chambray investors face a €6 million cap on restoration expenses but the government will eventually shoulder the full cost through reimbursements.
An unpublished extract from an agreement seen by Times of Malta, states that the “maximum amount” the new investors can spend on restoring the fortifications and stabilising the terrain underneath is €6 million.
Meanwhile, the government is still responsible “to carry out… at its expense, of full repair and restoration works on the fortifications”.
If needed, the €6 million capping may be increased if the government and the purchaser come to an agreement. This essentially means that the taxpayers can expect to pay up to €6 million on restoration expenses, if not more, if the investors choose to increase their expenses above the capping.
Restoration works are tied to the controversial demolition of the British barracks, which is part of a wider redevelopment of the Għajnsielem landmark. It includes the construction of 105 residential units as well as a five-star aparthotel with 64 ensuite rooms and 50 apartments. Plans were approved by the Planning Authority last month but a coalition of heritage NGOs are crowdfunding to appeal the decision.
Private development
Although the public is paying for these restoration costs, it will not have full access inside Fort Chambray.
The fort’s current concession states that the public will have access to the path found along the inner fortifications and the external areas of the Knights Bakery, the Knights Barracks and the Polverista.
The rest of the fort is part of the private development that includes a gated community. There are open spaces that people can access but these are all part of the private development.
There has also been a lot of controversy around the ditch, which is not listed as a public space in the fort’s concession.
There are no written agreements that say this will be turned into a public space. However, Għajnsielem mayor Kevin Cauchi said the council had several meetings with the developers discussing how the ditch might be used to benefit the residents of Għajnsielem.
Crumbling fortifications are now government’s responsibility
Chambray’s fortifications are deteriorating and urgently require restoration efforts.
Fort Chambray’s original 2005 concession, that transferred the land to Michael Caruana, states that the company was responsible for restoration work but limited to spending a maximum of Lm200,000 (€460,000).
The lands ministry said that this obligation has been fulfilled.
The architect responsible for restoration, Alex Torpiano, said around €650,000 was spent on restoration works between 2005 and 2014. Since 2015, no additional restoration works have been carried out.
Back in June, a bipartisan parliamentary committee unanimously agreed to amend Fort Chambray’s original concession, which would allow for extensive parts of the site to be transferred to new investors. This effectively means that Caruana can sell the concession to a group of unnamed investors.
The amended concession puts the responsibility to restore the fort on the government, which will now bear the entire cost and is given a six-year timeframe to complete these works.
The government is now contractually responsible for the consolidation works of the terrain underlying the fort, the restoration works and the maintenance.
“The government hereby agrees… to carry out and complete… at its expense, of full repair and restoration works exclusively on the fortifications…including without limitation works relating to consolidation of the terrain underlying the said emphyteutical land,” the agreement says.
If investors choose to handle the restoration works themselves, then the government will compensate the costs either through cash, reducing debts owed to the government or through tax exemptions.
The ministry said the government is willing to “deploy the necessary funding for the stabilisation of the terrain to preserve the integrity of the fortifications”.
“One must underline the fact that the works related to the stabilisation of the underlying terrain are necessary irrespective of whether additional development is carried out on the land within Fort Chambray,” the ministry said.
Alex Borg defends the development
The agreement was first mentioned by PN Gozitan MP Alex Borg on Jon Mallia’s show Il-Każin fuq Tokis, sparking confusion over who will be paying for restoration costs. Later, on TVM’s show Mill-Kamra, Borg said any money invested by the investors will “be returned in the future”.
He clarified to Times of Malta that “eventually yes”, the money spent by new concessionaires on restoration works will be reimbursed through tax exemptions on their capital gains.
Borg argued that it is in the interest of the investors to carry out this restoration themselves as soon as possible, as the fortifications are falling to bits and need to be secure before going ahead with the full development.
Unlike the well over a thousand objectors who disagreed with plans to demolish the British barracks, Borg said that the barracks were the “one thing that sticks out” when viewing them from the sea.
“The British barracks were not in the original plans of Fort Chambray,” Borg added, echoing the argument the cultural ministry made when it said that the plans to demolish the barracks align with Gozo’s “historical vision” for the fort by the Knights of St John.
The plans, approved by the PA, show how the interior of the barracks will be completely demolished, while the façade and the flanks will be dismantled and moved further back, out of site from the sea.
The interior of the barracks is a “literal lump of cement”, Borg said, arguing in favour of the developer’s decision to retain the façade and flanks.
In defence of the developers, Borg said that since the barracks are not a scheduled building, they could have chosen to completely demolish it. Instead, they chose to shift it and place it in line with the Knights Barracks.