MIDI denies breaking concession agreement for Manoel Island
Company says agreement cannot be 'unilaterally set aside'
The developers behind controversial plans to develop Manoel Island have denied defaulting on obligations agreed to in the concession agreement to develop the area.
In a statement, MIDI said it “categorically affirms that it is not in default of its obligations”, and that it was in “full compliance with all contractual and legal requirements”.
It added that it was “fully committed” to the project, which it described as “definitively approved and not subject to further appeal”.
It stressed the contract was legally binding and cannot be disregarded or unilaterally set aside.
The company said it was responding to “recent rumours and speculation” in the media, including Prime Minister Robert Abela telling Times of Malta on Tuesday that the government was analysing the agreement for breaches.
MIDI said it was fully open to any scrutiny or review by the government or its agencies, while declaring its confidence that any "objective review" would confirm it acted within the provisions of the agreement.
Reiterating a statement on Wednesday, the company insisted that any delays to the project – highlighted by campaigners as grounds for terminating the contract – were caused by permit delays.
The company said development deadlines had been automatically pushed back due to permit issues and archaeological findings at Tigne Point and Manoel Island.
“This mechanism is clear and was accepted by government in 2000 when the ceed was approved,” it said.
The statement comes at a time of shifting political direction on the project. On Wednesday, Opposition leader Bernard Grech said his party was willing to do “everything possible” to turn Manoel Island into a national park, marking a change in tack from his previous assertion that contracts should be respected.
The government’s analysis of the project also signals a change in direction; last month, Abela appeared to downplay the possibility of acting against MIDI, telling a Labour discussion programme that retaking Manoel Island would cost “hundreds of millions” of euros and would not represent a good use of public funds.
On Tuesday, Abela hinted at possible legal action against MIDI in case of a breach, saying was “not excluding any way forward”.