MIDI says better to strike a deal than fight in court

MIDI has told its shareholders that it is in the company’s best interests to avoid litigation and reach a settlement over Manoel Island.

During the company's annual general meeting on Thursday, MIDI chair Mark Portelli addressed a series of questions submitted by shareholders about the ongoing Manoel Island saga, with the company now formally in discussions with the government to return the land.

The AGM took place a day after company officials held an initial meeting with the prime minister, who later appeared optimistic about the prospect of striking a deal.

MIDI also appeared to share that view, telling shareholders that an amicable resolution would benefit the company more than a protracted legal dispute.

Ultimately the project was doomed to fail without the necessary government and political support, the shareholders were told.

Portelli added that it would be “naïve” to think otherwise and forge ahead.      

MIDI files judicial reply

Nevertheless, MIDI continues to dispute the government’s claim that it has breached the concession agreement, repeating its argument in a judicial reply to the government’s own judicial protest filed earlier in the week.

In its protest, the government demanded MIDI pay penalties for breaching the concession agreement by going beyond agreed timelines.

MIDI’s reply, filed in the courts on Thursday, describes the government’s claim as “unfounded,” with the company saying it would hold the government responsible for damages caused by public statements about the matter.

MIDI goes on to contest the government’s suggestion that a particular clause in the concession agreement, clause 8.1.4, dictates the project’s time frames, pointing to several other clauses that it says automatically extend the project’s deadline.

Ultimately, MIDI argues, it is entitled to an automatic extension of “at least” 10 years and counting.

“This is not news to you, given that in several discussions, even recently, you never contested that the concession should work in this way,” MIDI said in its reply, addressing the government.

Several of these arguments were also raised at the AGM, with MIDI outlining a series of issues which it says have caused delays beyond the company’s control.

These include lengthy negotiations with the government, archaeological finds, a revision of the site’s original masterplan and an ongoing heritage impact assessment.

MIDI values concession at €350 million

During the AGM, MIDI said it valued the concession granted for Tigné Point and Manoel Island at a total of €350.3m.

This included a cash premium of €57.8m, total ground rent fees of €180.6m over 99 years, and infrastructural and restoration costs estimated to total €112m.

It remains unclear how much of this is attributable to Manoel Island, nor is it known what costs the company is hoping to recoup through a settlement.

Nevertheless, the AGM shed light on MIDI’s finances, with the company running at a loss of over €3.7m last year and its share price dipping slightly to reach its lowest level in five years.

The company declined to comment on negotiations when contacted by Times of Malta, with a spokesperson saying, “the discussions between the government and MIDI are confidential and we are not at liberty to provide any details”.