The SmartCity Malta project is on track, Caludio Grech, the project's CEO insists in an interview with The Times Business (i-Tech page 21) today.
In a separate statement, Infrastructure Minister Austin Gatt told The Times Business that the ministry can "categorically state that SmartCity Malta is definitely not in breach of the contractual obligations it has made with the Government of Malta".
The project has been very much in the public eye lately with the departure of two key people - senior project manager Martin Attard Montalto and infrastructure manager Joseph Anastasi - coupled with the fact that no construction work is taking place at the site and no further development applications have been submitted to Mepa.
Furthermore, reliable sources have told The Times Business that the majority shareholders in SmartCity Malta, namely Tecom Investments and Samai Dubai, are attempting to control the way the project is managed in Malta "by remote control" leading to frustration locally. The government of Malta is a minority shareholder in the project.
In today's interview Mr Grech said that the international crisis has presented SmartCity Malta with both challenges and opportunities.
"On one hand the international market is more challenging since many major companies are not planning to expand their operations and the global IT spending is experiencing a marginal reduction this year. Nevertheless, it also presented opportunities in the sense that a number of companies which are established in destinations with a higher cost of operation are now actively looking at relocating at least part of their operation in a location which is equally (if not more) effective but which offers a lower total cost of operation. SCM is striving to address the challenges by exploiting the opportunities emerging in the market," he said.
Despite the lull in construction work Mr Grech says that progress at SmartCity Malta is "as scheduled and planned".
"SmartCity Malta 01 will be ready for operation in 2010 providing its business partners with state-of-the-art infrastructure and facilities," he said.
Asked whether there are any Mepa permits or permits from other Maltese authorities still pending before the construction of the buildings speeds up at Ricasoli, Mr Grech replied: "We have strong ties with Mepa and other government authorities regarding the development of SmartCity Malta. Our relationship with them is ongoing for discussions on infrastructure, roads, utilities, etc. that affect SmartCity Malta."
Regarding the possibility of Microsoft being the first tenant at SmartCity Malta as mentioned by Minister Austin Gatt early in 2008, Mr Grech said: "Insofar as I recall back then Minister Gatt stated that Microsoft had expressed a serious interest to establish a competence centre in SCM. If and when Microsoft or any other major player set up at SCM, there will be the appropriate statements made by the two sides."
Asked whether SmartCity Malta was still committed to create the 5,600 jobs promised at the launch of the project, Mr Grech answered: "With respect to the employment commitments, the company is making a massive investment in the development of an elite self-sustained township and so it stands to reason that it will engage intensively to create the committed levels of employment."
The Times Business also sent a list of questions to Infrastructure Minister Austin Gatt about the state of the SmartCity Malta project, the alleged conflict between the local management of the project and the owners in Dubai and whether there was any truth in the allegation that CEO Claudio Grech was about to resign and return to the Infrastructure Minister.
Dr Gatt replied: "The Government of Malta is a minority shareholder in SmartCity Malta. We do not control its project implementation, or its human resources management. You may therefore wish to put the questions you have concerning these matters directly to SmartCity Malta. On the rest of your questions, the information that we have as minority shareholders is consistent with the statement issued by SmartCity Malta following the last meeting of the Board of the Company on which we sit.
"The statement said that 'to date, SmartCity Malta has demolished all the factories in the previous industrial estate, cleaned the site, constructed an administrative block for its operations and in November 2008 commenced the construction of SCM01'. The ministry can, however, categorically state that SmartCity Malta is definitely not in breach of the contractual obligations it has made with the Government of Malta.
"Regarding Claudio Grech, absolutely no discussions have ever been held in the sense of a possible return to the ministry so the rumour is a complete invention.
"You might also be interested to learn that the 50 per cent of two resignations from staff was due to the fact that this ministry offered Martin Attard Montalto the job of COO at the Network Infrastructure Directorate at ADT."