Watch: Abela sees 'reasonable basis' for Manoel Island deal with MIDI

Updated 8.12am with Manoel Island: Post Għalina coalition statement

There was a reasonable basis for an out-of-court settlement between the government and MIDI on Manoel Island, the prime minister said on Wednesday.

He was replying to questions by Times of Malta hours after the government had an initial meeting with the developers. On Tuesday the government launched judicial proceedings against the company, claiming breach of contract because project completion timelines had not been met. MIDI denied the claims. The government wants to return Manoel Island to public ownership as a public park.

Abela said MIDI put forward a proposal that the government would now consider.

“It is a proposal that may offer a basis which can potentially lead to an out-of-court settlement,” he said.

Sources close to the talks said the proposal includes the government paying for expenses MIDI has made so far on the island. That would include the cost of restoring Fort Manoel.

Abela, however, declined to go into details.

“I am confident that there is a good basis on which we can continue talks. Today was our first meeting and we have started on a good note,” he said.

Further frequent meetings would be held to arrive at an agreement, he said. While he was not ruling out court action, he said he wanted to avoid it.

“I hope for an out-of-court settlement so that green open space can be given back to the public as soon as possible.”

He said court litigation that could take up to a decade was not in the public interest as he wanted the site to be returned to the people as soon as possible.

A public deed between the government and MIDI in 2000 granted the company a 99-year lease on Tigne' and Manoel Island. It provided that works on a mixed development must be “substantially complete” by March 2026. Activists and the government argue that is now impossible.

The government has only recently stated its support for Manoel Island to be converted into a public park instead of being developed.

Previously it said that its hands were tied because of the 25-year-old agreement.

The new position came after around 30,000 signed a petition demanding Manoel Island's return to public hands so that it can become a green lung within one of Malta’s busiest areas.

Remain vigilant

The Manoel Island: Post Għalina coalition has welcomed the news “with satisfaction” saying it was a result of the “power of collective action”.

In a statement on Thursday morning, Moviment Graffitti, one of the leading members of the coalition, said they will “remain vigilant and present during these next steps” and called the public to continue to stand by them.

“Now that the ball is rolling to return Manoel Island to public ownership, we reiterate that the proposed park should be managed by competent environmental and cultural entities,” Graffitti said.

“In our vision, Manoel Island can become a shared space that benefits the local and national community first and foremost, while also producing a touristic product that is respectful to its context.”