The Corinthia Group has agreed to pay €10.3 million to amend the concession granted to it for land in Ħal Ferħ, allowing the company to develop it for residential use.
A company spokesman confirmed the group had accepted the government’s position, which was based on evaluations made by independent parties.
The parliamentary accounts committee and the national audit office met last week to discuss a resolution on a report by three architects appointed by the government to put a price to the change of use from tourist-related to residential.
The experts, Dennis Camilleri, Matthew Mercieca and Mario Cassar, calculated that the enhanced value would be €10,363,000.
The resolution in favour of Golden Sands Resort Limited was passed by the government MPs.
Opposition MPs did not attend the meeting, saying the party saw “no valid reason” why the meeting was called urgently before parliament convenes next week.
The resolution will still have to be approved by parliament.
The PN said it had asked parliament to reconvene far more urgent issues over the summer recess, including the motion of no confidence in Justice Minister Edward Zammit Lewis and the FATF grey-listing but the government ignored these requests.
The committee meeting lasted just 12 minutes.
No valid reason why the meeting was called urgently
Economy Minister Silvio Schembri explained that the Planning Authority had given permission for part of the site – close to 31,000 square metres – to shift from tourism to residential use.
This followed a decision by parliament’s environment and development planning committee which, in November 2020, approved changes to the 2006 North West Local Plan Policy and the 2008 Ħal Ferħ Development Brief to allow residences to be built on the rural site.
Schembri said this would allow for the development of 25 villas together with roads and public passages.
The developable gross floor area ratio within this zone cannot exceed 9,000 square metres, Schembri said.
In July, Corinthia Hotels submitted plans to build a tourism and residential resort at Ħal Ferħ, near Golden Bay.
Dubbed ‘Corinthia Oasis’, the proposed development will include a 162-room, five-star hotel along with 25 hotel-serviced residences, all with private pools and 24/7 concierge.
The proposed resort and residences will be low-density and low-rise, limited to one and two storeys, the company said.
Islands Hotels Group had acquired the 83,000-square-metre site in 2009 on perpetual emphyteusis from the government. The former military rest camp was previously also used as a tourist complex run by Air Malta but has been unused for several years.
Corinthia Group’s International Hotel Investments later bought the Island Hotels Group and extended a 2013 permit for a tourist complex.
The Corinthia spokesman said the €10.3 million price tag was for the removal of a restrictive condition on a portion of the land already owned on a freehold basis by the company.
“All other conditions governing the land, including its primary use as a low-rise hotel, remain in place and Corinthia looks forward to developing a new, luxury resort once the necessary permits are issued.”