The government's decision to use Zonqor Point for the new 'American University of Malta' showed a disregard for the recently enacted Planning Law which laid down that ODZ areas should be taken up only as a last resort when no alternative sites existed, members of the Opposition said at a meeting of the parliamentary Audit Committee this morning.

MPs Marthese Portelli and Jason Azzopardi pointed out that Mepa itself had identified a site in Tarxien which met all the government's criteria - it is in the south, it is of the right size, and it is easily accessible.

The comments were made when the committee continued to discuss government contracts with the Sadeen Group for the transfer of a site in Zonqor, Marsascala, and property in Cospicua near Dock 1 for the 'American University of Malta.'

When the sitting started, Labour MP Godfrey Farrugia asked if people would still have access to the coastline at Cospicua. Could people go fishing there?

Would the shops on site be retail or just for students?

Would dormitories in Marsascala be exclusively for students and lecturers or maybe for others as well?

Could the contract be rescinded if conditions were not observed?

Notary Charles Mangion (PL) said accessibility to the foreshore in Cospicua would continue. In Marsascala the site was away from the foreshore and the foreshore would therefore remain accessible.

On the shops, Dr Mangion said the contract should remove the word ‘retail’ and keep ‘project related outlets,’ as the facilities were aimed primarily for use of the project.

On the dormitories, he said they were primarily aimed for staff and students. Nearby establishments, he was sure, would benefit as well when the dormitories were full.

Dr Mangion said the clause on ‘Permitted Use of the designated land’ said the purpose has to be ‘solely educational.’ Educational was defined by the government or the Commission for Higher Education.

In event of default the government would be entitled to dissolve the grant.

Jason Azzopardi (PN) said the contract provided for 'unhindered right of passage' for the Cospicua site but not for the Marsascala site.

Dr Mangion said the Marsascala site did not include the foreshore and access was therefore unhindered.

Dr Azzopardi noted that a section in Marsascala was being handed over for landscaping purposes.  Dr Mangion said access would be unhindered in Cospicua but it would be regulated in that part of Marsascala.

Dr Azzopardi said the Opposition disagreed with hindered access.

After consultations, Dr Mangion said public access would be unhindered.

Dr Azzopardi said the text should therefore reflect what Dr Mangion said.  

Dr Mangion said people could not enter unhindered on the campus itself.

Dr Azzopardi said the comparison should be with SmartCity, where access was completely open.

Evarist Bartolo said people did not have unhindered access to any university campus.

ZONQOR SITE CHOSEN WHEN TARXIEN SITE IN DEVELOPMENT ZONE WAS SUITABLE

Marthese Portelli (PN) said that in terms of the recently-amended planning law, she was asking what basis the government used for its 'reasoned decision' for virgin land in Marsascala to be developed, in this case for a university.

Dr Mangion said the government had drastically reduced the site it original chose in Marsascala and a substantial part of the university would now be set up in Cospicua. Most of the Marsascala site which was being transferred to the Sadeen Group was already committed and used by the Marsascala sports centre. The only part not committed was small and would be used mostly for landscaping. No speculation was involved and this was a project that would reap an economic benefit.

Dr Portelli said Mepa in its site selection report had said a site in Tarxien, already in a development zone, was suitable for the university. It was of the right size, it was in the south and easily accessible. So why did the government opt for Zonqor, Marsascala? 

Dr Mangion said he had nothing to add other than it wanted to boost the Marsascala area.

Dr Portelli said that in terms of the law (SPED) the government could opt to develop virgin land in ODZ only when there were no suitable alternatives, and a reasoned decision had to be given. In this case, a suitable alternative was available, and the government had not given the reasons for its decision to opt for Zonqor. Why opt for an ODZ site when another site was available?

Dr Mangion said the site of the Marsascala pool was already committed and the further extension (into ODZ) was small.

Dr Portelli said there were also other sites in the south which the government could have opted for.

Dr Mangion said he had nothing to say.

Dr Portelli said the government was going against the SPED which it itself drew up.

Dr Mangion said that ultimately the government decided that the reduced Zonqor site was the most feasible. Only 18,000 sq metres were in ODZ. The decision was taken on the basis of environmental studies and social and economic benefits for the zone. It was also worth remembering that this was a temporary emphyteusis and could not become indefinite.

Jason Azzopardi said it appeared that the Tarxien site was fully owned by the government while the Zonqor site was not. 

Mr Bartolo said every alternative site had been examined and the government felt Zonqor was the best choice in terms of the law.

Godfrey Farrugia (PL) said the new university, divided between Zonqor and Cospicua, would contribute to improved wellbeing for the people of the area and the economy of the country. The Tarxien site would be used for housing.

Tonio Fenech (PN) said the government initially said it wanted the university in the south. So why the insistence on Zonqor only and not other sites in the south, such as Tarxien?

FINANCING

Mr Fenech asked if studies had been made to establish if the Sadeen Group could finance the project. This country already had a problem with Electrogas with regard to the power station and the government had been required to issue a €360m guarantee.

Dr Mangion said the required due diligence had been made. The contract also made it clear that if funds were raised from the banks, this could only be done for the project.

Mr Fenech asked who carried out the due diligence exercise. He regretted that the responsible minister was not in the chamber to reply to questions.

Dr Mangion said the due diligence was made 'by the government'. Godfrey Farrugia said the usual structures were used.

Mr Fenech again asked who carried out the exercise. Mr Farrugia said a full exercise was made.

Dr Azzopardi said it should be tabled.

Replying later, Mr Bartolo said the due diligence was made by the the MFSA using foreign companies. 

Mr Fenech asked if the government would guarantee that the government would not need to issue financial guarantees, as happened for Electrogas. 

Dr Mangion said that if the investors ran into financial troubles, the contract could be dissolved. 

Asked if there were penalties clauses in the contract, Mr Bartolo said the ultimate sanction was dissolution of the contract.