MIDI plc is in talks with AC Enterprises Limited to develop its Manoel Island project, the company said in a public announcement on Monday.

AC Enterprises forms part of the Anton Camilleri-led AC Group of companies, which provide quarrying, construction and property development services. Camilleri, known by the nickname 'il-Franċiż', is a major developer best known as the owner of the Villa Rosa complex in St Julian's. 

The two companies are exploring “the possibility of establishing a joint venture with respect to the development of Manoel Island,” the publicly-listed MIDI said, and have entered into a non-binding memorandum of understanding to that effect.

MIDI said discussions are ongoing and cautioned that the deal could yet fall through. It did not provide any further detail in its statement. 

MIDI was given a 99-year concession to develop Manoel Island back in 2000. The area has remained undeveloped since then, though plans to develop it have accelerated in recent years.

The company revised its plans for the area following criticism from residents and civil society groups and obtained planning approval for its revamped masterplan earlier this year.

It intends to build residential, commercial and leisure facilities with underground parking, upgrade the yacht marina with a breakwater and develop public amenities such as sports facilities and an arts centre. 

An initial plan for the company to partner with the Tumas Group to develop the project fell through in December 2019, after Tumas Group director Yorgen Fenech was arrested on murder charges.