Dr Lawrence Gonzi has invited the chairman for a meeting, to be held preferably next week.

A spokesman for the Prime Minister said that the letter acknowledges the fact that the negotiations have broken down, but shows the government’s intention to reach a conclusion that is convenient for both.

The government is insisting on two issues, which are linked to each other. The first is on the costing of the hospital and the second is on the establishment of a date as to when Skanska will complete the project.

The government wants to establish penalties if this deadline is not met, the spokesman said.