The Cabinet of Ministers yesterday approved the agreement framework to transform Ricasoli Industrial Estate into SmartCity Malta, a multi-million liri ICT and media city.
The Cabinet approved the terms of the agreement after talks between the Investment, Industry and Information Technology Ministry and Tecom Investments of Dubai were successfully concluded.
Minister Austin Gatt was instructed by the Cabinet to close negotiations and proceed with the completion of the documentation required for parliamentary scrutiny.
In a statement yesterday afternoon, the ministry said the terms of the agreement retain the principles agreed in the Heads of Agreement signed by Minister Austin Gatt with then Tecom chairman and CEO Ahmad Bin Byat in March 2006.
SmartCity Malta will transform the current Ricasoli Industrial Estate into a state-of-the-art ICT and Media City on the models of Dubai Internet City and Dubai Media City devised, owned and operated by Tecom Investments.
Tecom will be investing a minimum of $300m (Lm110m) making this project the largest ever foreign investment initiative ever to be undertaken in Malta, generating a guaranteed 5,600 jobs concentrated in the private sector in the knowledge-based environment.
The new Malta facility will be the first European outpost for Dubai Internet City and Dubai Media City and it is expected that global ICT and media players will be able to focus their European operations and business through SmartCity Malta.
Tecom Investments FZ-LLC, through their subsidiary Smart City Dubai FZ-LLC will be partners with the government of Malta in SmartCity (Malta) Ltd in which the government, through its Malta Government Technology Investments Ltd, will retain equity of nine per cent, the ministry said.
Following the conclusion of the negotiations, the parties will focus on finalising the contractual documentation in the coming days so that it can be submitted to Parliament for discussion and approval.
The SmartCity project has had its fair share of controversy and stumbling blocks over the past year. While the government used the project as a public relations tool, behind the scenes the government and Tecom did not see eye-to-eye on a number of crucial areas.
Minister Austin Gatt vented his frustration last November when in Parliament he warned the chief negotiator of Tecom Investments that unless agreement was reached on the SmartCity project in the coming days, the government would pull out of the negotiations.
The following day, Tecom replied that the project in Malta was still under way with the government, that it was also keen to reach an agreement and the remaining issues need to be resolved to the satisfaction of both parties so that is would be a win-win situation for all stakeholders.
Two months later, the SmartCity project is now back on track.