Seventy-five per cent of built-up land at SmartCity will be used to generate employment for up to 5,600 jobs, Investment, Industry, and IT Minister Austin Gatt said yesterday, with the remainder allocated for accommodation.

Forty-six per cent of built-up land will be developed into an ICT and Media Business Park, he added.

One-third of the footprint will be public space, accessible at any time of day or night. This will be managed by the government but Tecom will be responsible for the maintenance of all public spaces.

The minister yesterday gave a breakdown of the agreement framework of the multi-million liri project that will transform Ricasoli Industrial Estate into SmartCity Malta, a multi-million liri ICT and media city that will guarantee employment for at least 5,600 people.

Last Monday the Cabinet of Ministers approved the terms of the agreement after negotiations between the Investment, Industry and Information Technology Ministry and Tecom Investments of Dubai were successfully concluded.

Addressing a packed conference room at the ministry, Dr Gatt said that Tecom Investments will be investing a minimum of $300m (Lm110m), of which $100m will be issued share capital, making this project the largest ever foreign investment initiative to be undertaken in Malta.

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.

Giving details of the agreements, he said the government was imposing a premium of $20m on the land, which it would be reinvesting to take a nine per cent equity stake in the project.

“This equity stake will allow the government to reap dividends from future profits generated by the project,” Dr Gatt said.

The ground rent will be Lm65,000 per year followed by two increases of five per cent after specified periods.

Dr Gatt said the ICT part of the project is projected to be completed within eight years, while the whole project has to be finished by the 14th year. He said the agreements stipulate that Tecom will provide a guarantee for all obligations taken on by SmartCity Malta and SmartCity Dubai and nothing can be changed unless approved by the government.

“The statute cannot be changed and the ground rules cannot be changed unless it receives the government’s approval,” Dr Gatt emphasised, adding that there were penalties in the event that Tecom defaulted. The Dubai investment company is also liable to penalties if it fails to generate the agreed number of jobs, he added.

For its part, the government is obliged to have its proposed services unit up and running and it will be expected to provide required services within 10 working days. The government is also obliged to improve the road network to the area and to stop the sewage outflow by December 2008. It will also ensure that it adheres to the planning schedule and to introduce a new taxation system that has been agreed upon with the EU.

Dr Gatt said the government was now waiting for Tecom to finalise the master plan which will be submitted for government and parliamentary approval.

The minister said the two parties will now be focusing on finalising the contractual documentation in the coming days so that it can be submitted to parliament for discussion and approval.

He said the time taken to approve the project depended, in part, on the Labour Party.

“If the opposition backs the project and votes in favour during parliamentary committee sittings, we will proceed to apply for the necessary development briefs and permits from Mepa. Otherwise, we will have to go before the full house for approval. Demolition work will begin when all the necessary permits are issued,” he said.

The agreement is expected to be signed when the remaining factories in the industrial estate are relocated, after which Tecom will proceed with the international launch of the project.