The Maltese government and TECOM Investments on Monday will be signing the agreement for the beginning of the development of the SmartCity project, which is expected to contribute some Lm229.5 million to the country’s GDP, the Investment, Industry and Information Technology Ministry announced yesterday.
The agreement will allow for the beginning of the development of the project at the site formerly occupied by the Ricasoli industrial estate.
The project contract commits TECOM Investments to guarantee the creation of a minimum of 5,600 jobs within stipulated time frames.
However, the capacity of the planned project allows for up to 7,600 jobs to be created in the ICT and Media Business Park.
A KPMG report on the socio-economic impact of SmartCity predicts that when taking into consideration the multiplier effect of the project, it will be a direct or indirect source of income for some 10,500 people in 2018.
At today’s prices, this will mean that when coupled with profits generated locally by suppliers to the new township, SmartCity would be contributing about Lm229.5 million to the country’s GDP.
On 20 March, parliament unanimously approved the draft contract submitted by Minister Austin Gatt following the conclusion of negotiations on the SmartCity project.
This makes SmartCity Malta the single greatest new contributor to Malta’s economy ever to have been secured through foreign direct investment.
SmartCity Malta will meet the country’s aspiration to be a centre of excellence in information and communication technology.
It will generate high quality jobs in ICT, media trades and other sectors that support the ICT environment, such as tourism, administration and security among others, the ministry said.
The new project will place ICT as one of the new drivers of Malta’s economy, complementing other pillars such as tourism, the manufacturing sector and the financial services sector.
Ahmad Bin Byat, chairman of a senior delegation from Tecom, will preside the signing ceremony together with Minister Gatt.
The delegation from Dubai will also include Tecom chief executive officer Abdullatif Al Mulla and SmartCity executive director Fareed Abdulrahman.
The parties will sign two main documents, namely the deed of the emphyteutical grant and the investment agreement.
The signing will be followed by the continuation of the planning process that started several months before the conclusion of negotiations signalling the commitment of Tecom Investments to the Malta project.
The next step will be for the Malta Environment and Planning Authority to consider the planning applications that will be submitted shortly.