The much-awaited SmartCity project, expected to contribute Lm229.5 million to the country’s gross domestic product, is to be signed this morning.
The Maltese government and Tecom Investments will be concluding the long drawn out negotiations by putting pen to paper, allowing for the beginning of the development at the site formerly occupied by the Ricasoli industrial estate.
It was in February last year when Investment, Industry and IT Minister Austin Gatt announced that around Lm110 million were expected to be invested over an eight-year period by the owners and operators of the hugely-successful Internet City in Dubai.
The heads of agreement between the government and Tecom Investments was signed a month later.
Since then, the government has been involved in negotiations with Tecom over the project, which commits Tecom Investments to guarantee the creation of a minimum of 5,600 jobs within stipulated timeframes. The capacity of the planned project however 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 10,500 people in 2018.
The project did not come without controversy, especially with regard to the amount of land that is to be used for ICT, with Labour saying that only 19 per cent of the area will be used for ICT while the government insisted that 60 per cent of the jobs will be ICT-related.
The controversy then moved to Parliament earlier this year, ending up with the Labour opposition voting in favour of the project, with reservations.
Today, a new chapter will be turned when the deal on SmartCity, described as the single greatest new contributor to Malta’s economy, will be signed. Ahmad Bin Byat, chairman of a senior delegation from Tecom, will preside over the ceremony together with Minister Gatt.
The parties will sign two main documents, 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 ago.