Transport Malta will most likely lease the base layer of the A3 towers in Paola comprising of three large floors and relocate most, if not all of its directorates there, The Malta Independent has learnt.
The multi-million project, undertaken by the Montebello brothers, was given MEPA’s green light in 2005. Most of the apartments “with a view” overlooking the Addolorata Cemetery, which are situated in the three medium rise towers, remain mostly uninhabited. The base of the structure, which was built for commercial purposes, remains unfinished.
Transport Malta is currently evaluating bids for a building to rent with the intention of relocating a number of offices.
Reliable sources close to Transport Malta have claimed that the authority’s adjudication committee has shortlisted six bids, and the Montebello A3 towers are TM’s number one choice.
According to our source, the Paola building is being considered by Transport Malta as the best choice because of an ideal office space layout where the authority can house the different directorates and reception areas. The number of public car park spaces is also considered as a plus.
In order to relocate to the A3 Towers, the building’s designation would have to be changed from commercial to office use. This paper can confirm that the Montebello brothers had applied for a change of use in 2010 but the application was suspended for some unknown reason. JPM Ltd reactivated the application on 20 May of this year and our sources claim that the target date for the building use to change is the 26th – next Monday. “It seems,” one source said, “that the application was reactivated as soon as the developers got word that the building might be chosen by TM.”
Rent close to €500,000 annually
The Malta Independent is informed that TM would have to fork out almost half a million euro annually in rent costs should the deal go through.
The total area being considered for use by TM measures some 4,200 metres squared. At the suggested price this works out at some €117 per square metre, which is considered as an advantageous price. Our sources say that Transport Malta will also have the option of buying the property.
It is not yet known whether the Montebello brothers’ company – Paola Estatese Ltd – will be asked to carry out finishing works or whether these works will be undertaken by TM – further raising the costs.
JPM Ltd, which is owned by brothers Jeffrey and Peter Montebello, has been facing financial troubles for the past few years after four of their mega projects – the A3 towers, the Jerma Palace Hotel, the former Galaxy Hotel in Sliema and the Mistra Heights projects fell through. JPM Ltd had to sell the Mistra land after the company defaulted on a €42 million loan. Their plans to transform the Jerma Palace into high-end apartments was also derailed after a change in MEPA policies. The Galaxy Hotel project was abandoned in its second phase, reportedly because of cash flow problems. And the A3 towers in Paola, once advertised as “incredible views of the island” remain practically uninhabited.
In reply to questions by this paper, Transport Malta denied that it is planning to purchase the A3 towers but failed to comment if it is planning to rent the structure. Questions sent to the Office of the Prime Minister remain unanswered.
Minister promised transparent and accountable process
In reply to a series of PQs by PN MP Toni Bezzina back in February, Transport Minister Joe Mizzi said that the call for proposals for the leasing of offices for TM, the government would follow the “fundamental principles” of transparency, fair competition and accountability that are essential in public procurement. Mr Mizzi said that the government would use the MEAT system – Most Economically Advantageous Tender.
In another PQ the Transport Minister said that a site owned by TM in Pembroke is not adequate for the authority’s office needs. He also said that the government is looking for office space to relocate TM’s Roads and Infrastructure Directorate, the Land Transport Directorate (including the Sa Maison and Floriana offices), and potentially also the Civil Aviation Directorate.
Area to benefit from facelift
Coincidentally, Transport Malta will soon embark on a massive project at the Addolorata Junction, where all roundabouts, stop signs, traffic islands and zebra crossings will be replaced by a system of fly-overs, ensuring a smooth flow of traffic. The project will also include embellishment works around the area 89,000 square metre area. Up to 45% of the area will include landscaping, pedestrian zones, cycling tracks and a parking area. The €70 to €80 million project will take no less than two years to be completed.