The Malta Independent 25 August 2019, Sunday

64-year extension for Dragonara casino lease unanimously approved despite no competitive tender

Tuesday, 2 July 2019, 17:48 Last update: about 3 months ago

Parliament has unanimously approved a 64-year extension to Dragonara Gaming's lease of a tract of land that holds the Dragonara Casino in Paceville, despite a competitive tender not being issued.

Dragonara Gaming had a 10-year lease agreement in place with Casma Limited - which is government owned - which was due to expire next year, but this has now been extended by 64 years, meaning that it will run to the year 2083.

The property in question covers the Dragonara Casino and the land immediately surrounding the building in Paceville.

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The extension was approved unanimously in parliament after a motion was tabled by Economy Minister Chris Cardona.  Deputy Prime Minister Chris Fearne seconded the motion, while no member of the Opposition opened any form of discussion on the terms and the conditions of the concession

Under the previous agreement, Dragonara was obliged to invest a total of €17 million into the property, which the parliamentary motion says have been more than fulfilled.

The motion stipulates that the annual and temporary Sub-ground-rent to be paid by Dragonara to Casma during the Term of this Deed shall be €500,000 for the first 15 years of the agreement, and then for the remaining 49 years of the term, €1,000,000 subject to an increase of 5% every five years thereafter, with the first increase being applicable on the 21st year of the agreement.

 


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