The government will be refunding the Sadeen group the money it spent on architects and Planning Authority applications, according to a resolution that was approved in Parliament on Wednesday evening. 

The resolution will see Sadeen renounce its emphyteusis on part of its Cospicua campus and the land it had been given at Zonqor Point, Marsascala, in exchange for a site in Smart City, Kalkara.

The government had said it would be giving Zonqor back to the public after the American University of Malta failed to reach its intended targets.

The original contract, drawn up in 2016, would have seen the AUM given a 41,000sqm tract of land at Marsascala. AUM has built a campus in Cospicua and had already submitted plans to develop it further, including through the construction of a dormitory. Part of the original agreement included the embellishment of the Dock 1 area in Cospicua. According to the resolution, presented by Economy Minister Silvio Schembri, AUM has spent some €50 million on restoration works.

The resolution says the Covid-19 pandemic and travel restrictions affected the educational system, including AUM’s performance.

AUM will be renouncing its title over the area known as St Paul’s Car Park and Zonqor which add up to some 45,000 sqm. It will instead be given a 31,658sqm site at Smart City.

The government will be embellishing the car park area and add a number of parking spaces

AUM will be compensated for expenses related to architects, PA applications and other “quantifiable expenses.” The resolution does not mention any figures.

The resolution also states that AUM must adhere to its obligations with regard to job creation. According to the 2016 document, it was expected to create around 300 jobs.

The emphyteusis is of 99 years, starting from March 2016.

The lease amount remains the same.

MPs voted on the resolution after a lengthy, sometimes heated debate. It was approved by 38 votes in favour and 31 against.

 

Robert Abela can either serve public’s interests or Sadeen’s interests’ - PN

Meanwhile, the Nationalist Party has said that Prime Minister Robert Abela is facing a choice on whether to serve the public’s interests or Sadeen Group’s interests.

The government today has the final opportunity to give back what it took from the people to give to Jordanian speculators, the PN said in a statement prior to Wednesday’s plenary session.

The PN said that it had been trying to explain to the government why the land in Zonqor Pont should belong to the public, but said that the government had never listened.

“The land at Zonqor Point was gifted to the Jordanian Sadeen as part of an agreement which was ambiguous right from the start.  Now, the government is insisting that it should give them land in Smart City to be used by students which nobody knows who or where they are,” the PN said.

The party said that rather than admitting to being involved in this situation, Robert Abela’s government is once again manoeuvring with Sadeen to appear that the Zonqor land is being given back to the people.

“However, this agreement is nothing more than a slap in the face,” the party said.

The party noted that while during the electoral campaign, Abela said that the Zonqor land will be given to the public  - something which the party said he had done to win votes – he did not say that there was already an agreement for Sadeen to get their hands on land in Smart City which is worth €63 million for just €15,000.

“Today, Robert Abela needs to choose whether to serve and protect the interests of the Maltese and Gozitan people, or the interests of foreign speculators,” the PN said.

The statement was signed by the PN’s Verification Committee members Rebekah Cilia and Darren Carabott.

‘We want to facilitate the foreign investment in Malta’ - Robert Abela

Speaking in Parliament, Prime Minister Robert Abela stressed on the importance of voting in favour of the amendments to the AUM contract since Malta has to aid the investment made in the country “for the benefit of everyone.”

Stating that this plan was approved by the Maltese public when the Labour Party won the election with a “strong mandate”, Abela said that since the new priority of the government is to create green spaces for families.

“The renegotiated contract with AUM will see the Maltese public gain back 40,000sqm of of land in Zonqor and 5,000sqm of land in Cospicua. Through this, AUM can continue to expand and succeed and the Maltese public can enjoy the land.”

As part of the renegotiations, AUM will be given 32,000 sqm of land, taking up a small part of the already existing Smart City. This was done by reaching a consensus agreement between both parties, Abela said.

“The contract with AUM definitely could have been handled better but we have to keep in mind that AUM still invested a great deal in Cospicua and the surrounding area. We cannot do like the Opposition wants us to do and just tear up the contract - there are legal obligations.”

As part of the new contract, Smart City now has the obligation of constructing educational premises, creating more than 5,600 jobs, investing a total of €300 million and furthermore investing €100,000 a year in projects for the locality every year.

The government also now has the obligation to invest in Smart City and AUM through infrastructural investment. “Why not? Isn’t it our obligation to facilitate such an investment in our country? It will only be done to the benefit of everyone, Malta, its people and Smart City and AUM.

 

‘Government protecting personal interests, not needs of the public’ – Bernard Grech

Opposition Leader Bernard Grech critized what Abela had to say about the land in Żonqor.

Grech argued that the government and the Prime Minister have, once again, chosen to favour an outsider (Sadeen group), “while also protecting his interests, those of his friends and those who came before him, rather than focus on prioritising the interests of the Maltese people.”

“The so-called facts that the Prime Minister stated are not the case, and it is useless to try paint a beautiful picture because the issue related to the land of Żonqor was and remains an intentional blunder,” Grech said.

He added that the Nationalist Party realised a long time ago that the land in Żonqor should never have been taken away from the Maltese and Gozitan people.

“Today, the government is proving that the Nationalist Party was right all along,” Grech said.

He highlighted that the government tried to sell a dream, but in reality it gave this country a nightmare.

Grech cited Abela where he said that the government has a contractual obligation. Consequently, Grech asked: “Are there are any other ties that we don’t know about? Why are you obliged to favour Sadeen?”.

He also claimed that the government seems to feel that just because it won the general election, it can do whatever it chooses. However, this is not the case.

As a result of all this, the Opposition will vote against the resolution as it does not want to be a part of the work that the government is carrying out.