Prime Minister Robert Abela said on Monday evening that MIDI Consortium must accept that it will not make any profit from Manoel Island, having already profited "over and above" from its project at Tigné Point.

Speaking to journalists outside Parliament, Abela said the government is open to consulting with MIDI to find a solution, but the outcome must serve the public interest.

“I have to find a solution to a saga that has lasted for 25 years, to a concession which was gifted with a bow to developers,” he said.

Abela said that MIDI’s company announcement on Sunday evening in which it said it was committed to finding a solution for Manoel Island together with government, was issued on their own accord, and there was no consultation with government.

Abela said the government believes the dream of turning Manoel Island into a national park remains achievable, despite the legal complexity of the existing concession.

“There may be breaches of contractual obligations. The concession states that development should have been substantially complete by March 2023. There is an extension of three years, with penalties, up to March 2026, but the contract specifies that by then, the project must be 85% complete. I believe that is physically impossible,” Abela said.

He said that this alone may amount to a breach of contract, but there may be additional clauses that have also been breached. Clause 8.1.4, in particular, appears to have been violated, Abela added.

“If no fair solution is found at the discussion table, then the government will proceed with steps to cancel and nullify the concession,” Abela warned.

Abela said the government is mindful of the 5,000 bondholders and shareholders, the majority of whom are pensioners.

“We must ensure they are not prejudiced. While the state may not have a legal obligation, I believe there is a moral obligation to protect their quality of life and the money they invested. They have seen little to no dividends so far, if the concession is rescinded, they may lose everything. That would be unjust,” Abela said.

However, Abela insisted that this does not mean the government will agree to pay compensation for breaches of contract.

“I exclude from the outset any scenario where the state pays hundreds of millions of euros to compensate for potential breaches of concession. MIDI has already profited excessively from Tigné Point, what they built went far beyond what was approved in the original development brief,” Abela said.

Abela said the public tender issued before 2000 had very different parameters for both Tigné Point and Manoel Island.

“The final development bears no resemblance to what had been approved. MIDI owes many explanations,” he said.

He described the Tigné Point project as a “prime example of unsustainable development,” saying that MIDI had already benefited far too much from the original concession.

Abela said the government is committed to ensuring Manoel Island becomes a green, open space for the community.

“The consortium must understand that the people deserve a green open lung,” he said.

He said that MIDI has already been granted approval for 590,000 square metres of built-up space. “Look at property prices in Gżira today and you will understand the kind of money we are talking about. The government will not be footing that bill to compensate a more than one potential concession breach,” Abela said.

“Everyone must come to the table to find a fair solution that protects bondholders and shareholders without placing a burden on taxpayers,” Abela said.

“If we immediately exclude options from the discussion, I would be compromising the discussion. But I exclude one thing completely: the idea that the state pays millions for breaches of concession.”

Asked if the government would pursue the matter in court, Abela warned that a court battle would delay the national park by up to two decades.

“A case like this could take 8 to 10 years to resolve. That means the park we want for the Maltese and Gozitan people might only materialise in 20 years. One must consider whether it's better to explore an out-of-court settlement, provided no exorbitant sums are requested,” Abela said.

He said that MIDI must understand they cannot make money from Manoel Island.

“They already made their profit from the other side. If there are some minor expenses or restoration costs that need to be covered, those can be considered, but seeking profit from this concession is a path I, as the person managing public funds, cannot accept,” Abela said.