The government has filed legal proceedings against the MIDI consortium over the Manoel Island concession.
In a statement on Tuesday afternoon, the government said that it had kickstarted the legal process in order to “defend the people’s position” on Manoel Island.
Through a judicial letter, the government said that the consortium was in breach of the concession granted to it on 15 June 2000, which granted them a 99-year emphyteusis over land and buildings in Tigne Point, Sliema, and Manoel Island in Gzira.
In the letter, the government noted a clause within the concession which stipulated that the development had to be “substantially” complete by 31 March 2023.
“In consequence of the fact that you failed to adhere yourself to this contractual obligation, penalties due from you came into force in terms of the same contractual clause,” the government said, as it said that the consortium must now pay those penalties with the relative interest, and without prejudice to ulterior penalties that can be imposed by the same contract.
The State also noted that clause 8.1.4 of the agreement stipulates that if the delay to the works being substantially complete extends more than three years from 31 March 2023, then the government has the right to rescind the concession in its entirety.
It said that it intended to exercise all the rights that emerged from the concession and move towards the rescinding of the entirety of the concession, “particularly as it clearly results that today you are not in a position to adhere yourselves to your contractual obligations until that date.”
The State said that it was making it clear that this three-year period will not be extended.
The letter continued by noting that there were several other points where MIDI did not observe the contract.
The judicial letter was signed by State Advocate Chris Soler.
In its statement, the government said that “this is the first step which reflects Prime Minister Robert Abela’s public commitment so that Manoel Island is given back to the people in the interest and good of the Maltese and Gozitan people.”