The MIDI consortium has said that the correct interpretation of the concession agreement concerning Manoel Island would be that the company has a 10-year extension in order to develop the island which activists want turned into a national park.

The consortium was responding to a government statement wherein the State announced that it had filed legal proceedings against MIDI over the Manoel Island concession.

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.

This was because the development had to be “substantially” completed by 31 March 2023, with an additional three-year grace period given should the works not be completed.  The government said that MIDI was clearly not in a position to adhere to the contract and said that it intends to exercise all of its rights in order for the concession to be rescinded.

However MIDI rejected the allegations “in no uncertain terms” and said that “there is no valid legal basis for rescission nor the imposition of penalties.”

“The relevant deed contains specific safeguards extending the development’s completion date. The Company contends that a correct interpretation of the deed grants the Company an extension of at least 10 years and since the full development permit for Manoel Island has not to date been issued the time period for completion of the development remains, in terms of the deed, suspended,” the company said in an announcement issued through the Malta Stock Exchange.

MIDI said that it “will vigorously defend its position and will be formally responding to the judicial letter taking all actions necessary to ensure its rights are fully protected.”

Nevertheless, MIDI said that “it remains committed to finding a solution with Government in order to implement Government’s stated objective for Manoel Island whilst at the time safeguarding the Company’s rights.”

Prime Minister Robert Abela told journalists on Tuesday evening that he was set for a “very important” meeting with MIDI on Wednesday to discuss the concession – the first meeting between the government and the consortium.