MIDI ready to discuss returning Manoel Island to government in partial victory for NGOs

MIDI plc said on Sunday night it is “committed to find a solution for Manoel Island to revert to government”, marking a dramatic shift in position.

The statement came almost a month after MIDI CEO Mark Portelli told MaltaToday that giving up Manoel Island is “not a discussion” the company can have, and hours after Prime Minister Robert Abela pledged to do all he can to return Manoel Island to public ownership.

In its announcement, MIDI plc acknowledged recent public statements by government, which it said “amplified calls for a review of the Manoel Island project’s future”.

“While MIDI asserts that it remains fully compliant with its obligations under the existing Deed of Emphyteusis, the company nonetheless confirms that it is prepared to engage in constructive discussions with the government, guided by a commitment to protect public interest and the company’s shareholders and bondholders,” the company said.

MIDI added that it “recognises” government’s “desire to convert Manoel Island into a national park”, calling this a shift in policy direction.

The company also acknowledged that today’s reality is different from that prevailing 25 years ago when it was granted a 99-year concession to develop Manoel Island and Tigné Point. Development on Tigné is almost complete but that on Manoel Island has not yet started, although the company does have an approved master plan.

The statement said that in light of the new public policy direction by government it was “open to reaching an agreement that reflects current national priorities which are clearly different from those prevailing when the concession was granted”.

“MIDI is committed to continue to act in good faith to find a solution in order to implement government’s stated objective for Manoel Island to revert to government,” the statement concluded, adding it will keep the market informed of any material developments in a timely and transparent manner.

READ the MIDI statement below: 

The company made no mention in its statement of the non-binding memorandum of understanding it has with AC Enterprises Ltd, owned by developer Anton Camilleri, known as il-Franċiż, to explore the possibility of a joint venture for the development of Manoel Island.

Questions sent to Camilleri last week by MaltaToday, asking whether he was still interested in furthering the joint venture initiative with MIDI in view of the growing public pressure to have the island returned to public ownership, remained unanswered.

Partial victory for NGOs

But the dramatic shift in the company’s position is also a partial victory for Moviment Graffitti and Flimkien Għal Ambjent Aħjar after they successfully steered a petition to have Manoel Island returned to the public and turned into a national park.

The petition garnered 29,000 signatures and found the support of former prime ministers Alfred Sant and Lawrence Gonzi; former Labour minister Evarist Bartolo, the current Labour Party President Alex Sciberras and backbencher Edward Zammit Lewis; and several Nationalist MPs.

After initially wavering on the activists’ call, Opposition Leader Bernard Grech said every effort must be done to explore ways how the island could be returned to public ownership. He called for a review of the contract by the NAO before a parliamentary debate can take place.

Prime Minister Robert Abela initially refuted the petitioners’ call, insisting there was a contract in place and his government was not willing to pay millions of euros to MIDI investors. Nonetheless, days later Abela did a U-turn and hit out at MIDI investors, instructing Alex Sciberras and Edward Zammit Lewis to analyse the contract for any possible breaches.

On Sunday, Abela reiterated his government’s commitment to do all it can to see Manoel Island return back to public ownership, while protecting the investment of MIDI’s small shareholders and bondholders.

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