Government will not extend MIDI's deadline for Manoel Island construction, files judicial protest

Updated at 7pm with MIDI plc announcement

Government has filed a judicial protest against MIDI plc, claiming that the company has not fulfilled its contractual obligations in relation to the Manoel Island concession.

The government's judicial protest, filed on Tuesday, states that MIDI must pay its penalties and that government is not going to extend the timeframe by when the company is obliged to have substantially completed the project. The deadline for substantial completion is March 2026.

“Government sees this as the first step that reflects the public commitment given by Prime Minister Robert Abela for Manoel Island to be given back to the people,” a government statement said.

On Monday, Abela told MaltaToday that he did not rule out an out-of-court settlement with MIDI just one day after the company stated that it is comimtted to finding a solution for Manoel Island. 

READ ALSO | Manoel Island: How Abela and Grech wavered under pressure

Calls for the concession's withdrawal and Manoel Island's transformation into a national park gained momentum after more than 29,000 people signed a petition to this effect. 

Prime Minister Robert Abela and Opposition Leader Bernard Grech initially poured cold water on the idea of turning Manoel Island into a park but later they both expressed a sudden shift an attitude in favour of the proposal.

MIDI denies it is in breach of contract

Meanwhile, in a company announcement on Tuesday evening, MIDI plc rejected "in no uncertain terms" allegations it was in breach of the concession agreement. 

"The company maintains 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 announcement reads.

The company said 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, the company reiterated its position that it remains committed to finding a solution with government in order to return Manoel Island to public ownership while safeguarding the company’s rights.