Government in advanced stages of terminating Manoel Island concession, Abela announces

The government is in advanced stages of terminating MIDI’s Manoel Island concession, the Prime Minister announced on Sunday. 

"We are in an intensive process of dialogue and technical exercises to evaluate what investments have been made in the historic buildings," Prime Minister Robert Abela said during a budget discussion in Żejtun. "The termination of the concession will naturally involve financial considerations."

Speaking to supporters on Sunday, the PM stated the consortium behind the project has given government a “clear commitment” the development will not be proceeding. 

Abela also announced government will be launching a public consultation on turning the White Rocks area into a park as announced by him during his Budget 2026 speech. 

White Rocks, which had tenders issued for development by previous governments extending far beyond the current committed footprint, will also become a national park. Abela emphasised that the government saved large areas of agricultural land by halting those plans. 

The Prime Minister stressed both projects would involve extensive public consultation, particularly with children and environmental groups.

"We want to hear from children how they see the White Rocks project," Abela said. "Let the children tell us what they want. We'll combine what the experts say with what NGOs tell us, what children tell us, and create projects as they should be."

The government is also advancing the Grand Harbour regeneration, with international firm Chapman Taylor developing a masterplan following community consultation.

Speaking on the budget, Abela said €9.3 billion delivers significant tax cuts alongside the environmental initiatives. 

"We promised €66 million in tax cuts in our manifesto, but delivered five times more at €300 million," Abela said. "These benefits will continue for the next 25 years." Students in their final two years of secondary school are also set to receive a €500 grant.

Speaking during the event, economist Stephanie Fabri noted Malta's economy is growing at over 4% compared to around 1% in Europe. “Our challenge is not just to grow, but to grow better," Fabri said. "We need to move from competing on volume to competing on value, with productivity as the key."

Speaking on Healthcare, Jan Chircop highlighted healthcare investments exceeding €1 billion annually, including robotics in surgery and a planned €300-bed intermediate care facility at St Vincent de Paul.

He highlighted that public-private partnerships have allowed for patient referrals to private hospitals have eliminated waiting times for procedures such as knee replacements. He also mentioned that three new regional mental health centres will bring care into the community, whilst a new psychiatric hospital will be built beside Mater Dei.