Abela refuses to say if government will approve Fort Tigné transfer

Prime Minister Robert Abela is refusing to state whether he will grant permission to MIDI plc to transfer the Fort Tigné concession to construction magnate Joseph Portelli, who intends to develop a hotel.

The property forms part of the land granted to MIDI by the government in 2000 on a temporary emphyteusis for 99 years.

Portelli and MIDI plc are legally required to obtain government approval for the cash-strapped consortium to conclude the transfer of the Knights-era fort to Portelli at a bargain price of just €2.5 million – the cost of one or two apartments in Tigne.

Despite growing internal pressure within government to halt the deal, Abela has so far refused to publicly oppose it.

The Office of the Prime Minister did not answer The Shift’s questions on the government’s position on this deal or whether it intended to approve it, which is a requirement for the agreement to go ahead.

It appears that several Cabinet members are opposed to the transfer, while Malta’s UNESCO representative is attempting to exert pressure.

Malta’s ambassador to the organisation, Gozitan priest Joseph Vella Gauci, has expressed concern that the transfer would effectively end Malta’s hopes of securing World Heritage status for its unique fortifications, sources have told The Shift. Vella Gauci has made no public statement on the matter.

Malta is expected to submit its final dossier next month as part of its bid for the prestigious recognition of its Knights-era fortifications.

In a surprise move last week, MIDI plc announced that it had entered into a promise of sale agreement with J. Portelli Projects to transfer the remaining concession on the fort, approximately 75 years, to the Gozitan developer.

MIDI is currently facing financial difficulties and is unable to repay an outstanding €50 million bond maturing next year without fresh capital.

The Shift asked MIDI to reveal the architects who had evaluated the fort’s worth, but the company did not reply.

MIDI and the government are currently locked in negotiations over the future of Manoel Island, the second component of the 2000 concession, which MIDI failed to develop.

The government has already stated that it intends to reclaim the island and convert it into a national park, citing MIDI’s breach of contract. While discussions are ongoing regarding the compensation being claimed by MIDI for expenses allegedly incurred on Manoel Island, no agreement has yet been reached.

The dispute has already reached the courts, with both the government and MIDI filing judicial protests while maintaining their respective positions. According to MIDI, it is not in breach of the original contract.

MIDI is also facing compensation claims from Anthony Camilleri, known as Tal-Franċiż, who had signed a memorandum of understanding several years ago to take over the Manoel Island development.