Midi - no negotiations underway on Manoel Island 'compensation'

Midi plc, the developers of Tigné Point, have issued a company statement denying having held any discussions with government on divesting itself of the Manoel Island project and that the development remains on course.

Midi said it was not negotiating nor discussing with government or any other party in respect of the Midi project itself other than the usual consultations with agencies, such as MEPA, on purely operational matters.

The company was referring to public speculation fuelled by an interview in The Times with Midi chairman Albert Mizzi, who in reply to a campaign from various quarters that Manoel Island should be spared from development, reminded readers that it was government who had originally decided to develop both Tigné Point and Manoel Island.

Mizzi said that if Government now preferred to leave Manoel Island free of construction, then it would need to compensate the successful bidder of that tender.

"The statement speaks for itself and is both logical and fair. However, since Mr Mizzi's words are being misconstrued, we wish to clarify his statement further," Midi said.

Midi won the 1992 public tender to develop both Tigné Point and Manoel Island against €100 million in premiums to the state and other infrastructural obligations.

"The essence of Mr. Mizzi's comment was simply to point out that contracts come with both rights and obligations and Midi can hardly be expected to give up its 'right' to develop the approved area on Manoel Island without being reimbursed for its onerous obligations and without being granted fair and adequate compensation for what it would forego," the company said.

Midi added that it would be inconceivable to propose otherwise. "Both for the original investors as well as the over 700 public shareholders who invested in 2010 pursuant to a prospectus outlining the right to develop Manoel Island."

Midi has only recently engaged an international architectural practice to review the master plan for the village and the public zones within the project.

But the company said that if there is to be a public debate on the subject then it should be conducted in good faith, "with all interests declared, and not based on unfounded and potentially libellous speculation and suppositions about Midi's intentions and position."

Midi said 95% of the 280 properties so far built on Tigné Point have all been sold and delivered to their new owners, and all of the shops at the The Point shopping mall have been successfully rented out.

The company also said that CEO Ben Muscat, who resigned days after the Times interview with Mizzi, had given "twelve years of uninterrupted service" and that resigned on good terms and for personal reasons. "Any speculation in this respect does not do justice to him."

The Midi board will be approving its 2011 financial statements at the end of the month.