ANALYSIS | The land reclamation saga: A never-ending story

From Lawrence Gonzi’s 2005 proposal for artificial islands to Joseph Muscat’s 2013 call for expressions of interest; from an €11 million seabed study in 2019 to a cautious mention in Vision 2050, the idea of land reclamation has whetted the appetite of politicians for the past two decades.

Yet, despite repeated studies and political pledges, no concrete plans have ever materialised. The land reclamation that has taken place is primarily linked to Malta’s ports with the largest being the two terminals at the Freeport in Marsaxlokk Bay.

2005: Gonzi’s artificial island dream

It was then Prime Minister Lawrence Gonzi who, in June 2005, first floated the idea of building an artificial island off Malta’s coast. The proposal followed a preliminary study commissioned by the Malta Environment and Planning Authority (MEPA) and carried out by Danish consultants Carl Bro.

The study identified two potential sites: The coastline between Baħar iċ-Ċagħaq and Pembroke, and the northern Xgħajra coast near Ħaż-Żabbar.

These sites were then subject to further feasibility and environmental impact studies by Maltese firm ADI and British experts Scott Wilson. These were published in 2008. The €500,000 study concluded that land reclamation would only be economically viable if it was linked to real estate development.

The Baħar iċ-Ċagħaq site was ruled out due to ecological concerns despite being the most economically feasible. Meanwhile, the Xgħajra proposal carried an estimated cost of between €250 million and €439 million. The consultants concluded that only a Smart City-style development which includes vast tracts of real estate would recover such an investment.

Despite the initial enthusiasm, the Nationalist government quickly lost interest. Former Environment Minister Mario de Marco had later voiced caution, flagging environmental concerns amid growing interest in the idea from the Labour opposition.

2012–2013: Muscat picks up the baton

Fast forward to 2012 and then Opposition Leader Joseph Muscat revived the idea, presenting land reclamation as a way to ease development pressures on Malta’s limited landmass.

Muscat suggested the creation of yacht marinas through reclamation, arguing that demand was high and that such projects would generate wealth and employment.

The Labour Party’s 2013 electoral manifesto made a formal commitment to land reclamation, emphasising the need to respect environmental and planning standards.

After winning the election, Muscat’s government issued a call for expressions of interest (EOI) for land reclamation concessions in Maltese waters. The response was overwhelming: 21 projects from 17 local and foreign companies, proposing everything from floating villages to race tracks, marinas, boutique hotels, and even underground developments, were presented.

Though the government insisted it was under no obligation to implement all proposals, it promised to assess them based on innovation and environmental, economic, and social impacts. However, the list of bidders was never published.

One developer who did go public was Silvio Debono, owner of the Seabank Group, who revealed a €150 million bid involving real estate. Former Freeport CEO Aaron Farrugia also hinted at a possible reclamation extension near the Freeport, an idea which has now resurfaced in the Vision 2050 plan.

2016: Reclamation in the Paceville Masterplan

Land reclamation also found its way into the now-abandoned 2016 Paceville Masterplan, which proposed extending the Portomaso coastline into the sea. The plan included a high-rise development on reclaimed land – 38,700sq.m of built footprint – adjacent to a marine protected area rich in Posidonia meadows. Photomontages showed how the proposed tower would obscure views of the Dragonara Casino from Sliema, sparking public outcry. A similar proposal for a high-rise project on reclaimed land near the Jerma Hotel in Marsaskala in 2016 was also dropped after negative public reaction.

2019: ERA’s seabed study

In 2019, the government tasked the Environment and Resources Authority (ERA) with identifying feasible reclamation sites. A draft report based on an €11 million seabed study was later leaked to MaltaToday, identifying a broad arc from Portomaso to Xgħajra as suitable for large-scale reclamation. Other sites mentioned included Baħar iċ-Ċagħaq, Marsaxlokk, St Paul’s Bay, Mġarr Harbour in Gozo, and a spoil ground off Xgħajra already used for the dumping of construction waste.

The ERA was quick to stress that these locations were “indicative” and merely posed the least environmental problems. Even within the preferred arc, certain areas like the Grand Harbour were ruled out due to cultural heritage concerns. Notably, both Portomaso and Baħar iċ-Ċagħaq – considered among the most suitable areas – were home to vital Posidonia beds which oxygenate the Mediterranean Sea.

Despite then Environment Minister José Herrera declaring in 2019 that a decision on five or six sites was “imminent”, by late 2020 the ERA confirmed the analysis was still ongoing.

2021–2022: Repetitive budget mentions

In the 2021 budget, Finance Minister Clyde Caruana said consultations were underway with experts to explore projects that could enhance the environment and provide long-term value. This was repeated in 2022, with Caruana reiterating that land reclamation would be pursued only if it respected environmental sustainability.

Labour’s 2022 manifesto described land reclamation as “necessary in a small country with very limited territory”, doubling down on its earlier commitment. In May 2022, then Infrastructure Minister Aaron Farrugia told parliament that Malta would finally launch a land reclamation project within the legislature. “It will no longer remain a sentence in an electoral manifesto but will become reality,” Farrugia pledged.

Around the same time, ERA confirmed that its draft report had been submitted to government, with a cross-government consultation still ongoing.

2023–2024: Budget shrinks and enthusiasm wanes

Despite Farrugia’s earlier declarations, budget allocations in subsequent years told a different story. While €500,000 was earmarked for land reclamation studies in 2023, only €9,500 was spent. The 2024 budget allocated €100,000, and this year’s budget reduced that further to €10,000.

In an interview with LovinMalta, Finance Minister Caruana cooled expectations, describing land reclamation as “very expensive” and suggesting that it would require “a massive tower” to justify the investment – something he doubted the public would support. “I think the country has other interesting issues to look at before discussing things like this,” he said.  The argument had gone full circle with Caruana repeating the conclusions of studies carried out by the Gonzi administration in 2005.

2025: Vision 2050 revives the idea again

And yet, the idea resurfaced again in Malta’s Vision 2050 strategy. This long-term plan proposes that Malta “cautiously explore” land reclamation projects, provided they are backed by solid environmental and economic assessments and deliver “long-term public value”. A more modest proposal also foresees extending Freeport capacity through outward reclamation. Only time will tell whether the idea will take off the ground or whether this very article will be re-written some years down the line with a new entry stating that land reclamation has been revived once again.