Gonzi's volte-face on White Rocks real estate deal

The Prime Minister has accepted to allow 300 residential units at White Rocks after having denied this same opportunity to the Maltese tenderers on the White Rocks development brief

27 June 2010, 12:00am
by Matthew Vella

1 min read

MaltaToday reports today how prime minister Lawrence Gonzi had "categorically" denied a Maltese consortium to develop real estate on the holiday complex earmarked for the White Rocks area, which is now being accorded to the British consortium that will construct the €200 million White Rocks sports and leisure village.

The Maltese businessmen were tenderers on the 1995 White Rocks development brief. They had spent five years negotiating the specifics of their holiday complex between 1998 and 2003 with the tourism ministry. In 2003 they asked to be allowed to develop real estate in the holiday complex area, to compensate for the downward trend in travel after 9/11 and the SARS epidemic. Their request was refused by then prime minister Eddie Fenech Adami.

Gonzi later refused this request in 2004, when he met the Maltese consortium. But now, the British consortium of realtors will be allowed 300 residential units, considered 'necessary' to render the project feasible.

More of this story in today's MaltaToday on Sunday

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

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Anthony Abela •

I read the article in the Sunday paper. It says that “the group (the Maltese consortium) backed up their request for real estate by proposing to government a premium above the group’s original bid” If it was a good premium why are we kept in the dark of how much this premium was? In the absence of this, I assume that it was nothing compared to what the country and us citizens of Malta will be getting in return with the White Rocks Sports and Leisure Village i.e. €200 million in foreign direct investment, 800 jobs, state of the art sports facilities hosting 40 different sport disciplines (owned by Government but built and maintained at the investors cost), a family park (owned by Government but built and maintained at the investors cost), sports tourism, international sports events and a sports college. To top it all, it seems that the former consortium was getting a sale of land whilst today’s deal is through a lease, i.e. no sale of land!

Mario Bonnici •

This article, together with the one in the Sunday paper confirm that today's deal on White Rocks is so much better than any previous deal. The then Maltese consortium was asking for residential units after winning a bid which never mentioned such units. More than that, what would the country have got in return for those units? Nothing. With today's deal the government leases – not sells – the land, for a definite period of time (cens). In return the private company will be obliged to build the whole complex and to maintain it at its own expense – the estimated initial cost will not be less than €200 million. Add to this the running costs which have to be borne by the private company. The land will still belong to us because it is not being sold – except for the area where the 300 apartments are going to be built. The country will also get a family park, sports tourism and a sports college.

•

That’s where a tender process got us. 15 years later we are still faced with derelict land. Today’s deal will be scrutinized by Parliament as was the case with Smart City, so I concur with Frank Portelli (http://www.maltatoday.com.mt/blogs/frank-portelli/white-rocks-radic-just-do-it), √ Just Do It. We sports persons need these facilities and the country needs the investment.