White Rocks: Third time lucky?

Back in 1999 a public tender was issued for the development of the White Rocks based on the parameters set by a stringent development brief that restricted development to the site occupied by the abandoned complex.

The development brief issued in 1995 excluded any real estate development in the area. Basically, what the authorities had in mind was an “upmarket tourism project” set on the already developed site.

The site identified in the 1995 brief consisted of 36.9 hectares, subdivided into three zones.

Zone 1, having an area of 38 per cent of the total, consists of the existing holiday complex and its facilities. Zone 2 (39 per cent of the area) consists of a mixed garigue and rocky coastline. Zone 3 (23 per cent of the area) consists of agricultural land.

The 1995 brief stipulated that only Zone 1 was to be released for development, identifying one exception: an underground structure in Zone 2 which was to be rehabilitated and in respect of which no extension was to be considered of its footprint.

Costa San Andrea Ltd, a consortium made up of Maltese businessmen and Spanish hotel operator Sol Melia, was chosen as the preferred bidder by the government before the 2003 election.

The consortium was also in possession of a sanction letter from Bank of Valletta to cover the investment of about €40 million. A planning application was presented to the Malta Environment and Planning Authority (MEPA).

But the project was put on the backburner until the 2003 election.

Paul Abela, a director of Costa San Andrea Ltd, claims that in 2004 the Gonzi administration was adamantly against any real estate development on the site.

Costa San Andrea were insisting on a change in plans to include an element of real estate, but the Fenech Adami administration stood firm against changing the parameters after the preferred bidder was chosen.

In an article penned in July 2010, Abela wrote that the consortium’s attempt to include real estate on this site was resisted by both Eddie Fenech Adami and Lawrance Gonzi.

“When we were insisting on real estate to be part of the project, Dr Fenech Adami had told us he preferred to issue another public call for tenders but giving us the right of first refusal. After Dr Gonzi succeeded him, the new Prime Minister told us he did not agree with the right of first refusal and insisted he was against real estate development at White Rocks.”

But in 2010 Gonzi changed tack, accepting the idea of real estate as a way of financing the development of a sports complex. Moreover negotiations were carried out with a UK consortium in the absence of any public tender or call for expressions of interest.

A sacrifice for sports?

At a ceremony in Castille, UK investors presented their plans to build a sports complex and 300 apartments.

The investment was quantified at €200 million and was hyped as one benefiting sports organisations. 

Similarly to the Smart City model, the real estate component was to finance the project’s added value to the country. While Smart City was hyped for its job creating potential, the White Rocks project was hyped for its advantages to local sports.

MEPA also started changing the 1995 development brief to accommodate the new project, but these changes were never approved.

The parliamentary secretary for sports, Clyde Puli had gone on record stating that without the real estate component, the project was not feasible.

“That is why we had to compensate with the units. The financial model would not work without this and the land is the price the government was ready to sacrifice for sports.”

However in the subsequent years, talks between the government and the investors failed to yield any tangible results.

During a TV debate on the eve of the 2013 election, Nationalist Party deputy leader Simon Busuttil admitted the project was not implemented because it “did not offer enough benefits for the country”.

On his part former Prime Minister Lawrence Gonzi insisted that the government was not prepared to go ahead with the agreement at all costs.

While this may suggest that the Gonzi administration was not willing to accommodate developers at any cost, the hype given to the project in 2010 contributed to the perception that the government was unable to deliver on its own promises. The White Rocks debacle came to symbolise the ineffectiveness of the Gonzi administration in getting things moving.

Not surprisingly the new Labour government has moved on to deliver where the previous government had failed.

But this comes with one significant difference. Unlike the 1999 public tender the new call for expressions of interest, which is probably directed at foreign investors, does not exclude real estate development. Moreover the real estate component is not even seen as a means to an end as was the case with the sports complex proposal, but an end in itself. 

The government is targeting “a village of luxury units” that will be fully developed and funded by the private sector. “We want a lifestyle community village where White Rocks is transformed into a luxurious facility, complemented with services and recreational programmes for all ages,” Economy Minister Chris Cardona said.

“After years of empty promises on White Rocks, this government is committed to see this project through. It is a prime site which has been left abandoned for years. This project will start during this legislature,” the minister said.

The Natura 2000 obstacle

One obstacle for the Gonzi plan to turn White Rocks into a sports village was how to fit in 300 units and the promised sports facilities without encroaching on the surrounding garigue and agricultural land. One major complication was the inclusion of a tract of kartsland between the AFM shooting range and the abandoned White Rocks complex. 

The area is part of a Special Area of Conservation (SAC), which enjoys grade 3 protection.  This level of conservation excludes residential and commercial development but allows minor interventions aimed at protecting the SAC.

Back in 2001 MEPA had rejected the development of a golf course which included this tract of land.

Just days after the project was launched in 2010 the government was faced by questions from MaltaToday on the compatibility of the project with the Natura 2000 designation of part of the site. MaltaToday also revealed that the site area proposed by the government also coincided with a cemetery extension in Pembroke.

The government’s reaction was to ask MEPA to devise a new plan for the area but no changes were ever made. This means that the 1995 development brief remains the only valid planning document regulating development in this area. Neither does the local plan approved in 2006 refer to any new development on the White Rocks site.

Artist's impression of the proposed White Rocks project.

The project proposed by the current government may even extend to other protected areas as the site area involved is eight hectares larger than that proposed in 1999. 

The government has so far failed to publish a site map delineating the confines of the proposed site.

The site area of the current project amounts to 449,885 square metres (45 hectares) of which only 135,660 square metres are build up. This does not mean that the whole space will be built up.

Chris Cardona has acknowledged that the 65-year-concession includes a Natura 2000 site. Asked what heights will be permitted, he replied that regulations will be followed and adhered to. 

Cardona claims that the project will enhance the environment, adding that preference is being shown to hotels with suites instead of rooms, huge gardens with fountains and a tranquil ambience, an environmental vision worthy of a Dubai enthusiast. Not surprisingly, when asked whether the project fits in with the government’s Dubai vision, Cardona replied in the affirmative, referring to “historical” similarities between Malta and the rich emirate.

Contrary to what happened in 1999 when the call for tenders was based on a development brief approved in 1995, no clear planning parameters were issued to guide development on this zone before the call for expressions of interest was issued this week. This suggests that future planning policies to guide development in this area will be tailor made to accommodate the chosen bidder.