Letter of Commitment signed for project

by Anthony Manduca

The government and the MIDI Consortium yesterday signed a Letter of Commitment over the Manoel Island Tigne project. Environment Minister Francis Zammit Dimech signed for the government while MIDI Consortium chairman Albert Mizzi signed for the private sector. Consequently MIDI presented the government with a bid bond of Lm1 million. The final contract between the government and the MIDI Consortium will be signed after it has been discussed and approved by the Parliament and the relevant parliamentary committee. The contract will enable Manoel Island to be transferred to a residential, commercial, tourist and cultural centre.

Dr Francis Zammit Dimech said yesterday that he was very satisfied that the negotiations had ended in success and he emphasised that this project will help boost the country's economy. He said that the Consortium was duty bound to give the government Lm40 million, consisting of Lm25.6 million in grants, Lm9 million in infrastructural works and Lm5.5 million in restoration work. Besides this, the Consortium will pay an annual rent of Lm480,000 for the first 25 years, which increases to Lm840,000 in the 26th year and which further increases to Lm960,000 in the 51st year. MIDI will be acquiring a 99 year lease on Manoel Island (excluding the yacht repair yard) and on Tigne Point.