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Project overview
Alec A. Mizzi, CEO of the Alf Mizzi & Sons Group and
director of Midi plc, talks to Blanche Gatt about progress on
the Manoel Island and Tigne Point project
Almost 10 years after negotiations over the Manoel Island and
Tigne Point site began, the MIDI Consortium finally declared
the project open last December. Despite the years of debate
and controversy, it was only a year ago, in June 2000, that
the formal agreement ceding the land to the consortium was signed.
But, as the old saying goes, good things come to those who wait
– and the MIDI Consortium has certainly done its fair share
of waiting.
Composed of 11 shareholders, the Consortium has committed to
a project that encompasses 44 hectares of land and will cost
Lm140m to develop. With a target date of 12 years for total
completion, the entire project, that will cover 34 per cent
of Tigne Point and 80 per cent of Manoel Island, as well as
a 350- berth marine and a breakwater, will eventually grow to
include 940 residential spaces, 10,100 square metres of office
space, retail outlets, catering facilities, a casino, a 300-room
five-star hotel and 17,238 sq. metres of sports and leisure
facilities, as well as over 3,000 underground parking spaces.
As the first, preparatory phases of the project get underway,
I went to speak to Alec Mizzi, CEO of the Alf Mizzi & Sons
Group, and a member of the consortium, to find out how the shareholders
are feeling about the progress on their massive
investment.
The long drawn out negotiations with government spanned three
different legislatures, and involved a constantly-changing stream
of ministers, officials and negotiators on the government side.
“I think it was 1992 when the whole thing started,”
Alec said. “The negotiations were long and complicated
– especially because first we were dealing with a Nationalist
government, than a Labour one, and then Nationalist again. So
until agreement was reached a year ago on 15 June 2000, it was
a pretty long road to travel. Fortunately we always dealt with
positive negotiators and are pleased to note that all successive
governments supported the project.”
A strong commitment to the project was essential to maintain
the momentum despite the obstacles. “This project was different
– on such a large scale – that it was very attractive
to us,” explained Alec. “We always believed there
was an excellent business opportunity in the project, but also
that it was the kind of endeavour that would actually make a
difference. So it was worth pursuing. And in fact, through the
negotiations, for the last six to seven years, we already had
whole teams of people, including architects and designers working
on the outline plans of the project, as well as financial and
legal consultants.”
However, despite the fact that work has started at last, and
the two architects, Alex Torpiano and Conrad Buhagiar and their
teams, are now busily filling in the outline drawing with detail
that must all still be passed by the Planning Author-ity, there
also remain a few outstanding problems. “Part of our contract
is to carry out infrastructural work like improving the access
to Manoel Island, for example,” Alec said. “The new
road will be built at government expense, but with us as the
project managers. However, it has not yet been dec-ided how
exactly to go about it. There are a number of options, one of
which involves the demolition of a number of houses, but this
has not been decided yet.”
Alf Mizzi & Sons Group is one of the three largest shareholders
in the consortium, with 15 per cent of the total shares. As
they watched the years fritter away into interminable discussion
and counter discussion, how did they feel about this significant
investment?
“Well, there’s no doubt this was nine years of wasted
time,” replied Alec. “It started and stopped,
started and stopped, over and over again. We originally thought
the negotiations would be concluded within a year or two, but
it dragged on so long. Throughout this time, we considered pulling
out several times. There were moments when we were very frustrated
and thought that’s it, we’ve had enough. But we had
already made a substantial investment of over a million liri
before we even signed the agreement, and we had even carried
out numerous impact assessment studies for the Planning Authority,
so pulling out would have meant throwing all that work away.
And, fundamentally, we always believed in the project, and we
always had a broad agreement on the fact that it was an attractive
project, despite the frustrations.”
The frustrations, as we all remember included the problem of
what to do with current occupants of the site. While a number
of the tenants on Manoel Island and Tigne Point were offered
alternatives which they accepted with no fuss, a few of the
residents at Tigne Point caused an uncomfortable sticking point.
“Of course,” explained Alec, “we have no relationship
with any of these people. Their relationship is with government.
But there is no doubt that this was one of the reasons for the
delays that beset us, both in Tigne and Manoel Island. However
government knew we were not prepared to take on the project
without vacant possession of the site, so this had to be sorted
out. Arrangements have now been settled, however, some of them
with our help. The Sliema football pitch is going to be rebuilt
above the shopping centre, as is the Gzira pitch. For the nine
outstanding residents at Tigne Point, we shall be incorporating
specially built maisonettes for them within the development.
This was a compromise – not ideal, but at least allowed
us to move on.”
Was compromise the only sort of help the consortium offered?
“We didn’t pay any money to anybody to get vacant
possession,” said Alec. “But we helped in that we
acceded to some of the requests, even if they were inconvenient
to us. Basically we couldn’t do otherwise, or the project
would have been stalled even longer than it was.”
In fact, the massive project is going to transform the two areas
that have for years lain derelict and abandoned to the twin
ravages of human vandalism and the elements. Incorporating the
restoration of valuable historical buildings such as Fort Manoel
and Fort Tigne, Lazzaretto Hospital and Tigne Barracks, the
work carried out is going to be a delicate process which will
involve careful supervision from specialist conservationists
like Fondazzjoni Wirt Artna.
“Part of our obligations are to restore the Forts to their
former pristine glory, while Tigne Barracks will be dismantled
and then rebuilt. This is one of the reasons we have
Conrad Buhagiar on board – he is widely recognised as an
expert in the field of conservationist architecture. Besides,
the architects will be taking all the necessary advice –
for example, when we dismantled the Barracks, Fondazzjoni Wirt
Artna had people observing everything we did and all works will
continue to be monitored by them.”
So, after nine long years waiting to begin, how soon will the
project be completed? “The various phases on both areas
of the project are designed to balance restoration work with
the more commercial sites. The first part of Tigne Point, facing
Valletta, should be ready by 2004 – 2005, while Manoel
Island is planned for two phases of five years each. The whole
project should be completed within 12 years. However, in the
current phase we are ahead of schedule, and now that all the
problems have been sorted out, we intend to continue at this
pace. For example, during the excavation work, a truckload of
rock is removed every four minutes. These are loaded onto barges
and taken far out to sea to be deposited at a site specified
by the Maritime Authority.”
With three contractors, Polidano Brothers, Vassallo Builders
and Gatt Brothers, as shareholders, could this cause problems
in the issuing of tenders? “First of all, the three contractors
own only 18 per cent of the shares between then, so they are
not in a position to influence the outcome of tenders,”
replied Alec. “And these shareholders don’t have any
advantages over outside contractors for the work. This was made
very clear before the project started. All tenders are awarded
on merit, and, of course, we want to have as competitive a tendering
situation as possible. Of the two contracts awarded so far,
only one was won by a consortium member, but this was totally
on merit, and this is the way we will proceed.”
The Manoel Island and Tigne Point project has attracted a fair
amount of controversy during the long years the consortium cooled
its heels on the sidelines. Now,
however, the green light has flashed permission for the project
to commence, and many are applauding
the fact that the long aband-
oned, derelict buildings
that form so
valuable a part of Malta’s heritage are finally going to
be given the attention they deserve. In the meantime, the patient
investors are now able to give vent to their enthusiasm. “This
project is so different because we are in control of the whole
area, and have the possibility to implement a total solution
to improve and upgrade the sites,” said Alec in conclusion.
“The great attraction is that it is an all-encompassing
project in which the whole environment is dependent on the developer
too.
“So far, Malta has only really had Valletta as a totally
planned area, but this is going to be an entire area
of well-maintained, up-market property, which can be enjoyed
by all residents in the surrounding areas, and accessible to
everyone.”
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