MIDI plc has announced that it has commenced preliminary discussions with the Government with a view to arriving at an out-of-court settlement in respect to the alleged breaches of the concession it holds over Tigné Point and Manoel Island.
MIDI made the announcement in a company update posted to the Malta Stock Exchange barely an hour before it is set to hold its annual general meeting with investors.
The company noted that “as has been publicly indicated by the Prime Minister, the initial meeting between both sides was cordial and there could be a reasonable basis for an amicable resolution.”
MIDI also stated that it has submitted a formal response to a judicial letter filed by the Government on 10th June, setting out its legal position and categorically refuting any allegation of breach of concession.
“While the company welcomes a constructive dialogue aimed at achieving an equitable settlement, it remains committed to defending its rights and interests,” it said.
According to the Government, MIDI has failed to meet its development obligations under the contract, and is now liable to pay contractual penalties.
In the letter the Government also stated that the company is clearly in no shape to honour its contractual obligations.
The Government emphasised that it has no intention of extending project deadlines any further, specifying that unless works are “substantially completed” by March 2026, the Government has the right to cancel the concession.
However, MIDI has countered the Government's claims, arguing that the agreement grants an extension of at least 10 years, particularly because the full development permit for Manoel Island has yet to be issued. In its interpretation, this means the countdown for the completion deadline remains suspended.
The issue was brought to the forefront of the national agenda through a campaign led by citizens and activists, which launched a parliamentary petition that collected over 29,000 signatures. It received the backing of several personalities, politicians and political parties without a seat in Parliament. Although the initial reaction to the campaign by the two main parties was lukewarm, both soon radically altered their position in the face of public pressure.
