MIDI plc, the company behind the controversial Manoel Island redevelopment, has pledged to "vigorously defend its position" following a judicial letter filed by the Government of Malta, the Lands Authority, and the Malta Transport Authority.

Yesterday, the Government has accused MIDI of breaching key terms of the 99-year emphyteutic deed signed in June 2000, alleging that the company failed to meet its contractual development obligations. As a result, MIDI is now facing potential contractual penalties.

The judicial letter also made it clear that the Government does not intend to grant any further deadline extensions. It warned that unless the redevelopment is “substantially completed” by March 2026, the Government reserves the right to terminate the concession.

In a prompt response issued just hours after the letter was made public, MIDI firmly rejected the allegations, stating that “there is no valid legal basis for rescission nor the imposition of penalties.”

The company also argued that the deed includes specific safeguards that extend the deadline for completing the development. According to MIDI, 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 company will vigorously defend its position and will be formally responding to the judicial letter taking all actions necessary to ensure its rights are fully protected,” the statement continued.

MIDI also referred to a statement issued recently, saying that it still remains “committed to find a solution for Manoel Island to revert to Government.”