MIDI plc “had no option” but to accept the government’s €43 million deal to rescind its concession over Manoel Island and Fort Tigné, according to CEO Mark Portelli.

In a piece published in the Times of Malta, Portelli said the agreed amount falls “significantly short” of the company’s total investment in the sites, arguing that the reimbursement does not reflect the full value of works carried out over the years.

The agreement, which would see the government regain control of Manoel Island and Fort Tigné, is expected to result in a net payment of around €43 million to MIDI after VAT adjustments.

Portelli described the decision to accept the deal as “pragmatic”, but said the company had effectively been placed in a difficult position following the government’s move to initiate judicial proceedings aimed at rescinding the original concession signed in 2000.

According to the CEO, these proceedings risked undermining the value of assets linked to the group’s financial obligations, including properties at Tigné Point used as security for creditors and bondholders.

MIDI is due to repay a €50 million bond in July 2026.

“In the circumstances, the company was left with no option other than to accept significantly less than it was rightfully due,” Portelli said.

He also rejected claims that the company had defaulted on its obligations under the concession, maintaining a position it has held since the future of the project came into question.

Portelli further pushed back against suggestions that public funds were being used to ease financial pressure on the company, describing such claims as “false and misleading”.

The deal follows months of negotiations between MIDI and the government. According to Owen Bonnici, the initial compensation request — which stood at €84 million — was gradually reduced to the final agreed figure.

The government’s calculation includes reimbursement of 80% of the concession premium paid for Manoel Island, as well as partial coverage of development-related expenses, including restoration works and operational costs.

Additional adjustments were made to account for depreciation and other factors, resulting in a total reimbursement of €47.3 million, or approximately €42.7 million net of VAT.

The agreement was approved in parliament last week but remains subject to shareholder approval. MIDI shareholders are expected to vote on the deal at an extraordinary general meeting scheduled for 28 April.