MIDI plc has reached an in-principle agreement with the Government of Malta to partially rescind its long-standing concession over Manoel Island and Fort Tigné, in a deal expected to result in a net payment of around €43 million to the company.

The agreement would see the emphyteutical concession over Manoel Island and Fort Tigné terminated, while the concession over Tigné Point (excluding Fort Tigné) would remain in force.

Under the proposed terms, MIDI is set to receive a total reimbursement of €47.3 million, which after VAT adjustments is expected to amount to approximately €43 million.

Lovin Malta reported on Friday that talks had resulted in an agreement which needed to be approved by the board and the company’s shareholders. The agreement was confirmed by Robert Abela during a Facebook broadcast, on Monday where he said the sites would be “returned to the people”.

Culture and Lands Minister Owen Bonnici later confirmed that the government would pay around €43 million — just over half of the consortium’s total investment in the site — noting that MIDI had originally requested €78 million.

The agreement remains subject to several conditions, including the finalisation of contractual terms, approval by MIDI shareholders at an extraordinary general meeting, and endorsement by Malta’s Parliament.

The concession dates back to an emphyteutical deed signed in 2000, which granted MIDI development rights over Manoel Island and Tigné Point. While the Tigné Point project was completed, no major development materialised on Manoel Island beyond restoration works on Fort Manoel.

In recent years, the site has been at the centre of growing public pressure, with environmental NGOs calling for the concession to be rescinded and the island transformed into a national park. A petition supporting this proposal gathered more than 29,000 signatures.

The partial rescission would effectively return Manoel Island and Fort Tigné to government control, while allowing MIDI to retain its core development footprint at Tigné Point.