After TMI story, government publishes Marsa race track MoU

The government yesterday published the Memorandum of Understanding regarding a concession agreement for the Marsa Race Track, following a story published in The Malta Independent on Sunday, which was followed up by a statement yesterday by the Nationalist Party.

The publication comes after Pio Valletta, one of the Marsa Race Track Ltd Consortium shareholders, said that they were not willing to issue the MoU because of confidentiality issues.

Asked whether or not he would be willing to release the MoU, Dr Valletta had told this newsroom that they are not willing to release it at the moment, as there is a confidentiality clause. “It has to be an agreed release. At this stage I don’t think that is the scope at the moment. I don’t think it will be a problem later.” He indicated that once negotiations on the concession agreement start, which will be soon, that would probably be the time that it will be released. Asked if he would have a problem releasing the MOU if the government has no objections, he said: “We would have no problem. There is no reason why anyone should have a problem, if both parties agree.”

But, within 36 hours of the publication of the story, the government and the consortium seem to have overcome their inhibitions, and published the MOU.

This newsroom, in the same article, also revealed that the majority shareholder in the consortium that is to invest €18 million into the Marsa Race Track is a partner and Group Director of Henley & Partners Holdings Ltd based in Jersey.

The MOU was signed on 22 March this year, the same day Marsa Race Track Ltd was set up.

While the company has €100,000 share capital currently, the MOU reveals that this amount would be able to increase to €6 million once a concession agreement is signed. It also reveals that the company’s financing through bank facilities, loans granted and guaranteed cannot exceed 40% of the total investment cost. The company also pledged to prepare the full architectural development designs for the site within 12 weeks from when the MoU was signed, which would include all the proposed facilities.

The MoU states that the parties are interested in cooperating to carry out a concession for the design, development, construction and operation of the horse racing track in Marsa. It also states that the parties are conscious of the need to maintain a balance between ecologically friendly development, low-density, high-quality building and to achieve sustainable development for the benefit of the Maltese economy and community.

The MoU reads that the project will be environmentally friendly, and aims to bring the track to a level comparable with international horse trotting tracks. The MoU also states that government will propose a motion for a special resolution to be issued by the House of Representatives for the grant by title of temporary emphyteusus for a 65-year period, subject to an €18 million investment within the first four years of the concession period.

The company bound itself to use the entire site, in relation to the operation of a horse racing facility, namely for developing, operating and maintaining a horse racing track, and related ancillary facilities and activities, including polo.

“The company undertakes to develop and operate the Polo Field to international standards and shall enter into discussions with the Malta Polo Club regarding the development and operations of the polo field.

They have also agreed to take on the current staff complement.