The government of Gibraltar has announced that it will be saving hundreds of millions of pounds in expenditure following an agreement with the TNG Global Foundation for the development of the Eastside Reclamation project.
TNG Global Foundation was recently established in Gibraltar by Mr Tuan Tran, who is also the ultimate beneficial owner of Trusted Novus Bank. The bank recently committed to donate the cost of the Midtown Park to Gibraltar, and that money is due to be paid before the end of November. Last week the government also announced that it had granted development rights over the old Bayside and St Anne’s sites to TNG Global Foundation.
The government has now signed Heads of Terms for the Eastside project, and TNG says it has already started working on the environmental impact assessment. It will pay £90 million in cash when the environmental impact certificates are granted for the proposed coastal protection and the Eastside Project and it has received outline planning permission for the Eastside Project.
TNG will also immediately take over and complete the revetment works necessary to protect the Hassans Centenary Terraces development, which will save the government an estimated £18 million.
It will also take over and complete the construction of the coastal protection works and the consequent flattening of the Eastside plot by the end of 2023. This will include developing the marina for superyachts, with an outer wall which can be used for people to walk, cycle and also fish from specially built platforms. The value of this to the government is estimated to be around £100 million.
TNG will be building 400 berths for small boats, and these will be offered for sale or rent to people on the Port Authority waiting list. The value of this to the government is estimated to be in the region of £20 million.
TNG will also be constructing 100 low-cost apartments and has undertaken to complete them within 36 months of the date of full planning permission being received. The apartments will be built to the same standards and specifications as Hassans Centenary Terraces and will be sold by TNG on the same terms and conditions. Priority will be given to people on the government housing waiting list or those who are eligible to be on the list, who have links with Catalan Bay. The value of this element to the Government is estimated to be in the region of £30 million.
The TNG Global Foundation is also to build a public car park with capacity for 500 vehicles at the Eastside plot. The value of this to the government is estimated to be in the region of £12 million.
Under the agreement, TNG will also assume ownership of and liability for the rubble located at the Eastside Plot, apart from approximately 200,000 cubic metres which the government will remove and use for phase 2 of Hassans Centenary Terraces. The value to the government, which will now not have to move the rubble to flatten the Eastside Plot, is estimated to be around £60 million.
The government says the total direct value of the project to the community is estimated to be in the region of a total of £330 million pounds, expenses which the tax payer will not have to shoulder.
Sir Joe Bossano, Gibraltar’s Minister for Economic Development and Inward Investment, estimates the economic impact of the project over the next ten years to be equivalent to the whole of GDP of Gibraltar again, i.e. approximately £2.5 billion.