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During 2010, Government commenced the development of the area known as City Gate in Valletta, Malta, which development reflects the schematic designs of the internationally-recognised architect Renzo Piano. As a result of the development, the City Gate area will be replaced by, inter alia: two interconnecting buildings consisting of the Parliament Building; the historical site which will be transformed into the Open-Air Theatre; and the landscaping of public areas.

Government has, entered into an agreement with GHRC pursuant to which Government engaged GHRC to, inter alia, construct and develop the City Gate area in accordance with agreed timelines and specifications;, engaged GHRC to construct and develop the City Gate area. GHRC is a public limited liability company set up in August 2007 as a government entity under the Ministry for Infrastructure, Transport and Communication. GHRC’s main activity is the promotion of the implementation of selected projects for the Grand Harbour area in Malta. Government is required to compensate GHRC for the services rendered by it in terms of the contracting agreement.

On 26 June 2012, the company and Government entered into a public deed pursuant to which the company acquired the 65-year utile dominium over the Parliament Building and Open-Air Theatre. In terms of the deed, Government is required to complete the development of the Parliament Building and Open-Air Theatre in accordance with the pre-established specifications and timelines.

Upon completion of the Parliament Building and Open-Air Theatre, the company shall lease the Parliament Building and the Open-Air Theatre, to the Government of Malta.