The TNG Global Foundation will pay £90m in cash to the Gibraltar Government for the development rights of the Eastside reclamation, in a “transformational” deal that also includes projects in the area valued at a further £240m.
The value of the agreement is estimated to be about £330m in direct cash payments to the Government and expenses that will now be shouldered by TNG Global, which has committed to projects including sea defence works, affordable housing, a marina and public parking.
Sir Joe Bossano, the Minister for Economic Development, said the project would have an economic impact of £2.5bn over the next decade, roughly the same as Gibraltar’s current GDP.
The TNG Global Foundation was recently established in Gibraltar by Mr Tuan Tran, the ultimate beneficial owner of Trusted Novus Bank.
Trusted Novus Bank became the new name of Jyske Bank (Gibraltar) formed April 2020, and to operate under the ownership of Rooke Investments Limited.
Other headlines -
Gibraltar Government seals Eastside deal with TNG Global valued at £330m – The TNG Global Foundation will pay £90m in cash to the Gibraltar Government for the development rights of the Eastside reclamation, in a "transformational" deal that also includes projects in the area valued at a further £240m.
The property market in Gibraltar has developed positively for a number of years. This is due to a combination of factors including high demand for rental properties, rental yield being 4%-6% on average and the absence of locally applied Capital Gains Tax.
With a high demand for Buy-to-Let properties, TNB recently developed a new product concept to support and facilitate the residential rental market.
Can you explain why TNB decided to explore the Buy-to-Let market?
This has been an interesting market in Gibraltar during the last few years; a big part of the property market where we have seen several developments geared specifically to the Buy-to-Let target audience (E1, Eurocity, West One, Marina Club etc.). We’ve also experienced that many property investors are interested in partners that can help fund these purchases and we are very interested in helping them with this.
Midtown Park donated by Trusted Novus Bank – As announced by Chief Minister Fabian Picardo on Tuesday 20th July, Midtown Park has been entirely funded by the Board and shareholders of Trusted Novus Bank. This is just one of the ways that the Bank aims to show that it is a truly local Bank by giving something back to the community in which it is itself, deeply rooted.
The GSD says the Government's Eastside Project and TNG Global Foundation deals “require scrutiny”.
A statement from the GSD follows below:
The untransparent allocation of major plots of land within days raises continuing questions. The Government announcement of the TNG Global Foundation as the successful tender for all of the 13 plots at the Eastside project requires further scrutiny. There are a number of aspects that raise transparency and due process issues as well as the use of land and value for money.
Last week the Government announced it was awarding the Bayside and St Anne’s sites to the same entity who were said to be the highest bidder in the expressions of interest process. The GSD have not had satisfactory answers as to how that could be so when the EOI process in respect of that site closed in 2017 several years before TNG Global Foundation were even established. As we have said that raises issues as to the transparency [fairness?] of that process.
Close on the heels of that announcement a few days ago there has now been a major award in favour of TNG Global Foundation of the Eastside project. There is open speculation as to whether the same entity is also going to be awarded the Rooke site. We will have to wait and see what announcements are made in that respect. It is strange that having announced a freeze of development on some of these sites there is now an apparent scramble to award them all to the same entity.
Earlier yesterday the GSD were provided a copy of a screenshot [now deleted] by Hassans, the law firm, stating that a team of named lawyers from that firm acted for TNG Global Foundation on this deal. If that is so the Government will need to explain how it dealt with the obvious conflicts of interests issues that arise. When land allocation processes are carried out there has to be the highest level of transparency and due process.
The Government says it can confirm that all negotiations in respect of the premia and consideration for the grant of development rights over Bayside / St Anne’s plot and the Eastside plot were conducted “wholly and exclusively” between the Chief Minister, Fabian Picardo, for the Government, and Mr Tuan Tran, Madam Huong and Mr Adrian Olivero for The TNG Global Foundation.
Mr Picardo was assisted by the Deputy Chief Minster, Joseph Garcia, the Financial Secretary, Albert Mena, and the Chief Technical Officer, Hector Montado. The Government says that “no lawyers were present” for either side from any firm for any part of the negotiation of commercial terms of the transactions.
Felice: So I am delighted to come back onto the scene again with a spot of good news for our jurisdiction, and for our firm. I had the tremendous opportunity of leading the Hassans' team that acted for Rooke Investments Limited in its acquisition of Jyske Bank Gibraltar. A resounding success for our client, and exciting, positive news for Gibraltar as we brace ourselves for life-after-COVID – I'd never bought a bank during a pandemic before - there's always a first time I guess!, Ian Felice
Or that these individuals from that team were not involved?
The Hassans' team advising on the transaction included: Partners Ian Felice (lead Partner), Lewis Baglietto QC, Kenneth Bonavia, Nicholas Howard, Gillian Guzman QC, Valerie Holliday, Grahame Jackson, Francis Warne and Senior Associates/Associates Darren Martinez, Chloe Oppenheimer and Tania Rahmany – Jyske Bank sale completes, a huge welcome to Trusted Novus Bank, Catherine Knock
Wouldn't TNG Global Trust want to use attorneys they trusted who had advised them before on such an important deal?
The partners of Hassans law firm have accused the Together Gibraltar Leader, Marlene Hassan Nahon, of launching an 'unfair and groundless' attack on two of its partners.
A statement from the company denies any conflict of interest involving Justine Picardo and Gemma Vasquez, as regards the development rights awarded by the Government to TNG Global Foundation.
The partners of Hassans say (Fabian Picardo's wife) Justine Picardo and Gemma Vasquez assisted the TNG Foundation exclusively in respect of contracts with third parties and not the Government. This, they say, related to construction work, which is their field of expertise, and which they say they are entitled to practice.
They stress all communications between TNG Foundation and the Government were conducted by partner Ian Felice, who has acted for the Tuan family group since 2018. The statement denies any conflict of interest in respect of either Mrs Picardo or Mrs Vasquez's representation of the firm's client.
Plans have been filed for a major redevelopment of the Eastside reclamation plot envisaging a mix of residential and hotel accommodation next to a marina and a new botanical garden.
The plans follow the Gibraltar Government’s announcement last October that it had reached an agreement with TNG Global Foundation to redevelop the Eastside plot.
TNG Global Foundation will pay £90m in cash to the Gibraltar Government for the development rights of the site, in what was described at the time as a “transformational” deal that also includes projects in the area valued at a further £240m.
The value of the agreement is estimated to be about £330m in direct cash payments to the Government and expenses that will be shouldered by TNG Global, which has committed to projects including sea defence works, affordable housing, a marina and public parking.
The plans filed by TNG Realty (Eastside) Ltd with the Town Planner on Friday offer a first glimpse into the group’s vision for the eastside project.
In a set of detailed and extensive documents, TNG outlines the various aspects of the project, which will involve construction of defensive coastal works and a breakwater.
These are preliminary designs that must yet be scrutinised and approved by the Development and Planning Commission. As such they are likely to change.
The scheme must also undergo a detailed Environmental Impact Assessment [EIA], including careful analysis of any transboundary impacts.
And while the plans have now been filed, the scheme is still in its very early stages, with the Gibraltar Government and TNG yet to finalise the agreement announced last October.
“The plans filed by the proposed developer are not agreed by the Government as landlord, as the agreement between TNG and the Government for the eastside project has not yet been finalised or signed,” a spokesman for No.6 Convent Place told the Chronicle.
“The EIA is also not yet completed and the DPC will have to consider all aspects of the project.”
“The Government expects coastal protection works to be necessary but has not approved any additional reclamation.”
“Any aspects which create transboundary effect will require cross border consultation.”
PLANS
The designs submitted by TNG show a new urban area on the Eastside plot consisting of a hotel, some 1,300 residential properties including 100 affordable homes and a mix of commercial and retail units, all centred around a new marina.
They also envisage creation of 500 public car parking spaces as part of the project, which would be developed in several phases.
The designs seek to celebrate the position of the site as the natural interface of the Rock and the sea when viewed from the European mainland, according to the design statement filed with the application.
At its heart will be a linear sunken garden, bounded by the Rock to the west and the project’s urban “builtscape” to the east.
The aim is for the green area to serve as a contemporary botanical garden in the tradition of Gibraltar’s Alameda Gardens, with retention pools that can harvest rainwater from the Rock for the purposes of irrigation of the soft landscaping of the project.
The sunken garden will also give the buildings better exposure to natural light especially during afternoons when the shadow of the Rock overcasts the site.
DEVELOPMENT
According to TNG, the site’s proximity to Catalan Bay demands an urban solution that reflects its proximity to this historic settlement.
To achieve this, TNG proposes a mixed low-rise development that seeks to complement Catalan Bay, in effect extending the crescent shaped configuration into the southern areas of the development site.
“The Catalan Bay promenade can thereby extend across the beach into the project, where several food and beverage outlets will complement those already existing,” the design statement says.
Running through the design is a desire to create spaces that will encourage social interaction.
There will be a promenade on two levels with waterside gardens, water features and commercial units with an emphasis on al fresco dining along the water’s edge.
“Trees with generous canopies will be selected to reduce the need for artificial shading devices and these will be interspersed with deciduous trees intended to allow sunshine to filter through in winter,” the statement adds.
There will be a pedestrian high street that will run from North to South which aims to focus as a commercial zone dedicated to retail.
At either end of the street, there will be a piazza which will have a view to the sea. There will also be a “modest” shopping mall near the high street.
To the east and west of this, there will be pedestrian walkways leading away to the quieter residential zones. These linear parks will prioritise the provision of shading for increased comfort of pedestrians.
Each of the “residential clusters” in the design enclose shaded green courtyards for the exclusive use of residents, including pools and play areas for children.
Each cluster is conceived as terraced volumes, encouraging outdoor living and social interaction. Each cluster also includes a modest medium-rise residential block to crown the courtyard volumes.
The project also aims to include some office space.
“Premium office space, complete with a fully-fledged business and conference centre, will be located in a purpose-designed building in the north arm of the marina,” the application says.
“Other office facilities will be provided in the retail high street area of the project.”
The hotel will be spread over six levels with a minimum of 200 rooms.
It will have the typical facilities such as restaurants, spa/wellness centre, conference facilities and an outdoor pool.
A private members’ yacht club is also envisaged with direct access to the marina.
PARKING
All off-street parking provision will be underground and aims to provide 3,000 spaces, making the project free of vehicles.
The parking provision includes 500 car spaces for use by the general public spread between the number required for the small boat marina and the remainder close to Catalan Bay.
There will be a minimum of 160 vehicle spaces for the disabled, distributed throughout the parking levels. Motorcycle parking bays and bicycle racks will also feature throughout the complex.
“A minimum 20% of all parking bays in the initial phase will be fitted for electric vehicle charging, with subsequent phasing supplementing this provision according to demand,” the design statement says.
MARINA
The designs filed with the Town Planner show a new, large marina at the front of the reclamation site, protected by an outer sea wall.
The marina itself will cater for various sizes and types of vessels including superyachts, and will have a landmark tower in the centre of the body of water, rising up nearly 25 floors.
This will be home to the development’s premium residential spaces, managed by the hotel.
It will have duplex townhouses, seafront apartments, premium apartments, inland view apartments/duplexes and duplex loft.
Another section of the marina will have a museum dedicated to the maritime history of Gibraltar as well as an external public space and garden for a children’s play area in front of the building, where there will be interactive installations illustrating Gibraltar’s maritime heritage.
The plan is to create a “high quality ‘world-class’ fully serviced marina” to rival others in the region.
As proposed, the marina basin has a water area of 16.8ha accommodating 550 to 600 berths able to accommodate vessels ranging from 6m to over 100m.
It will be able to accommodate 15 to 20 superyachts ranging from 30m to 100m.
“To mitigate both navigational conflicts and vessel activity adjacent to Catalan Bay, two entrances to the marina are proposed,” the design statement says.
These include a main entrance to the south and small boat entrance to the north.
BOTANICAL GARDEN
According to the planning statement, the Eastside Botanical Garden will provide an opportunity to create a public garden that adapts itself to contemporary recreational and educational needs.
“Whereas the provision of dense green areas with tall-stemmed trees will provide most areas with shaded leisure spaces, the ground cover will host a diversity of surface textures to accommodate a variety of activities, from calm, contemplative spaces to areas that encourage increased social interaction,” the design statement says.
“Children’s play areas will be adapted to contemporary sporting activities, providing comfortable, safe enclaves for these purposes.”
“The Botanical Garden may sit on prehistoric routes leading to Gorham Cave and this provides an opportunity to include an interpretation centre dealing with Gibraltar’s prehistoric heritage.”
ENVIRONMENT
The design includes details of how the development plans to harness solar energy mainly using photovoltaic panels.
The development’s goal is to achieve a liveable healthy indoor and outdoor environment that aims for carbon neutrality for building operation and construction minimising potable water demand.
“A water tank in the basement provides the possibility for rainwater collection through the year as well as grey water storage and reuse,” the design statement says.
“The water can be used for irrigation purposes and to flush the toilets.”
Solar driven reverse osmosis could potentially cover the remaining water demand.
As part of the development of the Eastside plot, TNG Realty (Eastside) Limited is seeking permission for two Environmental Impact Assessments (EIAs), one to construct coastal protection works within the area of water extending to approximately 500 metres from the rubble tip, and one for the waterside development.
“Two separate but complementary Environmental Statements have been prepared to support a single outline planning application for this development, one for the coastal protection works required to develop the eastside site and one for the waterside development for the mixed-use development and marina,” the application states.
“This approach reflects the role of Her Majesty’s Government of Gibraltar (HM GoG) as lessor for the eastside spoil disposal site and as the competent authority for all coastal protection works and the role of the developer TNG Realty in the design and implementation of the proposed masterplan.”
“The coastal protection works comprise an outer breakwater, coastal defences to the north and south of the marina, beach recharge, additional land reclamation and coastal protection required along the new waterfront.”
“The waterside development comprises the land-side development of the mixed-use site, structures sited on top of the coastal defences, and the details within the marina such as the internal pontoon layouts and associated facilities.”
The application notes that numerous parties would be affected by its plans, including Monteverde & Sons, various Government management entities within its housing department, and residential management companies and businesses within Catalan Bay and the surrounding area.
Information filed states that consultations were undertaken in November 2021 with government organisations and environmental stakeholders to introduce the project and request feedback about their concerns and sources of information.
“These comments were taken into account in preparing an EIA Scoping Report setting out the proposed scope of the studies to be undertaken,” the application states.
“The Scoping Report was submitted to the Town Planner on 2nd December 2021 who provided a formal Scoping Opinion on 20th December 2021, confirming the scope of the EIA.”
The following topics were scoped into the EIA: marine ecology, landscape and visual, noise and vibration, coastal hydrodynamics and geomorphology, water quality and sediment quality, and traffic and transport.
The marine ecology assessment identified nine potential areas of impact during construction, including subtidal sand habitat and species, subtidal reef habitat and species, submerged and partially submerged sea caves and species.
“The potential impact of other operation activities arising from the accidental release of pollutants, anthropogenic pressures from harvesting or collection of fauna/flora, habitat alteration or loss due to beach renourishment, and habitat alteration or loss due to scour are predicted to be negligible,” stated the report.
On the project’s landscape and visual impact, the application noted that the removal of the rubble tip would be a benefit to the area and the “simple uncluttered interface between land and sea that would be created by the low horizontal lines of the breakwater arms have also been taken into account.”
“Most effects would therefore be of a low order and not significant in the context of this EIA.”
The scoping report acknowledges the likely impact of construction noise on neighbouring areas during the construction phase, although vibration effects are anticipated to be “negligible.”
The developer said it will implement the best practical means to minimise noise during construction.
It noted too that during the construction phase there will be an increase in construction-related traffic on local roads, but added that most of the construction materials will be delivered by sea.
The plans also study the impact of the development on hydrodynamics and geomorphology on neighbouring sites, adding there are no significant transboundary effects anticipated.
The developer said it would take steps to mitigate the impact on water quality during the construction phase, adding that this was expected to be of “neutral significance.”
It acknowledged though that “accidental spillages or leaks of fuel and oils could decrease water quality should they enter the coastal water body.”
“The magnitude of any chemical pollution incident on water quality would depend on the volume of the spill/leak as well as conditions on site at the time, specifically related to how effectively the water environment would be able to buffer the incident,” the report says.
“Any impacts on the Eastern Beach and Catalan Bay bathing waters would be temporary but could be significant.”
“While there would be no significant effect for Sandy Bay.”
On traffic and transport, the report says the scheme’s impact on the traffic and transport infrastructure will be confined to the construction stage of the coastal protection works.
These impacts are expected to be minimal as material will be moved by sea where possible to limit the number of lorries using the highway network.
Where lorries are required, their movements will be restricted so as not to coincide with those of the transport peak period.
Construction staff will work shift patterns beginning before the morning traffic peak and ending after the afternoon traffic peak.
“It is expected that a proportion of construction staff will come from Spain and that some of these staff will be provided with accommodation on site, so they would not have to use the transport network to access the construction site daily,” the report says.
“While border crossings are likely to increase, these are not expected to be significant.”
“Local staff would use sustainable methods to travel to and from the construction site, in which they would be encouraged to use public transport, walk, cycle or share vehicles when travelling to the site.”
The report also deemed that there would be no cumulative effects with other projects, adding that “as a consequence of the proposed mitigation measures incorporated into scheme design and construction management measures, it is predicted that there will be no significant transboundary effects.”
Residents of Catalan Bay have highlighted their concerns with regards to the marina in the proposed Eastside development, the Environmental Impact Assessment of which will be discussed at a meeting of the DPC today.
The development by TNG Realty (Eastside) Limited is the only one on the agenda for the Development and Planning Commission this morning.
Signing off the letter as The Catalan Bay Village Community “for the benefit of the whole of the Gibraltarian Community”, they highlight the various ways they believe the development will impact their lives and the lives of the marine life.
Such concerns as losing sunrise and the view of the horizon, an accumulation of water pollutants, oils, flotsam, dirty and stagnant water with the natural washing of the area with waves being affected, less marine life and the destruction of an eco-system that was fought to be protected, while also expecting an increase in invasive seaweed and jellyfish, dirtier and smaller beaches which will have a cost to repair or maintain in excess of today’s expenditure.
“All of the above is in our opinion scientifically crystal clear to happen if any marina goes ahead,” the letter written by the Catalan Bay Village Committee said.
In addition, parking costs were also noted and that locals would now have to pay to go to the beach outside the summer months.
“Let’s preserve our beaches, water quality, public health and our Gibraltarian environment for us and for generations to come,” the letter said.
“We need to remove any marina altogether from any Eastside project.”
An architect and EIA consultant will address the DPC with respect to the EIA for the proposed mixed-use development which is set to include residential, retail, commercial, private and public car parking and a new marina including reclamation works and a public green area and associated infrastructure and accompanying coastal protection works.
An objector is also set to address the Commission.
Phasing
A document on the phasing of the project has also been released by the developer.
Phase one, stage 1, relates to the working platform and protection. This includes the excavation of the seabed for foundation below caisson/ concrete armour units. The placement of the breakwater core, perimeter bunding and caissons. The rock armour and toe bund. The infill of the reclamation. The construction of the concrete armour units and crown wall.
Phase two relates to the main breakwater, extension and land reclamation. This includes the excavation of the seabed for the foundation below caisson/ concrete armour units. The placement of caissons, breakwater core, perimeter bunding to landside reclamation, rock armour and toe bund. As well as the infill of the reclamation and the construction of concrete armour units and crown wall.
Phase three relates to the Southern Arm and edge protection. This includes the excavation of seabed for foundation below caisson, the placement of the caissons, breakwater core, rock armour and toe bund. The construction of a crown wall and backfill to level.
Phase 4 relates to the internal marina and includes the marina edge protection structures, the piling and deck construction and floating pontoon.
The Government has noted the protest in Catalan Bay yesterday afternoon by its residents against the developments on the Eastside.
The Chief Minister, Fabian Picardo, said: “Earlier this week I made it clear in Parliament that I will not allow any development that damages Catalan Bay or it’s surrounding areas. All members of the government team agree.
"We will, of course, listen to the voice of Catalan Bay residents and their representations will, of course, be taken into account by the Development and Planning Commission (DPC) when making its decision on the full planning application for the Marina aspect of the development. The Marina has not yet got the full requisite planning permission and still had to go through the detailed planning application in a manner that will create confidence in the people of Catalan Bay and Gibraltar that the concerns being expressed will be dealt with properly.
“It is our duty, along with the DPC, to ensure that any project is done in a way that meets environmental impact assessments and that the project is completed in a sensitive manner.
"This project is an investment for our entire community and, in particular, for the people who live on the Eastside, especially in Catalan Bay.
"The marina for this development will be accessible to the general public and will be another location for all residents of Gibraltar to enjoy throughout the year.
"But I want to be clear, the design of the Marina will not be permitted to cause a problem for Catalan Bay.
"Catalan Bay is loved by everyone in Gibraltar and beyond and the Marina part of the Eastside development will, I am sure, be allowed by the DPC only if it is designed in a manner that causes none of the issues that are feared by the residents".
TNG Global Foundation (“TNG”) is delighted to announce that it has obtained Outline Planning Permission (“OPP”) for the development of the Eastside project.
The application for OPP (which included the submission of comprehensive Environmental Impact Assessments) was heard on 22nd April 2022, and the Development and Planning Commission resolved to approve the OPP unanimously (subject to conditions).
TNG is especially excited about the prospect of delivering a signature project that will positively transform the East side of Gibraltar. TNG’s plans for Eastside will cement Gibraltar’s place on the map as a prestigious destination, providing the community with a sleek, modern, exciting development that will be a social meeting point for families to enjoy ample leisure facilities such as restaurants, cafes, the marina and other amenities, including a large botanical garden.
The plans for the Eastside project will have the additional benefit of removing the rubble tip that has accumulated in the area as an eye-sore for over 25 years. This will be enormously satisfying to everyone, but particularly to the residents of Catalan Bay.
The construction at the Eastside of affordable homes, berths for small boats, and 500 parking spaces (which will be free to use for beachgoers during the peak Summer months), will maximise the use of the development for the benefit of the local community. TNG has also agreed to take-over the cost of the revetment works at the site of Hassans Centenary Terraces, highlighting its commitment to assist the Government of Gibraltar and the wider community with much-needed infrastructure works in the area.
TNG has the platform, resources and drive to create a vision for a mixed-use area that will complement and add value to its surroundings, making it a vibrant entry-point to Gibraltar, well positioned to attract visitors to the Rock, and to service the local community.
The project will be developed over a period of around 10 years, and TNG is well alive to the importance of doing so sensitively. It will embrace the history, culture and uniqueness of the Catalan Bay beach and village, as well as Gibraltar’s wider heritage and history as the gateway to the Mediterranean. At the same time, TNG will focus on delivering a project that is environmentally sustainable, to include the latest technology and know-how in this sector, a factor that was positively highlighted by the DPC during the application for OPP.
TNG has a clear vision for a project that has been described by the Government of Gibraltar as “transformational”. This is geared to complement and improve Gibraltar’s landscape by building a development that will blend into the social DNA of our homeland.
TNG is already an important partner to Gibraltar and its people, and wants to continue to be so. This partnership commenced with the acquisition by TNG’s founder (at the very start of the pandemic) of Jyske Bank (now Trusted Novus Bank (“TNB”)) at a time when Gibraltar otherwise faced the prospect of another bank leaving our shores, thus preserving over 100 jobs and thousands of customer relationships.
The social partnership was further enhanced with TNB’s donation of £200,000.00 to the GHA’s Covid Fund during the initial stages of the pandemic.
Soon thereafter, TNB, on behalf of its Board and Shareholder, agreed to make a donation of £3,900,000 to cover all the costs of Campion Park, thus further cementing its relationship with Gibraltar and the community. TNG is currently building 2 brand new schools for the Government of Gibraltar, and will thereafter embark on another exciting mixed-use development in the Bayside area.
TNG remains committed to continue liaising with the Government of Gibraltar and with other stakeholders, when considering other projects to invest in. This will serve to further enhance TNG’s relationship with Gibraltar and its people, as well as allow TNG to continue contributing to Gibraltar’s social and economic future.
Residents of Catalan Bay protested proposed plans for a marina in the Eastside over the weekend, but in response Chief Minister, Fabian Picardo, said the development would not damage the beach.
Mr Picardo said the Government will listen to the voice of Catalan Bay residents and their representations would be taken into account by the Development and Planning Commission (DPC).
An online petition created by the Caleta Youth Committee launched a month ago outlining concerns has amassed over 2,500 signatures so far.
"The Marina has not yet got the full requisite planning permission and still had to go through the detailed planning application in a manner that will create confidence in the people of Catalan Bay and Gibraltar that the concerns being expressed will be dealt with properly,” Mr Picardo said.
“It is our duty, along with the DPC, to ensure that any project is done in a way that meets environmental impact assessments and that the project is completed in a sensitive manner.
"This project is an investment for our entire community and, in particular, for the people who live on the Eastside, especially in Catalan Bay.
"The marina for this development will be accessible to the general public and will be another location for all residents of Gibraltar to enjoy throughout the year.
"But I want to be clear, the design of the Marina will not be permitted to cause a problem for Catalan Bay.
"Catalan Bay is loved by everyone in Gibraltar and beyond and the Marina part of the Eastside development will, I am sure, be allowed by the DPC only if it is designed in a manner that causes none of the issues that are feared by the residents".
Last week Mr Picardo dismissed the “inaccurate” images of the proposed plans for a marina circulating on social media, while addressing questions on the east side development in Parliament.
He said there was “genuine good faith” on behalf of the developer, TNG, in wanting to ensure that what they do there “enhances Gibraltar, enhances the east side, and enhances Catalan Bay”, to make it the “central most attractive area” of the development.
Mr Picardo said the line of the marina “will not impede the line of open water” if viewed from Catalan Bay, in response to questions tabled by the GSD’s Damon Bossino over the concerns of residents on the density and urban impact of this development.
Mr Bossino told the House he tuned in to the Development and Planning Commission meeting online and heard the arguments against the development from residents.
He added that the current proposals “was much bigger than the development plan envisaged for the area” in previous plans.
But while Mr Picardo acknowledged the concerns of residents, he added that Minister for the Environment, Dr John Cortes, indicated that he thought the environmental concerns raised by a resident was “misconceived”.
“There should be no suggestion that there be a separation between the Government and the people of Catalan Bay in respect of the protection of Catalan Bay and the enhancement of Catalan Bay,” Mr Picardo said.
“Indeed, Mr Speaker, for 30 years we have all failed Catalan Bay because we have all promised the people of Catalan Bay that we are going to get rid of the reclamation and the mountain.”
“This, we believe, is finally a situation where we will finally be able to get rid of that unsightly, dust-producing mountain in Catalan Bay in a way that does not produce any prejudice for Catalan Bay.”
“But in the process of finalising contracts in the respect of the East side, the Government will bend over backwards to ensure that none of what we do will create any adverse consequences for Catalan Bay.”
“Quite the opposite, we want the area of Catalan Bay to be enhanced with this project.”
The Chief Minister said the Government received 19 expressions of interest in answer to its advert for its 13 plots on the east side reclamation.
In response to questions from the Leader of the Opposition, Keith Azopardi, Mr Picardo said the expression of interest into the project closed on September 4, 2020, and the Government subsequently opened discussions with the highest bidder for the entire site.
But after a series of delays and requests for extension before placing £10 million of the total premium in escrow, the Government terminated these negotiations in July 2021.
TNG then approached the Government with a “considerably higher premium offer” and a public announcement was made in October 2021.
Mr Picardo said the Government commenced discussions with TNG “only after the preferred bidder failed to provide the deposit required”.
He said TNG paid “considerably more” than any of the other bidders who submitted expressions of interest.
Mr Picardo said the Government has still not received a premium in cash, but it is in negotiations with TNG to move from “heads of terms” to a finalised detailed agreement which will result in a premium of £90 million cash being paid to the Government.
He said the Government “is very close” to seeing this payment made in full.
Mr Picardo said the highest bidder of the 19 expressions of interests had been unable to provide the deposit before the Government engaged with TNG.
“Successive Governments have been here before, and we have not been able to make the east side stick,” Mr Picardo said.
“I trust that they wish upon us success in this respect, not just so that we can fulfil their manifesto commitment of 1996, but so that we can all of the benefit of £90 million for our public coffers.”
He said that now that outline planning permission has been granted, negotiations will advance.
The House heard that 121,000 tonnes of material has been moved from the east side reclamation to the Victoria Keys site, adding that the cost for this including the testing, extraction, processing, transportation and placing this material has cost £1,697,438.57 to date.
But the only rubble that will be cleared will be for the second part of the Hassan’s Centenary Terraces, with the rest being left for the TNG developers for the marina.
The House also heard that the cost of the Hassan’s Centenary Terraces to date has cost the Government some £63.35 million until the end of April, 2022.
TNG releases video of east side project and insists it will be handled ‘sensitively’
Click the link above to watch the video.
TNG Global Foundation insisted on Tuesday that the development of the east side project will be handled “sensitively”, against a backdrop of protests from Catalan Bay residents concerned about the impact the project and the proposed marina will have on the area.
On Tuesday TNG published a fly through video of its proposed plans for the east side, adding that the project will “cement Gibraltar’s place on the map as a prestigious destination, providing the community with a sleek, modern, exciting development”.
TNG Global obtained outline planning permission for the project at a recent Development and Planning Commission meeting following a submission of Environmental Impact Assessments.
The developer was asked to make two amendments relating to the residential tower and the reduction of the small boats marina, with each phase of the 10-year project also to be further assessed by the DPC.
For his part, Chief Minister Fabian Picardo said the project will still need to go through the different stages before the DPC to gain full planning permission and reassured residents that the Government “will never permit anything that damages Catalan Bay”.
The plans for the east side project will also see the removal of the rubble tip, which has accumulated in the area as an eye-sore for over 25 years, TNG said in a statement.
“The construction at the Eastside of affordable homes, berths for small boats, and 500 parking spaces - which will be free to use for beachgoers during the peak summer months - will maximise the use of the development for the benefit of the local community,” the statement added.
“TNG has also agreed to take-over the cost of the revetment works at the site of Hassans Centenary Terraces, highlighting its commitment to assist the Government of Gibraltar and the wider community with much-needed infrastructure works in the area.”
TNG said it has the “platform, resources and drive to create a vision” for a mixed-use area that will complement and add value to its surroundings.
The project will be developed over a period of around 10 years, and TNG said it is “well alive to the importance of doing so sensitively”.
“It will embrace the history, culture and uniqueness of the Catalan Bay beach and village, as well as Gibraltar’s wider heritage and history as the gateway to the Mediterranean,” TNG added.
“At the same time, TNG will focus on delivering a project that is environmentally sustainable, to include the latest technology and know-how in this sector, a factor that was positively highlighted by the DPC during the application for outline planning permission.”
“TNG has a clear vision for a project that has been described by the Government of Gibraltar as ‘transformational’.”
“This is geared to complement and improve Gibraltar’s landscape by building a development that will blend into the social DNA of our homeland.”
TNG said it is already an important partner to Gibraltar and its people, and wants to continue to be so.
It cited its acquisition of Jyske Bank, now operating as Trusted Novus Bank, which it said preserved over 100 jobs and thousands of customer relations at a time when Gibraltar faced the loss of another retail bank.
It also highlighted the bank’s donation of £200,000.00 to the GHA’s Covid Fund during the initial stages of the pandemic and its donation of £3.9m to cover the costs of Campion Park.
Additionally, TNG is currently building two new schools for the Government of Gibraltar and will thereafter embark on another mixed-use development in the Bayside area.
“TNG remains committed to continue liaising with the Government of Gibraltar and with other stakeholders, when considering other projects to invest in,” the spokesman said.
“This will serve to further enhance TNG’s relationship with Gibraltar and its people, as well as allow TNG to continue contributing to Gibraltar’s social and economic future.”
‘A GREAT PROJECT’
The Gibraltar Government welcomed the release of the fly through video by TNG Global on Tuesday.
“The GSLP/Liberal Government promised the residents of Catalan Bay that it would remove the unsightly rubble mountain on the Eastside and this project will achieve that, as well as beautifying the area for all residents of Gibraltar and creating new economic activity,” a spokesman for No.6 Convent Place said in a statement.
“The video by TNG is of the parts of the project that have received outline planning.”
The project will return to the DPC for full planning permission in stages, and the Government said that this will be where the public will be able to make their views known as part of the planning process.
“It was the GSLP/Liberal Government under my leadership that transformed the DPC planning process after it was elected in 2011, busting it open, making it public and the minutes and decisions transparent despite the GSD arguing that it should keep it secret as it used to be under their administration,” Chief Minister, Fabian Picardo, said.
“The Government also subjects itself now to planning for all projects.”
“This project will therefore be subject to the DPC process for full planning which it has not yet received.”
“It is therefore wrong for anyone to suggest that the process of listening and working with residents of Catalan Bay and the wider community is over.”
“This is the beginning of a much wider planning process.”
Mr Picardo said that in a “thriving democracy like Gibraltar”, all points of view of expressed are taken into account.
“I love that about our small but proud nation,” Mr Picardo said.
“The planning process is a part of our vibrant democracy I am particularly proud of, as it is the GSLP/Liberal Government that has opened up the DPC and the planning process to enable all our citizens to have their say and to ensure that projects are improved in the process.”
“We will never permit anything that damages Catalan Bay.”
“The DPC will be listening for any concerns about any part of this project that can be improved.”
“But let us also be clear: this is a great project for our nation, for the east side and the people who already live there and for the people who will live there.”
“This is a great project for those who will live on the further affordable homes to be built on this site.”
“This is a great project for our economy and, as a result, for our public finances.”
“This is not a project for the rich.”
“This is a project for all of us and for our future generations.”
“The positive economic impact of this project will be massive.”
“I look forward to seeing the full planning stages resolved positively and work starting on this project for our all our people.”
‘NO TO THE MARINA’
But aspects of the project planned for the east side plot continue to generate concern in Catalan Bay.
Following the granting of outline planning permission, residents of Catalan Bay launched an online petition against the plans for a marina. The petition has already attracted over 2,600 signatures.
On Sunday, residents in Catalan Bay Village unfurled banners protesting against the marina from their homes.
The petition is being organised by the Caleta Youth Committee, which is concerned about the impact the marina project will have on the coastline and the beach itself.
“The youngsters in Catalan Bay decided to form a committee and take the mantle and really tackle this,” Gianni Cumbo, a resident of Catalan Bay and organiser of the petition, said.
“We feel that this is a concern that all of Gibraltar should share we have already surpassed 2,000 signatures.”
“We want to make it very clear that we are opposing the marina [rather than the overall project itself].”
“We know the mountain of shame needs to go and we are fully behind that and support it, but we have an issue with the proposed marina that extends all the way out into the bay.”
“This would enclose the Caleta and create a stagnant pool effect, so the tide that we have naturally with the waves would not clean the beach properly.”
There are concerns about pollution from the marina, as well as the “detrimental” impact it will have on the marine life and the beach itself.
Mr Cumbo said that during the Covid-19 pandemic, when beaches were quieters for months on end, sea life had been returning including bioluminescent plankton and a dolphin that came to the shore.
“The size of the marina and the breakwater according to the plans is going right out to the area of the Caleta hotel, and it will enclose the beach completely,” Mr Cumbo said.
Mr Cumbo said it is “very contradictory” that this is being planned when the government is fighting to protect the environment.
He added that Gibraltar already has four marinas, and very few beaches, and Catalan Bay is “one of the best beaches in Gibraltar”.
He said that although people are not aware of the size of the proposed plans, the petition is gaining more interest every day.
The Caleta Youth Committee will present the Government with the signatures of the petition in due course.
The news that Madrid has again protested to London at the Eastside project will catch nobody by surprise. There have been protests galore ever since the rubble tip was designated as a prime area for development decades ago. VOX
However, this time the details of the protest were revealed in answer to questions in the Spanish Parliament from a group of seven Vox MPs. The questions raised both the Spanish claim to the sovereignty of the waters and the potential environmental effects on the surrounding area. They also queried a potential increase in maritime traffic and the impact on Spanish fishermen.
This is not the first time that Vox has taken aim at the Eastside project. The Spanish right has no interest in any improvement in relations between Gibraltar and Spain. In some cases the constant raising of Gibraltar is for pure ideological reasons and in others it is little more than a useful tool with which to try and garner a cross section of wider support on other areas. The recent elections in Andalucía suggests that those tactics are not working, at least in the region next door.
The lease for the transfer of the Eastside reclamation plot to TNG Global Foundation was completed last Friday and the Gibraltar Government has been paid the agreed £90m cash consideration agreed when the deal was first announced, No.6 Convent Place said in a statement.
The relevant lease was signed by the Governor on Friday and the Gibraltar Government has now provided TNG with vacant possession of the site.
TNG last year secured outline planning permission for an ambitious plan to construct a mix of residential and hotel accommodation on the site next to a marina and a new botanical garden.
The £90m payment is part of a wider deal announced in October 2021 under which TNG will also undertake further works in the area valued at a further £240m, including sea defence works, affordable housing, berths and public parking.
TNG, a foundation linked to the Vietnamese businessman who owns Trusted Novus Bank, secured outline planning permission last year for the development of the Eastside reclamation.
The government says the project will be hugely beneficial to Gibraltar but residents of Catalan Bay fear it could have a detrimental impact on the environment.
In granting outline planning permission, the Development and Planning Commission stressed that each phase of the project will be subject to full planning applications.
“Since the announcement in October 2021, TNG has undertaken a huge amount of work to get to a position to be able to sign the agreement with the Government last Friday,” said TNG’s Adrian Olivero.
“We have already invested considerable amounts in developing our plans for the area, obtaining outline planning permission as well as carrying the cost of the construction of the revetment to the north of the site, to enable phase two of Hassan Centenary Terraces to progress.”
“We now look forward to starting work on the site to make those plans a reality for TNG and, in particular, for the people of Gibraltar who will benefit from a magnificent new and modern development on the Eastside.”
Chief Minister Fabian Picardo said the transfer of land was “a very positive step” toward delivering a project that would benefit the whole community.
“The plans that have been given outline planning permission will deliver a whole host of new facilities for our people,” he said.
“Additionally, the finalising of this transaction demonstrates a huge amount of confidence in Gibraltar and its economy.”
“Sir Joe’s estimation in 2021 was that the development had a potential economic impact of £2.5 billion, the whole value of the GDP again.”
“Given inflation, the economic impact of the project is now likely to exceed £2.75 billion.”
“The benefits to the Gibraltar economy and all entities within it will be massive and the completion of this transaction with a Group that has a demonstrable track record in Gibraltar will therefore be something for everyone to celebrate.”
“Importantly, an area that has been derelict for some years and an eyesore will be transformed by the commencement of works and development into a residential and leisure area without comparison, turning a negative into a positive for all the people of Gibraltar.”
No.6 said TNG has already made “huge progress” on the revetment required to enable works on phase two of Hassan Centenary Terraces to commence.
The value of these works to the taxpayer is over £9m to date, No.6 said.
These works will be followed by coastal protection works that will require the construction of a revetment costed at over £100m.
“These are essential works for the protection of the existing reclamation, without which the project would not be able to proceed,” No.6 said in the statement.
TNG is involved in a number of projects around Gibraltar, including the construction of two new schools on Europort Avenue which are near completion.
The foundation is also poised to file plans for the development of the old Bayside School plot.
In the statement, the Chief Minister thanked everyone involved in finalising the Eastside deal.
“For the Government, I want to thank Albert Mena, who as Financial Secretary started this negotiation; Hector Montado, the Chief Technical Officer; and John Paul Fa and the legal team at Isolas, led by Peter Isola, Christian Hernandez, Mark Isola and Samantha Grimes, for their extraordinary work and diligence,” Mr Picardo said.
“I also want to warmly thank Adrian Olivero for TNG, who has been committed to getting this transaction done and the TNG legal team led by Ian Felice, Gemma Vasquez-Arias, Nick Howard and Tania Rahmany at Hassans.”
“Finally, I want to thank GJBS for their work in clearing the site in time for completion and JT Security for the removal of derelict vehicles.”
The £90m paid by the TNG Global Foundation to the Gibraltar Government for the Eastside reclamation plot is sourced entirely from the foundation and involves no public money, the Gibraltar Government said last night as it responded to questions raised by the GSD.
The GSD had earlier said that the payment of the premium on the last day of the financial year “leaves open the question as to the source of monies”, adding the issue required “further exploration” given the Government’s “track record of opaque use” of Credit Finance, the Gibraltar Savings Bank and “public funds generally”.
The GSD called on the Gibraltar Government to confirm that none of the £90m was provided by the Savings Bank, Credit Finance or any government entity, and that no public or savers’ monies had been used on this project.
No.6 Convent Place was swift to respond to what it described as the GSD’s “unfounded claims”, which it said “could potentially harm Gibraltar's reputation”.
“The Government emphasises that all funds paid as the £90m premium for the Eastside project have been sourced from TNG Global Foundation and are entirely independent of the Government, Credit Finance Company Limited, and the Gibraltar Savings Bank and are not otherwise connected to any sources of funds originating from the Government,” No.6 said in a statement.
“Additionally, the lease in question will be registered and publicly available, providing full transparency of the terms of it.”
“The GSD's assumptions and allegations are, therefore, as usual, entirely erroneous and incorrect.”
The GSD has also questioned the timing of the announcement and the period of negotiation of the Eastside deal.
It said the project was adjudicated “with much fanfare” in October 2021 by the Government to TNG, an entity which “had not even submitted a bid” within the expressions of interest process conducted in relation to the Eastside.
“Indeed it was a company that did not even exist when the expressions of interest process closed,” the GSD said.
“That in itself raised serious questions at the time [and] 18 months on very little has substantively happened on site.”
The GSD said the deal was announced in 2021 and heads of terms signed at the time, but that just three weeks ago, responding to questions in Parliament, the Chief Minister accepted that there were still aspects under negotiation.
“The payment of the premium on the very last day of the financial year with the lease signed the same day shows how much of a last-minute scramble all this has been to save the Government from presenting an even bigger hole in its budget,” the GSD said.
“The Government should now publish the full set of contractual arrangements entered with TNG in relation to this site. If it does not do so a future GSD Government will.”
But the GSD’s position was dismissed by the government, which underscored that TNG had already invested millions of pounds on the Eastside project, covering professional fees for planning and the construction of the revetment for Hassan Centenary Terraces Phase Two.
“Once more, the GSD demonstrates its willingness to resort to any means during an election year to unjustly discredit the Government, even at the expense of Gibraltar's reputation,” Mr Picardo said.
“The public will not be deceived by the constant and unconstructive GSD sniping.”
“What will be evident for all to see is that all funds paid in this regard originate from TNG Global Foundation, and that the Government has secured an outstanding deal for Gibraltar and its citizens with this project which will herald huge, positive economic impact for decades to come.”
“The GSD’s unfounded criticism, however, will be no more enduring than second hand fish and chip wrapping paper tomorrow.”
“The transformation of the Eastside will be remarkable and will significantly benefit our community.”
“That is what the Government has delivered and what TNG Global Foundation has financed for itself, without any Government or Government related financing sources.”
“What is hugely disappointing for everyone in our community is that instead of being pleased for the benefits for Gibraltar and for Gibraltarians of all political parties, the GSD instead immediately reach for the standard criticism press release, whatever the negative effect on Gibraltar.”
TNG, a foundation linked to the Vietnamese businessman who owns Trusted Novus Bank, last year secured outline planning permission for an ambitious plan to construct a mix of residential and hotel accommodation on the site next to a marina and a new botanical garden.
The £90m payment is part of a wider deal announced in October 2021 under which TNG will also undertake further works in the area valued at a further £240m, including sea defence works, affordable housing, berths and public parking.
After numerous failed attempts in the past to find developers for the site, Mr Picardo expressed confidence that TNG’s project would develop the Eastside plot “into a new city for Gibraltar” that would have knock-on benefits across the community.
“I think this is now a runner, it's a goer, it's happening,” he said.
“They can do it, and they want to do it.”
The Chief Minister said Sir Joe Bossano, the Minister for Economic Development, had calculated that the project, which will take a decade to complete in different phases, would generate an economic impact of £2.5 billion, perhaps more given inflation.
“Whether you are directly in the construction trade or not, this is going to have a positive effect in economic terms,” he said.
He noted too that TNG had a track record in Gibraltar through its ownership of Trusted Novus Bank and was already nearing completion of construction of the new Bishop Fitzgerald and Governor's Meadow schools, which will be handed over to the government in coming months.
TNG also secured the rights to develop the plot of the old Bayside School.
“You're dealing with a very solvent entity here that is able to deliver against the sort of macro project that you're going to see on the Eastside, which is, in effect, the development of a new city for Gibraltar and will provide for expansion for Gibraltar for many years,” Mr Picardo said.
“So I think the important issue here is that this is a group that is proven in Gibraltar, is solvent and can deliver against an ambitious project like this one.”
He also played down the GSD’s concerns about the fact the deal was signed last Friday, the last day of the financial year.
“It’s not unusual in commercial transactions of this sort that the negotiation goes to the wire,” he said.
“Every time you look at a lease, you realise that there’s something else to change and that you need to perfect it in some way.”
‘We could have signed three weeks ago, but it was a question of perfecting documents and making sure that it was in the form that lawyers wanted to see it.”
