Hundreds of locals gather for peaceful protests in Ostuni, in the Mogale district of Southern Italy, to push back against Israeli investment fund ‘Onman Investment Group’ and Bill Gates’ €100 million mega-luxury resort project–Costa Merlata.
The demonstrations mark the largest mobilisation against the development since plans first emerged in 2021. Organisers have announced further protests in Bari, the regional capital, where they intend to press local authorities over the project’s approval and environmental impact.
Opposition to the project has been building for several years. Regional environmental organisations, including Legambiente, and advocacy groups such as the Brindisi Committee for Palestine have criticised the proposal since it was first introduced. The land, originally owned by Merlotta, is home to protected wildlife, migratory bird species, coastal dunes, caves, and sinkholes. Critics argue that the development risks permanently altering Puglia’s ecologically sensitive coastal landscapes.
Controversy Over the Approval Process
The approval process has also drawn scrutiny. In December 2023, Puglia’s Landscape Protection and Enhancement Section issued a negative assessment of the project before reversing its position three months later. Italy’s cultural heritage authority, the Soprintendenza, subsequently warned in December 2024 that the resort could cause an “irreversible alteration of the morphological and functional character of the coastal rural system of the Ostuni countryside.” Despite those objections, the Municipality of Ostuni approved the executive urban plan in January 2025, allowing the project to move forward.
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Why SEZ Authorization Risks Environmental Protection
Despite those objections, the administrative process continued. Following the Meloni government’s creation of the Single Special Economic Zone (SEZ) for southern Italy in 2024, the project was reviewed under a streamlined authorization procedure designed to encourage investment. The SEZ authorization approved a planning variation allowing the land to be designated for the development, prompting environmental groups to appeal the decision before the Regional Administrative Court (TAR), where the case remains pending.
Government officials have rejected claims that the resort itself has been approved. Luigi Sbarra, undersecretary to the Presidency of the Council of Ministers with responsibility for southern Italy, said the authorization applied only to the municipality’s planning amendment and remained conditional on a future environmental impact assessment (EIA). Critics, however, argue that while the final construction permit has yet to be issued, the planning approval effectively clears one of the project’s biggest legal hurdles and paves the way for its eventual development. Undermining the role of strict procedures with regards to environmental protection.
Why the Costa Merlata Project Has Become Politically Controversial
Public opposition has intensified in recent weeks as greater attention has focused on the involvement of Onman Investment Group. While environmental organisations continue to frame their objections around conservation, pro-Palestinian groups argue that the project’s Israeli financial backing carries broader political significance. The protests and project have been widely compared to Jared Kushner’s multi-billion-dollar resort development in Albania. Protest organisers say the campaign is driven by both environmental concerns and solidarity with Palestine.
Meanwhile, developers maintain that the resort will generate jobs, attract tourism, and contribute to the local economy. The Costa Merlata project is expected to include a 9-hectare luxury hotel with 49 buildings, 150 rooms, private villas, and hospitality facilities. A joint venture between Onman Investment Group and Four Seasons, the latter involving Bill Gates as a major shareholder.
With demonstrations expected to continue across Puglia, the dispute has evolved beyond a local planning controversy into a broader debate over environmental protection, foreign investment, and public accountability in one of Italy’s most environmentally significant coastal regions.
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