Energy Minister Konrad Mizzi said today that Shell would be providing the gas which would power the new gas power station and the BWSC plant once it was converted to gas.
Speaking in Parliament, Dr Mizzi gave an overview of the work being done by the government in the energy sector.
He said the government had reduced tariffs for private consumers and would reduce the tariffs for businesses next March in a further injection of €50 million in the economy.
New investment had been found for Enemalta, enabling it to reduce its debts and pay off its duties.
The investment in an Energy Service Centre would create new jobs for workers and forge new export markets.
The government was working to complete the interconnector and have gas power stations.
SEVEN-YEAR BUSINESS PLAN
A seven year business plan had been agreed with Shanghai Electric (the investor in Enemalta) and the price of energy had been fixed for five years in virtue of the power purchase agreement with Electrogas. After that the electricity price would be linked to an international index.
Over these seven years Enemalta would recover and stand on its own feet.
Dr Mizzi said Shanghai Electric would finance the conversion of the BWSC plant to gas.
Improved focus would be made on energy reliability with new investment in the distribution network, also in conjunction with Shanghai Electric.
Generation would come from the new gas power station being built by Electrogas using Siemens equipment, the BWSC plant, the interconnector and Delimara II. Delimara II would be kept in reserve.
Malta, he said, could not rely on the interconnector since it was subject to failure because of its many joints, as well as possible damage from ships' anchors. Should the new power station not be built, the government would have had to keep Delimara I and Marsa as reserve in case of interconnector failure.
NO OBLIGATION TO BUY ELECTRICITY
Dr Mizzi said the government would not be obliged to buy the output of the BWSC plant operated by Shanghai Electric, as the Opposition leader had claimed. Enemalta could source supplies which was best suited for it.
On the power stations, Dr Mizzi said technical talks on the conversion of the BWSC plant to gas would be concluded shortly. The plant would still be able to use gas oil. Emissions would be 50% cleaner than at present
Meanwhile with regard to the new gas power station, work had started on the regassification plant. Work would be taken in hand on the building of a new jetty and the infrastructure for the provision of gas.
The gas plant itself would be provided by Siemens and the gas would be procured from Shell.
Meanwhile, work was starting on the dismantling of the Marsa power station.
Dr Mizzi said the investment of €320 million by Shanghai Electric and its mother company in Enemalta was just the beginning, and more investment would be announced in the future.
Labour MP Marlene Farrugia, interjecting, asked the minister what new timeframes were being set.
Continuing, Dr Mizzi spoke on the Petroleum Division. He said this had been hived off Enemalta and absorbed in a new government company EneMed, as first announced last June. Announcements would be made in the near future, including the closure of the March 31 installation near houses in Birzebbuga.
AMERICAN PARTNERSHIP FOR MOBC
On MOBC (the bunkering company) Dr Mizzi said this was a blot on the Nationalist government's history. Under this government a new partnership had been forged with a major American company, World Fuel Services which would ensure a profit for MOBC.
On the interconnector, Dr Mizzi said the last four kilometres remained to be laid.
TIMELINES
On timelines, Dr Mizzi said tariffs had been reduced as planned and would continue to be reduced as announced. Works on the new power station were in hand by Electrogas but talks were being held between Enemalta, Electrogas and Shanghai Electric on a master schedule for the whole project. Once it was agreed it would be announced immediately. However he could assure the House it would not be a delay of years and construction work would not exceed 18 months.
IRREGULARITIES IN CONTRACT
Concluding, Dr Mizzi called on Nationalist MP George Pullicino to listen well. He said an audit investigation had found shameful irregularities in a €35m contract for the installation of photovoltaic panels on public buildings, awarded to a private company by the former government in its last days.
The contract was awarded by George Pullicino's ministry and provided for a feed-in tariff of 23c per electricity unit for 25 years. The feed-in tariff should have been 16c.
The company that was awarded the contract was the only one which had bid for the contract.
What was especially shameful was how documents handed to the company during the adjudicating process included an unsigned bank letter (see below). The bank had told the investigators that it was impossible for it to have issued such a document.
The case has been referred to the police.
Interjecting, Mr Pullicino said he would not allow the minister to harm his reputation.
(Interruptions)
At the end of his speech the minister moved amendments to an opposition motion which had criticised the government's handling of the energy sectors. Instead, the motion praised the government for the work it was doing.
NO CONTRACTS PUBLISHED
Winding up the debate, Opposition deputy leader Mario de Marco said the government had not replied to the questions raised by the Opposition and the people and had also not published any contracts. No power purchase agreement was published. Was a call for expressions of interest made before the new partnership for MOBC?
The people had not been told when the power station promised by Joseph Muscat within two years would actually be completed.
No explanation had been given as to how the drop in revenue from lower tariffs would be sustained. Dr Muscat had promised anticipated payments by the company building the power station to fund the drop in tariffs. €30m were due to have been paid by Electrogas this year. Had even one cent been paid?
If no payments were made, how were the lower tariffs being sustained?
At the end of the sitting, the motion, as amended by the government, was approved with 35 government votes in favour and 29 opposition votes against. Nationalist MP Beppe Fenech Adami, who is ill, was paired by Labour MP Karmenu Vella. Labour MPs Michael Falzon, George Vella, Louis Grech were absent.
