The acquisition of a minority stake in Enemalta will likely grant Chinese state-owned company Shanghai Electric Power the right to appoint a corporation’s vice-chairman, Energy Minister Konrad Mizzi revealed today.

Dr Mizzi was addressing the Malta Council for Economic and Social Development, which was convened to discuss the signing of a memorandum of understanding paving the way for SEP’s acquisition of a non-controlling stake in Enemalta, as well as other issues concerning the company.

The minister pointed out that SEP’s initial plans to invest in Malta focused solely on renewable energy, but added that the government turned the company’s attention to Enemalta, which paved the way for the eventual signing of a memorandum of understanding last month.

Dr Mizzi also said that the valuation of Enemalta, which should be done by the end of the year, will not be based on its present value – with its liabilities exceeding its assets – alone: the corporation’s future potential will also be taken into account.

He stressed that investment was necessary to turn the company’s fortunes around, and to generate enough revenue to enable it to make the necessary investments to upgrade the national distribution system, an investment which he said was necessary to prevent power cuts from occurring.