The Malta Independent 24 April 2024, Wednesday
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Contracts kept secret: Government’s transparency pledge decidedly opaque

Jacob Borg Sunday, 25 January 2015, 10:30 Last update: about 10 years ago

The Prime Minister was elected on a pledge to lead the most transparent government in a generation, yet several major contracts that have a bearing on the country's future have been kept secret.

The Malta Independent on Sunday has filed freedom of information (FOI) requests for the €320 million contract signed between the government and Shanghai Electric, including the power-purchase agreement, as well as the agreement signed with the new public transport provider Autobuses de Leon.

Although the €320 million is being pitched as an investment in Enemalta, it comes at a price. The publicly-owned energy provider will be partly-privatised, with Shanghai Electric taking a 33 per cent share in the company and the government retaining a controlling 66 per cent share.

This paper has also requested details of the lease agreement that signed over a chunk of land at Delimara to the Electrogas consortium, which should be delivering an operational power station by June 2016.

An FOI request for the €370 million Electrogas contract was rejected by the government.

Energy Minister Konrad Mizzi has also made mention of an "interlocking agreement" signed between the government, Shanghai Electric and Electrogas. This agreement has not been published.

According to Dr Mizzi, the government will not be under any obligation to buy from any particular plant.

The total value of all the contracts being kept under wraps is at least €730 million - the €370 investment pledged by Electrogas, the €320 investment by Shanghai Electric and the €40 million investment by Autobuses de Leon.

The Autobuses de Leon agreement also includes a government subsidy of €23 million for 2015 and €29 million for 2016.

 

Energy debate fizzles out

The Parliamentary debate on the Shanghai Electric agreement lacked substance, due in no small part to the lack of information on the contract signed.

Opposition Leader Simon Busuttil questioned if the government had something to hide. He also queried the lack of deadlines as to when the BWSC plant will be converted to gas.

Shadow Minister for Justice and Democracy Jason Azzopardi said that for all the talk about the previous administration's lack of transparency, the PN government of the day had published major contracts.

The contract signed with BWSC was published on May 2010 and consisted of 11 volumes, excluding a small piece that was commercially sensitive. The 128-page contract was also published by the government on 3 October 2011, Dr Azzopardi said.

In reply, Prime Minister Joseph Muscat insisted that the €320 million deal had saved Enemalta from the brink of bankruptcy.

He said that the government had come through on its promises regarding the energy sector, in that electricity and water bills have been reduced by 25 per cent and five per cent respectively.

 

 

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