Chinese state-owned news agency Xinhua is reporting that Bank of Valletta has loaned Shanghai Electric Power €51.5 million for the Delimara power station project.

The news was first broken by columnist Daphne Caruana Galizia. 

SEP has bought a 33% stake at Enemalta and has also acquired a 90% stake in the BWSC plant, also called D3, which it plans to convert to run on gas instead of heavy fuel oil.

Xinhua reports that the 366 million Yuan loan agreement with BOV was signed on 30 September. The news report was only published in Chinese.

The project is expected to last around ten months and, according to the Chinese news agency, will convert the D3 plant to run on natural gas, thus reducing greenhouse gas emissions and pollution. The loan will be issued in batches.

Xinhua noted that in December SEP bought a 33% stake of the Maltese utilities company for €100 million and also invested €150 in the BWSC plant. Malta and China also plan to set up service centres as well as the International Energy International Renewable Energy Development Corporation.

Xinhua credits the SEP share buying for the positive credit rating revisions by Standard and Poor’s. “Standard & Poor's said that Shanghai Electric energy investments will help the Maltese Government reduce debt and the energy tariffs while promoting economic development.”