A European agreement has been struck to provide funding for Malta's long-anticipated project to connect the island to the European electricity grid, after the European Commission’s previously unsavoury proposals on distributing e3.5 billion for energy projects were amended on Wednesday.

Malta had fiercely objected to the Commission’s original proposals, which had all but snubbed the country’s dire need, as a completely isolated member state in energy supply terms, to secure supply through such a grid connection.

Through the amendments to the Commission’s original proposals, Malta’s funding allocation has now trebled to at least e20 million. The new project, Electricity interconnection Malta-Italy, has been added to the list of projects to be funded by the remaining unspent portion of the EU budget.

The hard-fought increase in Malta's allocation came about following a direct intervention by Prime Minister Lawrence Gonzi and a series of meetings undertaken by Malta’s Permanent Representative to the EU Richard Cachia Caruana.

Following positive discussions between EU energy ministers at Thursday’s Transport, Telecommunications and Energy Council, the amended proposal is expected to be discussed on Monday during the General Affairs and External Relations Council, with a view to reaching a common agreement amongst member states at next month’s summit of EU leaders.

A spokesperson for the Office of the Prime Minister yesterday confirmed the funds to be allocated would be taken up by a project submitted by Malta.

Moreover, as the Electricity interconnection Malta-Italy project will be connecting Malta to the European energy grid, seeing how Malta is isolated from the network at present, the interconnection will be of exclusive benefit to Malta and its citizens.

The message negates that being conveyed by Italian Economic Development Minister Claudio Scajola, whose government had been similarly perturbed over the Commission’s proposed allocations, and who claimed the project as among the victories for Italy this week in the in the wake of Thursday’s meeting.

The OPM, however, confirms: “The reference to Italy, or rather Sicily, is solely made on the basis that it will be Malta’s link to the European electricity grid. In light of the above there is no question that it is Malta that will utilise the funds in question.”

The Commission’s initial proposals had raised Malta’s ire, and in addition to Dr Gonzi’s direct intervention in the matter, Malta had also raised strong objections at Committee of Permanent Representatives (COREPER) level.

Amongst a raft of arguments forwarded, Malta had insisted the way in which the Commission has proposed distributing the e3.5 billion in energy funding goes against both the spirit and the scope of December’s Council conclusions in the area of energy, as well as the European Economic Recovery Plan through which the funds are being channelled.

The grid interconnection project will also be an essential component of the offshore wind farm project being contemplated by the government, since excess electricity generated by the wind farm would be “sold” to the European grid.



dlindsay@independent.com.mt