Nationalist MP Kristy Debono today called the €88 million loan guarantee given by the government to Electrogas- the consortium building the new power station - a “dangerous gamble to save the government’s face.”

Addressing a press conference, she questioned if BOV carried out the necessary due diligence on Electrogas prior to granting the loan, and asked what will happen if the European Commission does not approve the security of supply agreement.

Shadow minister for the economy Claudio Grech questioned why the government turned down a freedom of information request by The Malta Independent on Sunday on the grounds that publishing details about the loan guarantee may have  “a substantial adverse effect on the ability of the government to manage the Maltese economy.”

Mr Grech said this response contrasts with the government’s claim that all is in order with the “unique” loan guarantee.

The consortium signed an 18-year deal with the government to supply gas for the new power station, meaning it will have an impact on successive governments therefore full disclosure is vital, Mr Grech said.

He said the government has an electoral mandate for the project and the Opposition wants it to be implemented in a financially responsible manner.

The government quoted a number of opt-outs in the freedom of information act when turning down The Malta Independent on Sunday’s request for a copy of the loan guarantee.

Apart from potentially creating turmoil in the economy, disclosure of the document may also “have a substantial adverse effect on the financial or property interests of the government or of another public authority”.

It was also deemed that “the public interest that is served by non-disclosure outweighs the public interest in the disclosure.”

The unprecedented €88 million loan guarantee – which was only revealed by the media – has raised questions as to whether this was a unique case or whether other big projects will also qualify for such a guarantee.