The €88 million loan guarantee to the consortium building the new power station is a temporary measure until the European Commission approves the security of supply agreement, the Energy Ministry said.

The bank guarantee was subject to state aid rules and the consortium had to provide a letter of credit to the government.

The guarantee was given under specific conditions and in respect of all the internal controls and checks of the auditors, the Ministry said.

While the Opposition is publicly criticising the project, behind closed doors former finance minister Tonio Fenech admitted that “intelligent” people believe the government is making a success of the energy sector.

Success in this sector is build upon the reduction in energy tariffs, the Ministry said.