The “draft” security of supply agreement for the provision of gas by the consortium building the new power station has not yet been signed, Energy Minister Konrad Mizzi said today.
A 22-month €450 million bridge loan has been given to the Electrogas consortium, with the government guaranteeing €360 million of this loan on the strength of the security of supply agreement, which has yet to be approved by the European Commission.
Replying to questions at a press conference today, the Energy Minister said there “might be some tweaks” put forward by the European Commission to the security of supply agreement.
Dr Mizzi said the government was advised from day one to seek approval from the European Commission about the security of supply agreement, instead of going ahead and signing it.
Both Dr Mizzi and Finance Minister Edward Scicluna expressed their confidence that the European Commission will approve the agreement.
The “temporary” loan guarantee was required in order for the project to continue moving ahead pending this approval.
The Ministers made it clear that the cost of the project is being borne by the private sector and not the taxpayer.
Electrogas owners should guarantee loans with their own assets -AD
In view of the latest government guarantee to Electrogas, AD Chairperson Prof Arnold Cassola said: "The sum of 360 million euros which the government is guaranteeing is worth one third of the whole value of EneMalta. Since when does government guarantee for private investors with public money? Is government in some way indebted to these investors to give such preferential treatment? Will these investors be further facilitated to build towers in Sliema and Mriehel?"
"The private investors should guarantee with their own assets. Siemens has loads of assets world wide; Tumas Group can use the Portomaso Development (including the Hilton) and its large number of hotels such as The Dolmen at Bugibba as guarantee while Gasan Group could make use of Townsquare Development and other assets."
"Joseph Muscat and Konrad Mizzi should stop playing Russian roulette with the Maltese taxpayers' money."