Christian Ehler, the EPP Group Spokesman on the fifth list of the so-called Projects of Common Interest (PCI), has expressed concern over the Malta-Italy gas pipeline project due its possible ties to Yorgen Fenech and Electrogas.

The projects on the list will be eligible for fast-tracked permitting and authorisation procedures as well as for EU financing via the Connecting Europe Facility programme. 

In December, European ministers agreed to allow Malta to apply for crucial European funding to try and subsidise part of the €400 million gas pipeline project. The funding, however, is said to ensure a fool-proof system preventing these funds from benefitting criminal activity. Malta’s Energy Minister, Miriam Dalli, had said that claims that the government would have to pay €100 million to Electrogas if it builds a gas pipeline are “factually incorrect.”

A motion had been filed within the European Parliament's Committee on Industry, Research and Energy to dismiss the PCI list for a number of reasons. The motion, which was tabled by the Greens and GUE parties, was rejected, with 18 votes in favour of it, and 57 against.

While the EPP is in favour of the list, Ehler said, he raised a particular concern. Speaking just prior to the vote on the motion, Ehler asked the Commission to make a statement on one particular project, the connection of Malta to the European Gas Network pipeline interconnection with Italy.

“It is very important that islands such as Malta are also connected to the EU energy network, however the Melita pipeline project is linked with the company Electrogas which is involved in the corruption case against Yorgen Fenech who has been charged with conspiracy for murder of Maltese journalist Daphne Caruana Galizia. During the last Ten-E negotiations, the EPP negotiator and all colleagues insisted that no funds directly or indirectly should go to criminals in accordance to financial regulations. Criminals should not be rewarded with taxpayer money. EU governments benefitting form a derogation like Malta have to ensure that criminals do not benefit from EU funds,” he said.

“This is a legal safeguard that we will continue to defend politically as part of our rule of law campaign: Values are not for sale. We would like to have guarantees from the EU Commission that no EU funds will go to criminals under the PCI list. I also want to take this opportunity to pay tribute to the assassinated journalist Daphne Caruana Galizia.”

Deputy Director-General for Energy at the European Commission Mechthild Wörsdörfer responded.

“Let me respond to the concerns Ehler and others expressed on possible Connecting Europe Facility financing for the gas pipeline between Malta and Italy. The Commission very much shares these concerns.”

“When we discussed the fifth PCI process, the relevant regional group comprising the member states involved recognised that for Malta, there is a need to end energy isolation and that need refers to the integration of Malta in the Trans-European gas network. Based on this assessment, it was decided to include the Malta-Italy gas pipeline also in the fifth PCI list," she said.

“But let me underline, as a PCI, the project remains eligible to apply for Connecting Europe Facility financing, however, it is important to strongly underline that access to Connecting Europe Facility financing is subject to a separate application procedure with an independent evaluation process. Connecting Europe Facility financing for works is very much an exception, as the majority of the PCIs are expected to be commercially viable and to go ahead without public money.”

“Connecting Europe Facility financing for works is only granted if a project meets several criteria which include providing evidence concerning the existence of significant positive externality and, very important also, financial assistance must not be awarded to project promoters, operators or investors who are convicted for fraud, corruption or conduct related to a criminal organisation, and we have also strengthened that and repeated it in the negotiation for the revised Ten-E.”

“The CEF grants will be fully compliant with these provisions of the financial regulations.”