Finance Minister links new technology to 'a difference' in electricity bills

The new extension to the Delimara power station would save the country about €500,000 a week in power generation costs, Finance Minister Tonio Fenech said yesterday.

"The new technology the government is investing in will fulfil our obligations and make a difference to our electricity bills," he said during a political meeting at Msida yesterday.

Mr Fenech strongly defended the government's decision in choosing Danish company BWSC to build the extension and lashed out at statements by the Labour Party over the Auditor General's investigation into the tender.

"The Auditor General made it clear there was no evidence of corruption in the process but because there was no corruption, the Labour Party said there were irregularities," he said.

Mr Fenech admitted that the Auditor General's report investigating the tender process found "administrative shortcomings". It was obvious that mistakes were made by the Contracts Department and Enemalta because a new process was used but this did not mean there were irregularities or a breach of the law, he added.

Were it for the PL, the extension would have never been built and, in 2011, the government would have had to pay thousands of euros in fines to the EU, Mr Fenech said.

"The country is developing at a fast rate and with Mater Dei Hospital requiring the same amount of electricity consumed by Gozo, we need a power station that does not fail," he said.

Also, the country could not continue attracting foreign investment unless it could provide electricity, Mr Fenech said. "We can't attract investment and not offer a constant electricity supply. We must understand the urgency of this project."

In fact, he added, the PL changed its "misleading" campaign against the extension and no longer described the process as "corrupt" once the Auditor General released his report. "Now they are saying it was a wrong decision," he said.

The technology offered by Bateman, another bidder for the tender, would have cost 11c per unit of electricity compared to the 8.5c per unit in the new extension.

At the same activity, Prime Minister Lawrence Gonzi spoke about his recent visit to the Gulf. "Malta is an opportunity and can act as a gateway for the Gulf and Arab states to get into the European market."

Countries that invested in Malta invested in Europe and would not encounter any obstacles because Malta was an integral part of the market, Dr Gonzi said. In fact, SR Technics was looking into further investment in Malta, he added.

Reacting to Mr Fenech's speech, the PL said the minister had tried to deceive the country about the extension's impact on electricity bills. It said the experts quoted by the Auditor General noted that: "The economics based on more recent prices might tilt the balance in favour of Bateman rather than BWSC."

Through the government's choice, families were going to pay higher bills and end up with more polluted air. "It would have been better if the government explained what it was going to do with tonnes of toxic waste generated by the power station," the PL said.