PM willing to release contract only if...

The Prime Minister is willing to publish the controversial Delimara power station extension contract, which he admitted he had not seen, provided Danish company BWSC agreed.

"I have no difficulty in publishing the contract but only if we have permission from the other party involved - BWSC. There is a confidentiality agreement in the contract and we have to honour it," Lawrence Gonzi said.

The contract was criticised by the Auditor General in a report on the tendering process of the power station extension.

The Auditor said the contract, signed behind closed doors last year, was drawn up hastily to the extent it had track changes still visible.

"A copy of the contract was passed on to the Auditor and I was surprised to see this vote of no confidence in his work," Dr Gonzi said, when asked whether he would publish the document.

Only last week in Parliament, Finance Minister Tonio Fenech rejected a request by the opposition to table the contract, insisting the contract and BWSC's bid were of a "confidential nature".

Public Affairs Committee chairman Charles Mangion has said he would ask for a copy when the House committee started debating the Auditor's report.

Dr Gonzi expressed surprise at Dr Mangion's words: "I'm sorry to hear Dr Mangion say these things as his comments cast a shadow of doubt over the Auditor's work."

The report, which found no hard evidence of corruption but serious administrative shortcomings in the tendering process, led to a barrage of harsh criticism from all sides, including the Labour Party and former Nationalist minister Michael Falzon.

Dr Gonzi insisted he and Mr Fenech had never criticised the Auditor General's work. "We never criticised the report. It was the Labour Party that didn't accept it."

The contract was for the supply of a 144-megawatt diesel power plant at the Delimara power station for a value of €165 million. An outline proposal for spare parts and a technical support agreement was included in the contract for an additional amount of €18 million.

Asked whether he thought the controversy surrounding the contract had dented his government's credibility, Dr Gonzi said the lack of provision of electricity was what made the government lose credibility.

"That is why we really need this extension project up and running as soon as possible. Had the government opted for the bidder the opposition seems to be backing, bills for consumers would increase by 30 per cent," he said.

Dr Gonzi admitted he had not seen the controversial contract before it was signed but added this had obviously been vetted by Enemalta's lawyers.

Moreover, the Auditor's report was drawn up after he had seen the contract.

Dr Gonzi said the government respected the Auditor's findings and would implement the recommendations he had made.