Nexans has been contracted by the government to lay the submarine electrical interconnector linking Malta to the European power grid in Sicily.
The contract is worth €182m. It was signed this afternoon in the presence of Finance Minister Tonio Fenech.
The interconnector is to be commissioned by the end of 2013 and is expected to deliver up to 225 megawatts of electricity. The landing sites will be situated at Maghtab and at Marina di Ragusa in Sicily. From Maghtab the link will be connected to Kappara distribution centre to feed the local power grid. There will be a further 25 miles overland in Sicily.
The cable is expected to have a sub-sea route length of 95 kilometres and will be laid in sea depths of some 160 metres.
The interconnector, as well as the extension of the power station at Delimara, are seen as vital for Malta to keep up with the demand for electricity even as Marsa power station is shut down in two years’ time.
The provision of electricity through the undersea cable will also significantly reduce emissions which would normally be produced by the power stations in Malta.
Nexans was selected after a second round of bidding after the first call for tenders was cancelled in July. The only tenderer at the time, ABB Consortium, was found to be administratively non-compliant with the tender conditions.
Fresh bids were then requested from four shortlisted companies but only three submitted a bid - ABB, Nexans and Prysmian PowerLink . The Nexans bid was €25 million cheaper than second-placed ABB.
“This project will provide Malta with an economically viable source of energy as well as giving us peace of mind,” Mr Fenech said at the signing ceremony.
This project, he said, was part of a €380 million investment by Enemalta and the Government to improve power generation and distribution – the project also including the power station extension and upgrading of the distribution grid.
He noted that demand for electricity has risen from 120MW in 1980 to 230MW in 1990, 354MW a decade ago, and now 400MW, mostly as a result of economic growth.
This project, therefore, was key for Malta to continue to place itself as a competitive investment destination, while also contributing to a better quality of life for the Maltese.