Enemalta and the Danish power plant supplier BWSC have withdrawn claims for damages against each other.
A shameful statement intended to rewrite history- Tonio Fenech
Energy Minister Konrad Mizzi said in a statement to Parliament that the amount BWSC stood to gain from suing Enemalta was far greater than what Enemalta could have hoped to retrieve from BWSC.
Answering questions after his statement – often interrupted by shouting from the Opposition side – Dr Mizzi said that BWSC had made €13.2 million in claims because the project was a year late and another €1.1 million consisting of interest for €8.2 million withheld by Enemalta.
He said that while some claims by BWSC would fall apart, they had a strong case on many others.
The agreement provided that BWSC pay €700,000 for the chemical agents while they waived the payment of interest fees by Enemalta.
Enemalta’s claim of €8.2 million on equipment that had to be operational meant only part of an engine was still undelivered when eight others were fully functional. He insisted that the maximum amount that Enemalta could have obtained was €400,000.
Dr Mizzi said the €4 million claim made by former Prime Minister Lawrence Gonzi because the Marsa power station was still in use never materialised because there was no reference to this power station in the BWSC contract.
Enemalta had told the Government that no such claim could be made. Former Finance Minister Tonio Fenech, at the time responsible for Enemalta, was fully aware of the situation. Dr Mizzi called on Mr Fenech to produce the document showing that such a claim had been made.
Dr Mizzi said it was not his duty to defend the “mess” he had inherited from the previous administration.
The Opposition spokesman would have done better to look at the details.
The previous government had signed the BWSC agreement, worth €170 million, without involving any external lawyers but relying only on Enemalta’s internal legal team.
BWSC were given guarantees amounting to €16 million while Enemalta’s guarantees from BWSC amounted to only €8 million.
He said that €5 million in spare parts and another €3 million on the length of the chimneys were not included in the final contract. These were never delivered but BWSC never reduced its bid.
The PN government had given an €8 million gift to BWSC. In 2012 alone, Enemalta had at least €1 million in spare parts.
Dr Mizzi said that, upon taking office, he had found that Enemalta had not paid any duties to the Government and was deep in debt. The Government was committed to turning the corporation into a profitable one in three years’ time with carbon dioxide emissions radically reduced. He concluded that he was ready to publish the agreement reached with BWSC once he obtained legal advice on the issue.
Dr Mizzi’s replies were more than once interrupted by shouting from Opposition members. At one time he requested the Speaker’s protection.
Questions were put by Mr Fenech, George Pullicino, Claudio Grech, Carmelo Abela and Deborah Schembri.
Mr Fenech said Mr Mizzi’s statement was shameful and was intended to rewrite history and to offer an excuse for the fact that the Government had decided to drop all claims against BWSC.
He invited Dr Mizzi to table the reports that brought him to this conclusion.
If heavy fuel oil was the wrong choice, had the Government changed it to diesel or was it still making use of HFO? What were the emission levels?
Was Dr Mizzi sure of the €6 million figure he was quoting regarding damages allegedly suffered by BWSC for forced delays?
He said that Enemalta stood to gain around €17 million, including €4 million for extra fuel for the period when the Marsa power station had to be used.
On the other hand, BWSC’s claim stood at just €10 million, which would have fallen through at arbitration. Dr Mizzi’s statement was only intended to make the previous government look bad.
He said Dr Mizzi had gone to Parliament to explain he had conceded so much in less than 100 days in Government. He ought to be ashamed of himself for making such a statement.