Eleven companies will vie for the gas power station contract that will be awarded by the Government in three months’ time.
The shortlisted bidders were announced yesterday by Energy Minister Konrad Mizzi after the 19 companies that responded to a call for expression of interest last month were evaluated.
These include Dutch energy giant Shell, Italian company Edison and the Chinese State-owned CPECC.
Dr Mizzi said the unsuccessful companies were told why they were not chosen by the selection board.
They will be able to appeal the decision. The legal notice allowing this had not been published yesterday with the minister promising it will be out “in the coming days”.
When asked about concerns on sovereignty, given that Malta’s energy supply could potentially depend on a Chinese State-owned firm, Dr Mizzi said CPECC was one of 11 companies. He said the shortlist was drawn up on the bidders’ technical and financial soundness.
The chosen companies are expected to submit a detailed proposal by the end of July that will include a gas supply and power purchase agreement. The contract will be awarded in September.
The winner will build a gas-fired power station and the infrastructure to handle and store liquefied natural gas that will also be used to run the extension at Delimara built by Danish contractor BWSC.
Dr Mizzi said Enemalta would conduct a full environmental impact assessment of the project with all the studies being done in the summer.
The project description statement was released for public consultation on the planning authority’s website yesterday.
Dr Mizzi insisted the deadline for cutting family electricity bills by next March will be respected, adding the process was “on track”.
The shortlisted bidders are Abener Energy (Spain), State-owned China Petroleum Engineering and Construction Corporation, Daewoo Shipbuilding and Marine Engineering (South Korea), the Electro Gas Malta Consortium, Edison (Italy), Endeavour Energy (Australia), GMR Energy (India), Shell (the Netherlands), Soffimat-Gestamp (Spain), Vitol (Netherlands) and Yildirim (Turkey).
Planning process started
The gas-handling infrastructure needed for the power station will be sited on reclaimed land beneath the oil storage tanks at Delimara.
However, the Government will consider an offshore solution in the same area, according to the project description statement released yesterday.
Whatever choice is made, all options will require additional works at sea such as the construction of a jetty, a dolphin for transportation, and it may also be necessary to reclaim some land.
The offshore solution may include the mooring of a 300-metre-long ship to house liquefied natural gas storage facilities and a regassification plant.
The Government is leaving it up to the successful company to propose the solution it deems best, which can also include a mix of both onshore and offshore LNG facilities.
The 32-page document was published on the Malta Environment and Planning Authority website as part of the environment impact process. The document is open for public consultation until the end of June and reactions will be used to draw up the terms of reference for the environmental studies.
A new, gas-fired power plant will be sited on barren space, previously earmarked for an incinerator, near the Delimara complex main gate. It will use a combined cycle gas turbine.
Total construction time for the CCGT and LNG plant is not expected to exceed 18 months and the target date for both facilities to be fully commissioned and put into commercial operation is April 2015.
All fuel to be consumed by the CCGT plant and the existing Delimara units will be supplied through the LNG plant.
The document reiterates Government’s pledge to close down the oldest unit at Delimara and pull down the huge chimney.