All Enemalta’s 1,530 employees are to be transferred to a new government-owned company in the coming weeks as the corporation starts being prepared for partial privatisation, Times of Malta has learnt.
Sources close to Enemalta said the government was in the final stages of finalising a business plan for the new company.
This will take over from Enemalta so that China’s State company, Shanghai Electric, can buy a 33 per cent stake in it and take full control of one of the corporation’s primary assets – the BWSC power station in Delimara.
Enemalta as we know it will cease to exist
Enemalta Corporation is to become Enemalta Public Limited Company in the next stage of its “business improvement process”, the Energy Ministry confirmed last night.
A spokesman said this was another important milestone in Enemalta’s business plan and would enable the cash injection of €320 million by Shanghai Electric.
“This figure excludes the investment to be undertaken in the energy service centre and the renewables joint venture which will be announced in the future.”
The source said: “In view of the imminent partial privatisation, Enemalta as we know it will cease to exist. Instead, the government will be forming a number of companies to hive off the main activities currently under the corporation’s control. The plan is to then shift the employees from the main company to three other entities: one company responsible for the petroleum division, which is also expected to eventually be sold off to the private sector; a company for the generation and distribution of energy; and another for the development of energy from new resources.
This transaction will also impact the future of all Enemalta workers even though they will technically remain on the government’s books.
According to the sources, the new government-owned company, which will be responsible for all current Enemalta employees, will be similar to the one that took over the former dockyard workers.
They will then be asked if they want to work with any of the three new companies or get an alternative job with another government entity.
“The basic pay of all employees will be guaranteed,” the source said. “However, conditions such as shifts, allowances, overtime and other benefits are still up for discussion.”
The basic pay of all employees will be guaranteed
The ministry spokesman said the government was committed to retaining all employee conditions and those stipulated in the various collective agreements “will be honoured”.
A General Workers Union spokesman confirmed that the union, which represents the majority of the corporation’s workers, had been informed about the government’s plans last week.
“We have been given preliminary details on the plans but are still awaiting details,” he said.
Asked whether the union was satisfied with this partial privatisation, in view of the Prime Minister’s declaration before the election ruling out any form of privatisation, the spokesman said this was a political matter the union was not interested in delving into.
“Our interest is the future of the workers. We have been given a guarantee that all Enemalta’s workers will remain on the government’s books and this is what interests us most. We are still waiting for the government to come back with the detailed proposals,” he said.
GWU general secretary Tony Zarb had, following a meeting in which Joseph Muscat addressed Enemalta employees before the election, said he was satisfied with Labour’s promise that “the privatisation of Enemalta was being ruled out”.
Besides the 33 per cent stake, at a cost of €100 million, Shanghai Electric will be taking ownership of the corporation’s newest generation plant – known as the BWSC – for another €150 million. The Chinese will invest another €70 million to convert the plant to gas and sell the power produced back to Enemalta.