Updated - Enemalta’s 1,530 employees are to be transferred to a new company as the corporation prepares for partial privatisation, with  China’s State company Shanghai Electric buying a 33 per cent  and the BWSC power station in Delimara.

Enemalta Corporation is to become Enemalta plc 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.

The government will also 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.

According to informed  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.

The workers will 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.”

However, Prime Minister Joseph Muscat when questioned this morning, said this was not strictly privatisation, since the government would retain the majority stake. He also insisted that nothing would change for the workers and they would retain their current conditions. (See video)