An investment worth €320 million by Chinese firm Shanghai Electric Power in Enemalta was concluded this afternoon.

Shanghai Electric will be taking a 33 per cent stake in Enemalta for which it will pay €100 million and purchase a 90 per cent shareholding in the BWSC plant for €150 million.

The Chinese company will also front the conversion cost of €70 million to shift the BWSC plant from working on heavy fuel oil to gas.

The deal was signed at a ceremony held at Auberge de Castille.

This is the first investment by Shanghai Electric in Europe.

Prime Minister Joseph Muscat said this wasa very important day because it put Malta's energy sector on a sound footing and strengthened its links to the globalised economy.

"This is an example of how in a relatively short time we turned a problem into an opportunity. From inward looking we will be looking at providing services to the region.

"Negotiations were difficult but were always done in a spirit of cooperation," he said.

He told Enemalta workers "this will strengthen your jobs and offer a future".

Energy Minister Konrad Mizzi said the greement will be tabled in Parliament and the government wished that a debate on it would be held next Wednesday.

He said when asked that his wife was not involved in the deal.

Enemalta will not be obliged to buy a minimum of electricity from the BWSC plant, retaining all dispatch rights. This means the company will determine from where it would buy electricity and at what quantities.

A power purchase agreement will be signed between Enemalta and BWSC, with Shanghai being obliged to maintain the facility in operational mode.

The money from the deal is expected to be transferred by the end of the year and will see Enemalta’s debt drop to below €300 million.

The government will guarantee the portion of debt equivalent to its shareholding in Enemalta.

Enemalta’s board of directors will be made up of four government nominees and two members appointed by Shanghai Electric. The chairman will be appointed by the government and Shanghai will nominate the vice chairman.

The agreement also stipulated the creation of two companies with shareholding by Shanghai and Enemalta.

International Renewable Energy Development will see Shanghai hold a 70 per cent stake. This company will invest in renewable energy projects in Europe and work is expected to start on two projects next year.

A second joint company will be the Energy Services Centre in which Enemalta will have a 70 per cent stake. The centre will service all the plants Shanghai owns in the Middle East and Africa.

The agreement can be seen in the pdf link below.