Enemalta Corporation has received the first €2.5 million instalment from the consortium chosen to construct the new gas-powered electricity plant, the Energy Ministry said.
Under the agreement signed last year, Electrogas will be paying the corporation €30 million in 12 monthly instalments.
This development came in the wake of the successful conclusion of the tri-partite talks between Electrogas, Enemalta and Shangai Power Electric, which will be converting the existing BWSC Delimara plant to gas. The Chinese company has also agreed to acquire a minority stake in the corporation in return for a cash injection of €320 million.
The Energy Ministry noted that the payment was part of a plan to make Enemalta financially viable while reducing utility tariffs for domestic and commercial users by 25 per cent.