The government has just published a supposed ‘agreement’ with Shanghai Electric and Power Company for the privatisation of Enemalta and the BWSC power station.

What has, in fact, been published is a vague and sketchy document that raises more questions than it answers.

It refers to other agreements that are being kept hidden from the public and which constitute the real contract by which the government is effectively handing over control of our energy sources to the Chinese government, through Shanghai Electric.

What has been presented to us is a repetition of general principles that were already known to the public with no specific details whatsoever.

It is a sham and ambiguous.

Shanghai Electric is promising to convert the BWSC plant to gas but, again, there is absolutely no detail regarding time limits, how it will be done and what happens if it is not.

There is, in fact, a reference to certain “ancillary agreements” regarding this point but they are still hidden.

What is probably the most astounding aspect of this agreement is that the government and Shanghai Electric may enter into other commercial contracts (even with third parties?) that would prevail.

The agreement seems to have been drafted purposely so that Shanghai Electric can never really be accused of breaching it

This effectively renders the published agreement a worthless piece of paper because it is saying there are or will be other “commercial agreements” that will take precedence over it.

More importantly, the government demonstrates utmost disrespect towards Parliament when it expects the House to discuss a ‘contract’ that is subject to other undisclosed agreements, effectively rendering this document not worth the paper it is written on.

The agreement lays down that Shanghai Electric can supply electricity only to Enemalta. What if it decides to supply it also to some other company? The agreement makes no mention of what would happen.

It is not plausible that Shanghai Electric would have agreed to such an obligation without a corresponding commitment by Enemalta to buy electricity from it. And, yet, this contract is totally silent on what should be an important issue.

Are there other ‘secret’ agreements between Enemalta and Shanghai Electric that have not been published?

Another worrying aspect is the reference to a “power purchase agreement” between Enemalta and Shanghai Electric.

This agreement is a crucial one because it defines all the commercial terms and conditions governing the purchase of electricity. Where is this agreement and what does it provide for? Why is it being kept hidden?

The agreement is an international transaction and should contain details of how potential disputes are to be solved.

Will it be subject to Maltese or Chinese laws, for example?

This is especially relevant because China is not an EU member State and there is no international court with jurisdiction over any matter arising from the agreement.

Has our government engaged a Chinese lawyer to advise it on the rights of Enemalta and the obligations of Shanghai Electric under Chinese law?

No agreement should have been signed before obtaining such specialist advice.

What has been published is not a contract but a sham, an insult to the Maltese population and a total show of disrespect to Parliament, which was expected to discuss what is no more than a vague memorandum of understanding, not a contract.

It is unbelievably superficial and seems to have been drafted purposely so that Shanghai Electric can never really be accused of breaching it.

It is truly embarrassing to witness the sale and control of our energy being made on the basis of this extremely amateurish document.

Either the Maltese government has other agreements it does not want to show us or the Chinese must think they are dealing with a bunch of morons.

George Pullicino is a Nationalist MP.