Energy Minister Konrad Mizzi said the deal with Shanghai Electric was a strategic investment which had put Enemalta back on its feet – and once hedging terms ended, the savings would be transferred to consumers.

Winding up the debate on the government motion to approve the deal, Dr Mizzi said this was not a privatisation exercise as the majority shareholding remained in the government’s hands. The chairman, the majority of the board members and the management team were still appointed by the Maltese government. Shanghai Electric had acquired only a 33 per cent stake.

The Opposition amendment to the motion was defeated by 28 votes in favour and 33 against. Nationalist MPs Albert Fenech and Tonio Fenech were paired with Labour MPs Anton Refalo and Minister George Vella. Government members Carmelo Abela, Owen Bonnici, Ian Borg and Josè Herrera were absent.

The government motion was carried by the same margin – 33 votes in favour and 28 against. Dr Mizzi spoke about how Enemalta had been in deep financial crisis and risked bringing down the banks and the country. Much had been achieved in 20 months. Energy tariffs were reduced; the government had started addressing the debt inherited from the former government. Enemalta had received a massive cash injection of €250 million.

Half of the debt was now being settled and the remaining debt guarantees had been reduced in proportion to the shareholding structure. Through more investment by the Chinese, by June 2016 the BWSC plant would be converted to gas. Heavy fuel oil would be eliminated but gas oil would remain as an alternative for emergency use.

Enemalta was no longer a corporation but a plc run on commercial lines. It had retained dispatch rights and could buy its electricity supply from the cheapest, as pointed to by a computer model.

At the same time the Chinese could not sell electricity from the BWSC plant to another country without Maltese government approval. Dr Mizzi said the joint ventures formed between Enemalta and Shanghai Electric had been formed and the relevant companies registered.

One joint venture company would develop renewable energy equipment in Europe, and feasibility studies were under way. Another company would absorb Enemalta workers and train them for major and medium sized projects locally and abroad.