The government should “come clean” about what is going on with the new gas-fired power plant project, the Nationalist Party said yesterday, following a report that the lead shareholder may be facing financial difficulties.
PN deputy leader Mario de Marco said his party would hold the government accountable for its pledge to have an operational power station by its March deadline.
He said it has since emerged that the leading partner in the consortium behind the project, Electrogas, might not be able to finance the €370 million project.
That partner is Gasol, a UK firm that holds a 30 per cent stake in the consortium. The other shareholders include a local company.
Dr de Marco told a press conference the government should explain whether this issue – if it exists – impacts the future of the project, which is part of Labour’s plan to cut electricity tariffs.
We are not saying that the project should not take place and we have absolutely nothing against the investors involved
Gasol’s latest statement of audited accounts says: “The group does not currently hold sufficient cash or liquid assets to meet its commitments as they fall due for the next 12 months.”
It also states: “The company is likely to be required to obtain significant capital in the future. There is no assurance that it will be able to raise such capital when it is required.”
Dr de Marco said these accounts might have serious implications for Malta “At this stage we need to know what is going on. The government has to explain whether it knew about these problems when it selected the consortium and whether the financial situation of Gasol can have a negative impact on the project.”
Dr de Marco said the Opposition could not understand the government’s reluctance to reveal the contract it signed with Electrogas.
“We are not saying that the project should not take place and we have absolutely nothing against the investors involved,” he insisted.
“However, the government is hiding too many things about this project and in the name of transparency this needs to be settled once and for all.”
Dr de Marco accused the government of creating unnecessary speculation on the project’s future: “We don’t know when the project should be ready, why there is a delay, how long it will take and what is the financial impact of this delay.”
In a statement, Electrogas reiterated its commitment to the project and said: “Each member of the consortium is dedicated to complement the development of the project as quickly as possible and in accordance with all agreements and time schedules agreed with Enemalta.”
Without referring to Gasol’s audited accounts, the consortium said the London-listed company earlier this month raised $30 million (€23.7 million) on the international bond market.
“Each member of the consortium possesses ample financial resources to continue funding the development costs of the project and their respective equity contributions needed to pay for the construction of the project,” it said.
Michael Kunz confirmed to Times of Malta that Gasol is still leading the consortium but declined to state the project’s completion date.