The gas power plant project was “paused”, the government admitted yesterday, adding it was considering how to integrate the new Chinese investment in Enemalta.

At the same time, Energy Minister Konrad Mizzi is standing by the Prime Minister’s decision to remain silent about when the new plant will be up and running and reiterated this would be announced in the coming days.

Before the election, Labour promised to have the power station in place by March 2015, to be able to produce cheaper energy and lower tariffs.

However, Dr Mizzi yesterday conceded the plans had changed due to the opportunity that surfaced after the election – when Shanghai Electric agreed to invest €320 million in Enemalta.

“We made a conscious decision to pause the power plant project to integrate the investment by Shanghai Electric,” he said.

“In my opinion, this was the right decision, even though I am ready to face the political flak over it.”

In my opinion, this was the right decision, even though I am ready to face the political flak over it

Asked by Times of Malta whether he meant he would resign, since the government’s pledge to deliver the power station by March will not materialise, Dr Mizzi replied: “We never spoke of resignations. This is an issue of choices. We could have proceeded and delivered the power plant in 18 months.

“However, this opportunity [Shanghai Electric] presented itself and we made a responsible choice.”

Until a few weeks ago, both the Prime Minister and Dr Mizzi insisted that the power plant was on track, to be completed by March. Then, last month, Dr Muscat said the gas plant had been delayed “by a couple of months”.

Asked to give a time frame for when the plant would be ready, Dr Mizzi would not give any dates.

“We will be able to announce the project’s milestones in a few days,” he insisted.

On financing the new tariffs, Dr Mizzi said that, despite the delay in the power station, the lower rates would be financed through a seven-year plan already agreed in principle between the government and the Chinese company.

He said that, through this plan, Enemalta would use a mix of energy sources – including the new power plant, the BWSC plant and the interconnector – to charge the tariffs announced.

He said the plan would also allow Enemalta to be able to turn around its financial situation and even start registering profits.