Enemalta has set up a subsidiary company to kick-start the planning process for the new gas-fired power station at Delimara, Times of Malta has learnt.
It will be the entity with which Enemalta will enter into the power purchase, gas supply and related agreements
The company, Malta Power and Gas Ltd, will eventually be transferred to the successful bidder for the power station and related gas storage and processing infrastructure.
MPG is a special purpose company whose main objective is to supply power and gas to Enemalta, according to a spokeswoman for the Energy Ministry.
“It will be the entity with which Enemalta will enter into the power purchase, gas supply and related agreements,” she said.
A shortlist of 11 bidders was drawn up last month and the Government aims to award the contract by September.
However, until the successful bidder is chosen and the deal finalised, the Enemalta subsidiary will file development applications with the planning authority and carry out any necessary studies, the spokeswoman said.
“Moreover, the [subsidiary] company will also enter into a development agreement with Enemalta Corporation in respect of certain works that need to be executed on the site that will be leased to it,” she added.
Although she did not specify what the works were, the project description statement released by Enemalta last month made it clear that infrastructural works such as land reclamation, dredging and the construction of a jetty may be necessary.
The company was set up last month with Enemalta Corporation being the principle shareholder and Aviation Fuelling Services Ltd (an Enemalta subsidiary) holding a nominal one share. The registered office is at Enemalta headquarters in Marsa and the company’s directors are notary Charles Mangion, a former Labour MP and current Enemalta chairman, and Louis Giordimaina, Enemalta chief executive.
The decision to set up the subsidiary company formed part the Labour Party’s plans to speed up the process for the new power plant by starting the planning procedures and studies even before the bidder is chosen.
Meanwhile, the consultation period on the project description statement closed last week.
The planning authority is now expected to draw up the terms of reference for the necessary environment-impact studies.
When announcing the short-listed bidders last month Energy Minister Konrad Mizzi said the intention was to have the studies completed by September.
The Government wants a fast-track planning process to stick to strict self-imposed deadlines for delivery.
The successful bidder will be contractually bound to deliver the gas infrastructure in 18 months and put up an upfront payment, which the Government will use to lower utility tariffs for households as from March next year.
Enemalta will buy electricity from the bidder and natural gas to fire the plant built by Danish company BWSC, which it will continue to own.
ksansone@timesofmalta.com