When the Labour Party pledged to slash electricity tariffs by getting a gas company to build a new power station within two years, serious doubts were raised about the timeline.

The call for expressions of interest issued by the Government this month explains the scheme devised to facilitate the process.

According to the yet-unpublished document, the Government will set up a “special purpose company” that will apply for the necessary planning and environmental permits before the chosen bidder is awarded the contract.

The successful bidder will then take over the special purpose company and start building the necessary infrastructure.

At that point, it will be required to make an up-front payment to Enemalta for the work undertaken, which will be specified to bidders at the next stage of the process.

The document says the special purpose company would provide and own all the necessary site studies that will be distributed to bidders in the second stage of the process: the request for proposals.

Set up as a subsidiary of State utility Enemalta, the special purpose company will also start the process of undertaking an environmental impact assessment of the site and the associated health and safety audits, concurrently with the planning and permitted process at the Malta Environment and Planning Authority.

The Government hopes to have the relevant permits as early as possible so that construction can start in October, once the contract is awarded.

“The new plants to be constructed are to incorporate all recommended techniques to ensure compliance with Europ-ean Union and Maltese environmental requirements regarding air, marine, thermal, landfill, vibration and noise pollution as well as any such legislation that can be expected to come into force in the near future,” the document says.

It adds that the power generating facility would also be soundproofed.

The call for expressions of interest leaves bidders with relative flexibility as to the options they can propose.

“Candidates remain free to propose solutions which they can prove are capable of meeting Enemalta’s supply requirements,” it says, adding that they could also propose “multiple solutions”.

So how can the special purpose company apply for permits for a project that has not yet been chosen?

According to Energy Minister Konrad Mizzi, the company will base itself on “generic para-meters that are likely to reflect the proposals expected to be received by bidders”.

“If any proposals do not fit the planning process commenced, bidders will be free to submit an application to amend the permits to fit their proposals,” he added.

Dr Mizzi has refused to publish the call for expressions of interest, which he says has already been picked up by around 40 interested parties.

However, The Times has revealed a number of aspects outlined in the document, including the fact that it envisages a fixed-price contract for “a minimum of five years” rather than the 10 years promised during the campaign.

The document also leaves no room for aggrieved bidders to appeal this stage of the process, though they can seek limited damages from court.

This goes contrary to what Dr Mizzi said on Bondiplus just this week, though his spokeswoman clarified that an appeals process would be set up at the second stage, the request for proposals.

cperegin@timesofmalta.com