Investment Minister Tonio Fenech yesterday assured Parliament that Malta could meet its winter electricity demand even without the Delimara power station extension, which has been switched off because of damage to its steam turbine.

The Government will not defend any contractor and will enforce a €1.6 million per week penalty if BWSC do not honour obligations

In a statement, Mr Fenech said that winter power demand was on average 330 megawatts with the highest peak being 368 megawatts.

Delimara 1 (the first part of the Delimara power station) was able to generate 300 megawatts while the two boilers and the gas turbine currently in use at the Marsa power station generated 157 megawatts. This meant that the anticipated demand could be met.

Mr Fenech said the Government would not defend any contractor and would enforce a €1.6 million per week penalty (as stipulated in the contract) if BWSC did not honour its contractual obligations on time.

Earlier, the minister said that Enemalta had set up a testing programme to ensure that the project worked perfectly before taking over the plant. BWSC was still responsible until the conclusion of this programme. The damage was situated in the steam turbine and was rather substantial.

The first indication of damage was on October 7, when a stop valve did not close as it was supposed to. Between October 11 and 12, BWSC dismantled the equipment and found part of a filter in the valve. At the time Enemalta sought initial legal advice.

On October 12, damage was found to the turbine’s inlet blades but the extent of the damage was not yet known. Enemalta sought further legal advice.

The steam turbine was eventually sent to the manufacturer to be repaired in the UK by BWSC.

The Government never sought to hide the incident as implied by the Opposition. Enemalta first needed to know all the facts and establish its legal position. On October 16, Enemalta issued a statement of facts as were known up to then and more details were given at a news conference last Saturday.

Any comments before would have pre-judiced Enemalta’s position.

The damage was not caused in the innovative parts of the power station extension but to a turbine in the combined cycle, the same as used by the rest of the power station in Delimara.

Mr Fenech explained that Enemalta had the option to make a partial takeover (excluding the steam turbine). If it had done so, it would not have been able to make a full unit valuation of the plant as it would have already commenced operating for a number of months.

Such an option would have also required Enemalta to pay 90 per cent of the last instalment and it could have lost the right to demand payment of penalties for the non-delivery of the plant since penalties would have been reduced to the portion which had not been taken over.

The minister said that immediately after the taking over of the plant, BWSC would be required to conduct all necessary repairs for faults that could result within 12 months. Commenting on issues raised in the media, the minister said that the white dust seen in a number of photos was an isolated incident: it consisted of five per cent ash and 95 per cent sodium carbonate which was not toxic.

Opposition Leader Joseph Muscat asked whether the contract was flawed in the light of the situation in which the Government had to pay €8 million to BWSC while the latter could pay the Government around €32 million in penalties.

He also asked the minister whether he could table the agreement, in which BWSC accepted responsibility, if such agreement was made in writing.

Dr Muscat asked Mr Fenech to state whether BWSC would pay for any additional expenses such as those to be incurred by Enemalta to purchase oil to operate the Marsa power station and to clarify which court (English or Maltese) would preside over the case.

He also asked for the report containing the analysis of the white dust found. “Was a report filed with the Occupational Health and Safety Authority?”

Nationalist backbencher Franco Debono asked whether BWSC had any problems in accepting responsibility when the plant was still in the company’s possession?

Why was no investigation carried out by the police? Who would assume the political responsibility?

Dr Debono said consumers were paying the highest utility tariffs and getting a poor service.

Other questions were asked by Labour members Anġlu Farrugia, Charles ­­Mangion, Leo Brincat, Marlene Farrugia and Joe Mizzi, and by government Whip David Agius.