The European Commission has not received any formal objections to the use of EU funds for the upgrade of two boilers at Enemalta’s power plant in Delimara.

In November, the Commission had opened a case over this aid, which was requested by Malta, and published the details widely to give potential objectors until mid-March to present any formal complaints.

“Although we were expecting some objections from rival companies, we have not received any and this should clear the way for the Commission to approve this state aid,” a source in Brussels said.

“The lack of objections is a good sign. However, other aspects of the Maltese project are still being evaluated and the Commission has still to make up its mind.”

Malta filed an application in 2009 to use €15.5 million of EU funds in an €18.3 million Enemalta project to modify two of the existing boilers at the Delimara plant so that emission levels can be cut and come in line with EU rules. However, the Commission said the funding could amount to unfair competition in the EU market.

The government argued that Enemalta could not compete with other suppliers on the continent, insisting that this made the company eligible for the funds.

According to the Commission’s guidelines, member states can only grant up to 15 per cent in aid to such projects. However, Malta wants to finance 85 per cent of this project through EU funds.

If Brussels does not give the final green light, Enemalta would have to finance the whole project through its own resources, putting a bigger financial strain on the company which is already deeply in the red. According to recent information given in Parliament, its accumulated debts amount to €577 million.

Enemalta has already taken various measures to reduce emissions from both its power plants in Delimara and Marsa over the past few years. It is currently building a €200 million extension at Delimara that works on newer technology.