Energy Minister Konrad Mizzi told Parliament yesterday that an independent board would be set up to consider any appeals by bidders in Enemalta’s call for expressions of interest for a power and gas purchase agreement.

The decision was welcomed by former finance minister Tonio Fenech, who was responsible for Enemalta during the previous legislature. He said the Opposition had been calling for this remedy because having the bidders go to court, to only be refunded their costs if their claim was upheld, had been insufficient.

Mr Fenech asked, however, why the appeals procedure was not being referred to the Contracts Committee, which had experience in this matter and was respected.

Once the Government was setting up a committee, how would it operate, what technical competence would it have, and what remedy would be given if a bidder’s appeal was upheld?

Dr Mizzi said the Government remained committed to reducing utility tariffs by 25 per cent for electricity and five per cent for water under the timelines as promised before the election.

This drop would be achieved through a mix which also included the interconnector with the Euro-pean mainland.

He expressed his disappointment at Mr Fenech’s remarks because, outside the House, he had only shown disagreement on the process adopted, claiming that other issues were a matter of choice.

Dr Mizzi said that if the Nationalists had been returned to power, their only alternative would have been to raise tariffs by 30 per cent.

He said the Government was more than satisfied with the 19 bids presented as it had not expected expect more than 10. The document was structured on international lines and the Government was committed to keep these world class standards. A full environment impact assessment would be conducted to address all environmental issues.

All stakeholders, including the neighbouring local councils, the fishing community and other interested parties would be involved in the process. The contractors awarded the tender would have to fulfill their corporate social responsibility.

Dr Mizzi said that the Government had good intentions and would surely not choose the contractor through the Yellow Pages.

The evaluation process would be completed by Friday, May 25, while the detailed tender document would be published by Wednesday, June 19. Tenders would be accepted up to the end of July, after which evaluation and negotiations with preferred bidders would be entered into. All bidders who reach the required criteria would be considered.

The final choice would depend on the best proposals and pricing.

The process would be temporarily suspended if appeals were to be made to the independent board to be set up under a legal notice to be published this week. If the appeal is upheld, the bidders would continue to be considered in the process because the Government was determined to ensure fair competition.

He added that the expression of interest was not a mixed contract and it did not specify the infrastructure. The Government would also abide by the EU directive.

The authorities had also issued a tender to study a gas pipeline proposal and would embark on such a project if EU funds were forthcoming.

This would take time to complete, adding that other ideas would not be abandoned.

In reply to questions put by Mr Fenech, he said that the expression of interest specified a minimum of a five year fixed price.

This was done after international advice had been sought.

The Government was also considering gas pricing simulation studies and different models.