The European Commission has officially closed infringement procedures against Malta over the controversial, multi-million euro contract awarded to Danish company BWSC for the extension of the Delimara power station.
According to the EU Executive, its investigation on whether Malta had infringed EU procurement rules in the award of the contract resulted in the negative. It therefore decided to close the procedures.
The Commission noted its investigation covered only the award of the contract vis-a-vis EU procurement rules and did not go into the entire process. It also left the door open for further investigation “should additional facts become available”.
A letter of formal notice – the first of a three-pronged infringement process – had been sent to the Maltese authorities last May asking for information to establish whether two specific EU procurement rules had been breached in the award of the contract.
The first concern was about a change in emission limit values of diesel engines made during the tendering process.
On this point, the Commission considered that these changes were needed to clarify the limit values applying to diesel-powered plants and to gas engines, following changes in the applicable legislation – the Limitations of Emissions of Certain Pollutants into the Air from Large Combustion Plants Regulations. The Commission found that no discrimination can be found in this case between diesel powered plants and other technologies.
“In the circumstances, and on the basis of the information made available to it, the Commission cannot conclude the Maltese awarding authority infringed the principle of non-discrimination in this regard.”
Brussels also sought to clarify whether failure to announce the decision on the award of the contract immediately prejudiced the right of appeal of the unsuccessful bidders.
Here too, the Commission found no wrongdoing and concluded the unsuccessful bidder was still in a position to exercise the right of appeal despite the fact he was not notified immediately. “Therefore, the Commission did not find evidence that their right of appeal was prejudiced by the fact they were not immediately and individually informed.”
The contract awarded to BWSC for the extension to Enemalta’s Delimara power plant has a total value of €183 million and is expected to increase the electricity generation capacity by more than 100 megawatt. As soon as it comes on stream, the old power station in Marsa is expected to be decommissioned.
The announcement by Brussels led the two main political parties to say their stand was vindicated.
The Nationalist Party argued Labour’s attack on the power station extension had been undermined yet again, this time by the European Commission.
The PN said Labour Leader Joseph Muscat had tried to make political gain on the back of the Commission investigation adding that “the bubble inflated by Joseph Muscat has now burst”.
The Labour Party, however, levered on the fact the Commission probe focused on infringements related to procurement procedures, pointing out the announcement by Brussels confirmed no EU investigation had been carried out into the irregularities raised by Labour and the Auditor General.
“The Labour Party, like a big majority of the Maltese people, is not happy with the way things were done on the power station contract,” the PL said.