Construction of the gas power station should not be affected by the finances of the project’s lead partner, according to Chris Cardona.

The Economy Minister yesterday insisted the power plant would be ready on time next July.

He was unperturbed by the state of affairs at Gasol plc, the lead partner of the Electrogas consortium that has been entrusted with the construction of the power plant and gas-handling infrastructure.

The Sunday Times of Malta revealed that, according to its latest financial statements, Gasol plc, which last year delisted from the London Stock Exchange, reported a negative equity of €12.8 million and accumulated losses of €96 million.

Its independent auditors added that “the group does not currently hold sufficient cash or liquid assets in order to meet its commitments as they fall due in the next 12 months”.

Gasol holds a 30 per cent stake in Electrogas. The consortium will not only build the infrastructure but also operate it on the basis of an 18-year agreement to sell electricity and gas to Enemalta. Last December the government issued an unprecedented €88 million State guarantee to cover Bank of Valletta’s exposure in a €101 million loan given to the consortium.

Asked how long this temporary State guarantee, approved by the Cabinet last December, would last, Dr Cardona said: “That is something arranged by the Ministry of Finance.”

Finance Minister Edward Scicluna had said this was a temporary measure until the European Commission evaluated whether an agreement with Electrogas over security of supply contained any State aid.

When asked what position the government would adopt if the Commission did not give the green light, Dr Cardona said: “That is a hypothetical question and I don’t reply to such questions,” he said.

Commenting on the latest credit rating report by Standard and Poor’s, Dr Cardona said the positive outlook showed that Malta was moving in the right direction.

He said that while making sure good performing economic sectors, particularly gaming and financial services, continued to grow, the government was investing in new areas such as the creation of a maritime and logistics hub.