Malta will be exporting energy to other countries as a result of the agreement signed with a Chinese company on Wednesday.
Addressing the annual general meeting of the PL’s Gudja Club this morning, Dr Muscat said that through this agreement, which had been praised by everyone except the Opposition, Malta and China would also be seeking investment in other countries.
It would see where it could find land in other countries where the panels manufactured here could be exported and the energy produced sold.
Moreover, Malta would also be exporting its services to China Power power stations in Europe and Africa.
“The Chinese were trying to find a safe place from where they would be able to reach all their investments. We told them Malta is the natural place for this and they said yes…
“China will have a partner in the EU and Africa through Malta, as European and African countries want,” Dr Muscat said.
He said that what had been reached was a memorandum of understanding. Only the basis of the agreement had been agreed upon, the details would be discussed in the next six months.
Malta agreed to give the Chinese a minority shareholding in Enemalta, retaining the right to keep taking all the important decisions. It obtained a strategic partner that was willing to invest because it made sense to do so.
The agreement would see the jobs of Enemalta employees safeguarded and put on solid ground and new jobs would also be created.
“We have understood the challenge of globalisation which we see as an enormous opportunity. The Government is showing that it is a responsible manager of the economy… By taking a stand against this investment, the Opposition leader is isolating himself and his party more and more…
“This is a party government that feels the pulse of the people. We do not put off the people’s concerns as perceptions… And we will also make a difference in the health sector which we shall also be tackling,” Dr Muscat said.
Dr Muscat said that contrary to what the previous government used to do, this Government, would, after negotiating, take the matter to Parliament before signing the final agreement.
He noted that although the PN was saying that it was against the sale of essential services, its last act in the previous administration had been to sell off the public transport sector monopoly to a private company. This was when public transport was also an essential service. Foreigners also had the majority shareholding in Malta’s sole airport.
In the case of Enemalta, the Government would be retaining control but giving a minority share.
Dr Muscat said that when the Labour government took over, it found a bankrupt Enemalta which had a debt of more than €800 million. Not 1c in capital investment in the past 25 years had been paid for. Even the first Delimara power station was still unpaid and interest on debt was creeping up.
If nothing was done, the €800 million would soon become €1,000 million and the country might drown.
Dr Muscat said that labour inherited a policy for alternative energy, the aims of which were not being met.
This country lacked an energy policy, inherited a corporation burdened by corruption and a power station that worked on heavy fuel oil.
The situation was such that until the station was transformed to work on gas, heavy fuel oil had to continue being used. Malta did not even have the infrastructure to store other fuels.