The Opposition yesterday formally called upon the government to publish in Parliament all the documents connected with the building of a new gas-fired power station.

Apart from the contracts between Enemalta and Electrogas, the private consortium building the plant, the motion also calls for the publication of the letter of guarantee issued recently allowing the private company to obtain a multi-million-euro loan from Bank of Valletta.

Giving notice of the motion to Speaker Anglu Farrugia, PN deputy leader Mario de Marco said it had been two years since the government announced a deal with Electrogas and the public deserved to be given all the information.

“The public is being kept in complete darkness by the government over deals spanning more than 18 years [the length of the power purchase and gas supply agreement]. This is not on,” Dr de Marco said.

He insisted that it was already bad enough nobody knew when the power station would be completed, months after it was supposed to be up and running.

Members of the Nationalist Party file their motion to have all the documents published in connection with the construction of the station.Members of the Nationalist Party file their motion to have all the documents published in connection with the construction of the station.

Shadow minister Claudio Grech said through the motion, the government was also expected to explain the €88 million “unique” State guarantee it had issued to cover the exposure of a loan given by Bank of Valletta. The Sunday Times of Malta has reported that last December the Finance Ministry issued an unprecedented €88 million guarantee to cover a €101 million loan that was taken out by the company building the gas power plant.

Following these revelations, Finance Minister Edward Scicluna admitted this was a unique guarantee but insisted it was temporary – until the EU gave its blessing to a power purchase agreement signed between Enemalta and Electrogas.

Mr Grech said that while the PN hoped Brussels would approve the deal, the government still had to clarify what would happen if the European Commission did not.

“Will the project collapse? Will the bank call in the guarantee and taxpayers have to fork out €88 million in favour of a private company?” Mr Grech asked.

Shadow minister Marthese Portelli said the government should practice adhering to its transparency pledge. The Speaker said he was all in favour of more transparency and Parliament being informed of such deals.

In a statement, the government said it looked forward to further discussion in Parliament on the energy sector and reiterated that the State guarantee was a temporary measure that had been issued in line with EU state aid rules.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.