A government brought down and a political party funded to the tune of millions, so that private individuals can take over Malta’s electricity supply
It didn’t take much to work out that the financial driving force behind the Labour Party is a group of people who want/plan to acquire a virtual monopoly on the provision of electricity in Malta.
That the Labour Party intended to use exemptions in EU procurement rules to avoid the tendering process was also evident from the outset (such exemptions exist).
They presented this, during the campaign, as a way of getting the power station built as fast as possible. But the real reason is that by avoiding public scrutiny and the Department of Contracts, they can pretty much give the job to anyone they want to and almost certainly did so at the outset.
The fools who try to compete for this project are wasting time and money.
We are told now that the private company which is to produce Malta’s electricity, and which will have a virtual monopoly until the interconnector comes on line, will sell that electricity to Enemalta, which will in turn sell it to the consumer.
And this is supposed to make it cheaper. Worse than that, electricity generation will be in a virtual monopoly situation in the hands of a private company, with no safeguards on pricing when Labour’s 10-year agreement is over. Apres them, la deluge.
Rest assured that the Malta-Sicily cable interconnector project will now be subjected to all kinds of sabotage intended to delay or derail it.
Here is perhaps the most serious example yet of how weak democracy is in Malta. It has been possible for those who wish to acquire control – and the power that goes with it, for controlling an island-nation’s electricity is perhaps the ultimate power, literally so, to say nothing of the unquantifiable fortune in the form of a licence to print money – to destabilise a government systematically and bring it down, installing in its stead another government prepared to do their bidding in return for help in achieving power.
This is the stuff of banana republics where democracy is weak or non-existent. I would hazard a guess that the investors behind the project – the non-Maltese partners, that is – used in Malta when dealing with the Labour Party a variation of the same methods they use when dealing with the administrations of African or certain South American states.
The shocking thing is how very easy it was for them to use, in Malta, parliamentary democracy to achieve their ends, when parliamentary democracy is intended as a safeguard against such things.
I will have to say though, that their assessment of the weakness of democratic understanding in Malta is as accurate as mine, the difference being that they used it for negative ends. They succeeded in creating a form of Venezuelan-style mass hysteria dressed up as a modern, European ‘movement’, which would not have been possible where people are better educated and more democratically aware.
And alongside this, they systematically eroded the previous government from within, bringing it down. The investment has paid off.
The sick irony is that those who were most vociferous against the last government and who spoke most avidly in favour of this one, when it was still the Opposition, are the ones who pride themselves most on being switched-on and aware, and who would be horrified at the thought they were used by their despised ‘big international corporations’ to acquire control of Malta’s electricity supply.
Cue a long period of deep denial. In their position, I would feel a total fool. Sticking my neck out on a billboard or on some mass meeting platform so that a group of unelected individuals can acquire effective control of Malta through its electricity supply and turn themselves into miniature Croesuses in the process? No thank you.
I am so, so glad not to have been a part of this. Those who thought they were delivering Malta from the hands of evil have instead gone and created a sub-Saharan African state situation: those who control Malta’s electricity control Malta. The government becomes answerable to them, and not the other way round.
94 Comments Comment
Leave a Comment
http://www.timesofmalta.com/articles/view/20130411/local/enemalta-issues-call-for-expression-of-interest-for-new-power-station.465033
In the call for expressions of interest, this sentence is telling: “The successful bidder is requested to ensure that the design of the plants makes it possible for waste heat from the CCGT plant to be used in the re-gasification of LNG at the LNG facilities, if technically and economically feasible.”
In other words the bidder is requested to ensure that something is possible but only if this something is possible (or feasible).
It is an important point because the transformation of the liquid methane into gas is fraught with environmental hazards and is probably the operation with the biggest impact on the environment, including, perhaps the seabed.
The method used is of the utmost importance and should have been specified by the government, rather than left at the bidder’s discretion “if economically feasible”.
It is interesting how the government is now arguing that different technical solutions for the new gas plant will be considered.
Is it possible that the technical scenario with two gas tanks and gas shipments presented by Labour at the start of their multi-million euro electoral campaign was a misleading one on purpose?
However, the main constraint – and hence the deciding factor – is going to be the delivery of the solution within 2 years. Even the Minister emphasised this earlier today.
So basically, after the Minister widened the technical options, it is possible that a bidder could have a cheaper solution, but with a delivery of 4 years. But in this case, this would not be considered suitable.
Therefore, it is clear that if Labour has a supplier already, this is the one who has done the homework about delivery of the project in 2 years. The consequences of not doing so are too expensive…for Joseph Muscat.
The rush to bring in the new power station is to make sure that the suppliers rake in as much as they can. Once that is up and running, and Malta is chained to buying its power supplies from that source, the interconnector project will be practically redundant.
Now all we need ask is, who the suppliers are and who stands to gain politically from all this.
‘pimps, thieves and scoundrels’
That describes the historical identity of the Maltese.
Further evidence that this is a pre-ordained deal: whoever takes on this sole client will be selling to an entity that’s supposedly already mired in debt.
Isn’t ‘Keith’ invaluable?
http://gastopowerjournal.com/projectsafinance/item/1604-malta-invites-bidders-for-new-ccgt-power-plant-200-mw
The successful bidder is requested to ensure that the design of the plants makes it possible for waste heat from the CCGT plant to be used in the re-gasification of LNG at the LNG facilities, if technically and economically feasible.
The owner and operator of the LNG regasification terminal project may also be called upon to supply a further 150MW of power for an existing heavy fuel oil-fired plant at Enemalta’s Delimara site, which is to be converted to run on natural gas.
Interested parties will be invited to register for the Expression of Interest (EoI) and the Request for Qualification (RfQ) on 11 April, which will be followed by a Request for Proposals (RFP) for the project.
Independent investors will first be pre-qualified before being invited to competitively bid for the PPA and GSA on the condition that these plants must be built and operated at Enemalta’s Delimara site, and be fully commissioned by the spring of 2015.
There is no way they can have the whole bidding process and a contractor selected within 5 months, even with bypassing the EU tendering process and the requirements to complete an EIA. Unless they know beforehand who is going to do it. And I suspect that is Bateman.
Why?
They were the unsuccessful bidder for the Delimara Phase II project and submitted a gas-fired solution as opposed to the HFO option of the winner, BWSC.
They will have already done a lot of the preliminary design and conceptual work for a gas-fired power station at Delimara and will have something that they can hit the ground running with. If they bid, they have it.
http://www.enemalta.com.mt/newsDetails.aspx?id=17
Whether or not they can complete the whole thing in 18 months for 20 million euros less than the cost of their proposal for Delimara Phase II, well, what do you think.
I believe that the government will fast-track the process through MEPA and use the EIA for the Delimara Phase II project – link below:
http://www.aisenvironmental.com/energy/93-eia-for-a144mw-power-plant-extension-at-delimara-
Re use of hot water for gassification.
This is no option , it is a must have .
The surface area to gassify the LNG required to run the plant is too large and it simply does not exist in the remaining space.
This always complicated matters because of the required additional evaporators , water threatment , corrosion etc etc.
OK, so this thing appears on the 8th of April, deadline for registration the 11th April.
That’s a grand total of three (3) days. And they’ll have us believe it’s not a done deal. Please.
Regasification using waste heat from a combined cycle, interesting, albeit major expense, which will no doubt leave open the case for expansion in volumes.
http://www.maltatoday.com.mt/en/newsdetails/news/national/Gas-plant-contract-to-be-awarded-in-September-bypassing-Contracts-vetting-20130411
The preferred bidder will decide whether a liquefied natural gas terminal will be developed offshore or on land.
It is obvious, this is the result of the previous comments on top of this one.
Oh, so an offshore terminal is a feasible option now. And if it’s up to the bidder, they’re fine.
Whatever GonziPN was working on, they’ll carry through.
Thank goodness Lawrence Gonzi did have an energy strategy in place then. Pity he would go into the nitty gritty of whether it ultimately proved to be in the national interest.
The brazen cheek of these individuals is just astounding. They’ll screw the terms of a contract, just to get their hands on our money in less than a summer.
In that case how about putting the regasifiers on top?
Easier pumping LNG in its gaseous state, just a pressure drop required.
http://www.maltatoday.com.mt/en/newsdetails/news/national/Gas-plant-contract-to-be-awarded-in-September-bypassing-Contracts-vetting-20130411
A decision has yet to be taken on whether normal MEPA procedures will be followed for an environmental impact assessment and planning permits for the new plant and terminal; or whether Cabinet will fast-track the project.
In other words, government is going to ignore its own electoral promise to make the environment a priority.
No wonder Muscat appointed Brincat as Minister for the Environment.
Under the revised MEPA set up, government is empowered to override MEPA decision where such decision runs counter to government intentions. Quote ” we cannot have decisions taken by an elected government overridden by committees”. So the government is a law unto itself now.
A further point that entrenches the private electricity provider is that the demand for power must first be supplied by that provider. Use of the interconnector or other source/s of power generation would only come into play once the generating capacity of the private contractor is fully taken up. This completely rules out The consumers from ever benefiting from low tariffs available on the EU power grid at certain times of the day or night.
The real prospect of huge liquified gas tanks being placed at Delimara, apart from endangering the population in the area, will adversely and immediately affect property prices in Birzebbuga and Marsaxlokk. That will also bring about a visible increase in insurance premia in regard to containers stored at the Freeport, as well as to the huge container ships that berth there carrying cargo worth millions of US dollars.
The disastrous effect that implementation of the PL power plan must be studied in depth and be put clearly before the people who, ultimately, will bear the brunt environmentally and financially.
The rumour is that we’ll be importing tons of rice….take the cue from here and investigate further to get to the bottom line. I’m serious.
“Mizzi also confirmed that the preferred bidder could opt for the development of a pipeline.”
It seems that the bidder is going to be omnipotent in all decisions taken.
I am sure Joseph is devious enough to still remain in control one way or another.
On the 10th March I could not look at all those people I knew who voted labour, and today my feelings are 100 times stronger.
God help us because we have a really bad man as our country’s leader and more than half the population cannot even see it.
I must be stupid but I can’t see how a private company can fulfil the pre-condition to build, own and operate their gas and power plants at Enemalta’s Delimara site (to be fully commissioned by spring 2015) and not pass on the millions of euros this will cost to Enemalta.
Of course, who would want a foothold in the EU, by having a member state by the balls?
The Chinese.
That would be worth the price of a gas plant.
http://euobserver.com/news/119744
Really frightening.
I sincerely hope that you are wrong otherwise poor Malta.
Marsaxlokk, with its odd 50 catering establishments, will become a tourist wasteland after the building of a power station
which is surplus to Malta’s requirement.
I have a feeling we’ll be hearing the name SARGAS in the news very soon. And also that a sick old man in Brussels is suddenly feeling much better….
And Gazprom.
Three guesses who the successful bidder will be – friends of friends for sure.
Mela spiccaw il-hbieb tal-hbieb? How nice.
So I guess it’s perfectly acceptable for a foreign company to make a cut selling electricity to the Maltese governemnt; by contrast to Maltese company earning a commission selling oil to Enemalta was scandalous.
At the end of the day, companies are there to make money for their shareholders to whom they are answerable. The consumer is there to be milked in the process.
The disastrous effect that implementation of the PL power plan will bring about must….
I’m surprised to discover that the safeguards will end after 10 years, even for Labour. To anyone with a brain, this would show that Labour is either an ignorant party or a party with bad intentions (it happens to be both). I’m also surprised that the Nationalists didn’t stress this in their last campaign (honestly, what happened?).
We are dealing with a product that is a necessity here, meaning that every person would be willing to pay for it at almost any price. Any firm with a monopoly whose intentions are to maximize profits would be crazy not to put the prices extremely high, possibly even to the point where lower-income people can’t afford it.
What bugs me (at least from the people I’ve met), is that most people just shrugged off the power plan, assuming that Labour have changed after 25 years, and said “let’s leave it to the professionals”.
There was never any doubt that safeguards would expire within ten years. There was plenty of doubt that prices couldn’t be guaranteed for the first ten years.
But switchers voted Labour anyway. May they be consumed alive by their utility bills, for to survive and face their own stupidity would be a tragedy of disastrous proportions.
As my 95 year old mother said after the election result was announced ” m’ghandi xejn fuq il-kuxjenza.”
On January 14, 2013, in response to your contribution titled “A power station deal or a Faustian pact?” I had submitted the following contribution. How I wish I had been wrong:
“It is a Faustian pact. And furthermore, it will definitely be profitable to whichever energy company will have a monopolistic stranglehold on Malta’s energy supply in a decade’s time.
The comparision in energy prices is being made to the current cost of energy production by the public sector – ie by Enemalta.
The odds are that the private company which will have a monopoly on the country’s energy will be able to produce energy at significantly lower costs, applying the long tested and successful economies of capitalism which Labour is now embracing.
Logistics apart (frankly the PN should not get lost in this timeframes because they won’t count once Labour’s in power), the future scenario looks like this.
Labour will be selling out to a private company the country’s energy sector, in return for a promise to keep prices unrealistically low for two electoral terms. This means Labour is promising to deliver the undeliverable and will manage to do so through an unholy pact.
Energy in most countries is considered a matter of national security, and should be more so in Malta’s case.
Instead of trying to discredit the proposal, the PN should focus all its resources in identifying the company/ies which have expressed interest, their Malta representatives and, more importantly, any links that may or may not exist between them, their agents and Labour’s apparently inexhaustable money supply.
Rap Muscat on that, and the election may be winnable.
Fail at this, and it will be a landslide for Labour.”
Shame on those MPs who collaborated with Joseph Muscat to achieve his aim.
Can the opposition object to agreements that are not favourable to Malta and declare in parliament that if they are in government they will not honour the contracts made with this private company and renegotiate the agreements?
They could, but they’re yellow.
The Malta Independent is quoted to say ‘Dr Mizzi explained that according to EU procurement rules, there is no need for a formal call for tenders for the procurement of energy and gas, comparing the situation to oil procurement’.
Can some legal mind enlighten me from where these exemptions emanate please?
This whole project stinks.
And it’s not the smell of gas that I’m referring to.
Isn’t there some possible objection to the fact that Labour want to bypass all necessary procedure which can be reported to the relevant EU institutions?
Mazunerija United.
Shame on those MPs who sold their souls to the devil.
It will not be possible for the government to bypass the EIA regme. A 200 MW plant definietly qualifies for an EIA under _
Annex I paragraph 2 a of the EIA directive (2011/92/EU). Only projects related to defense are exempt. THe only way to avoid an EIA is by adopting the details of this project through a specific national legislative act, on the assumption that this process supplies information comparable to that from the EIA, to the public. There is numerous ECJ case law on the sublect of EIAs and at least two landmark cases the Kraaijeveld case in wih the ECJ ruled that “member states have to limit exceptions” and WWF vs Autonome Provinz Bozen in which thw
And if it does not happen, Joseph will take all the responsibility for the failure and leave (or so he promised).
No, he will blame Konrad Mizzi and force him to resign.
And the WWF vs Autonome provinz Bozen in which the ECJ ruled that citizens can petition their national courts directly on cases dealing with incorrect or non application of the EIA Directive, without having to prove juridical interest.
This essentially means that any Maltese citizen can initiate court action vs the government should it bypass the EIA requirement and can eventually have the ECJ issue a ruling should the government persist.
Prize Heifer Jean Pierre Sammut in and about North Korea http://freekorea.us/2005/01/05/solidarity-anti-imperialism-and-hot-babes-2/
Scroll down
Of all comparisons one might think that drugs and power stations are at opposite poles – not with the PL they’re not.
If one uses political convenience as a common denominator, the two magically come together.
For political convenience Muscat failed to do what he had to do when he knew about a drug trafficking case. Drugs “address” personal problems in the short term but permanently damage or kill you in the long term.
For political convenience Muscat is failing to do what he should do knowing that his plan is not in the best interests of Malta. His plans may address the problem of high utility prices in the short term but will have catastrophic effects in the long term, that is, following the 10th year.
The residents at Birzebbugia and Marsaxlokk are going to have a really nice time enjoying the new terminals Mr Konrad’s friends are going to build.
http://www.polarenergy.net/images/LNG_Limay.jpg
http://www.porttechnology.org/images/sized/images/uploads/news/Cheniere-Sabine-Pass-LNG-terminal-306×203-600×0.jpg
The silence of the residents of Birzebbugia and Marsaxlokk is ominous.
I will never stop repeating that this government is an amateur and spiteful.
Carmelo Abela floats idea for parliament to remain at the Palace …
http://www.independent.com.mt › News
Under the PN 70% of electricity was going to be available through the Interconnector. Presumably not having to recoup the capital costs of building a power station and the recurrent costs of running means that we should have very low cost electricity – at least 70% of it. At night we can take advantages of surplus electricity and get it at rates 1/3 of the day rate. Someone (a print journalist if you exist) please ask how building our own will bring down THIS cost – which is already committed.
As for BWSC the emissions are well below EU maximum standards so the relative emissions we will save are negligible – and unlikely to make a huge impact on our targets, given that BWSC will only supply 30% of the need. Someone (a print journalist if you exist) please ask how converting BWSC will bring down THIS cost.
The longer term proposal of a gas pipeline makes so much sense when compared to these two numbers – but it seems we only have Labour sympathising journalists out there and no one with the balls to bring them to task.
Malta has done relatively well compared to other Eurozone countries but now we seem intent on joining all those in trouble by committing this country to an unneeded power station worth some €400 and worse still a commitment to buy electricity produced by it for 25 lonnnnnng years – and they can do this bypassing the rules. A tender process is required, morally at least, when committing Malta to the largest every commitment (by a lonnnnnng shot) in its history!
Wake up Malta
Did CNN interview Joseph Muscat or just Joseph Calleja? Pity…
http://edition.cnn.com/video/#/video/business/2013/04/11/pkg-business-traveller-joseph-calleja.cnn
CNN only interviews relevant people.
So Labour will be in Government for the next ten years while there exists an agreement on stable power tariffs.
When this agreement expires there will be no safeguards on pricing and tariffs starts to go up.
It will then be up to the incoming PN government to face the criticism of higher energy costs.
If bulk buying worked so well in the 70s & 80s, why would a monopoly on the supply of electricity not work equally well?
Malta will be getting exactly what it voted for, or even less!
“The government becomes answerable to them, and not the other way round.”
And that’s not just for the current government’s 5-year term, or even for the 10-year obligatory purchase agreement. What we’re looking at is a quarter-century scenario. Perversely, that’s the sort of fictitious situation the infamous switchers thought they voted against: a 25-year tenure, when what we really had was a democratically elected government that had been in place for five years. Five, not twenty-five.
And people like me were flabbergasted why 20% of the load carrying capacity of the interconnector will be used instead of the planned 70%.
Can’t the EU object for the misuse of its funds?The EU gave us funds for the interconnector intending to give us a supply of some 200Mw through that cable at favourable tariffs, using less is a breach of contract.
On a separate note, the MEPA board discussion on a new recycling plant was hastily stopped. This plant was being funded by the EU. The government (ie Keith Schembri) will take a decision on this project in the future.
http://www.youtube.com/watch?
feature=player_embedded&v=9cia9dcdYjA
By any chance, does Kasco recycling, directly or indirectly, intend to take over the waste management services of the entire country?
http://www.kasco.com.mt/?m=planet&t=Recycling
Do not be surprised after all Malta Taghhom (il Laburisii) lkoll.
I would have thought Ms Coleiro Preca in her role as minister would have more important issues to deal with personally than checking if there was a soap holder in a new apartment occupied by an elderly woman. This does not merit media coverage.
http://www.independent.com.mt/articles/2013-04-11/news/coleiro-preca-says-some-housing-authority-dwellings-lack-basic-needs-1372585984/
Ah but daily and continuous dosage of media coverage won them the elections.
http://www.powerengineeringint.com/articles/2013/04/malta-to-offer-200-mw-long-term-ppa.html
On 11 April 2013, interested parties will be invited to register EoI for a long-term PPA, as well as a gas supply agreement, which will govern the supply of both electricity and natural gas to Enemalta.
As part of the agreement, Enemalta will retain full electricity dispatch rights.
It quite evident that the Labour Party bought in the idea of the new power station strategy through discussions with energy gurus.
We have the right to know who they are and to what extent the Labour Party committed itself.
Were these experts selected after a call for expression of interest or were they proactive with intent for exchange of favours?
The current energy minister has already protected their commercial interest before the election.
They have now without doubt submitted their expression of interest. They have a head start on any other potential bidder.
This is meritocracy?
I hope they are at least competent to deliver the 25 percent reduction in electricity bills for us to enjoy.
Tailor-made may I add.
Oh, and it so happens that the first military vessels to visit Malta under the new Labour government were… Chinese.
It’s not a stretch to imagine Labour selling off Malta’s harbour facilities and European veto in return for a Chinese power station and a few quid to fund an election campaign.
From Libya’s valletta to China’s geisha. Quite a foreign policy objective.
Flash news from the Auberge de Casino:
Frankie Tabone appointed Chairman of the Committee (or is it a Convention) for the Revision of the Prostitution of Malta.
Malta: From Libya’s valletta to China’s geisha.
Geisha is Japanese
The Chinese don’t have geishas. They have eunuchs. Just like Malta.
Ciccio hasn’t heard of Japan.
Well then, let us educate him:
http://www.youtube.com/watch?v=648evy0bA2k
http://www.youtube.com/watch?v=DGSv-n9H_kI
Like in the cabinet? Hell of a lot of eunuchs there. Old, though.
My fault.
What I know about Japan is that they had a Prime Minister called Hashimoto.
Spot on !
What do these people care?As long as they can go around saying “Malta Taghna Ikoll” they are happy.
So the Labour Party has spent years criticising the previous government for the dependency of our electricity generation on oil. And now it turns out that the Labour Party government is going to transfer the generation of electricity to a private monopoly which will run on gas.
And in doing so, Labour is not subjecting itself to any public scrutiny.
Labour runs on gas and hot air. That’s why gasbags voted for them.
PN should have made all these things clear to the people. The above things were obvious but the PN campaign was too weak.
In truth they did – but no one gave a toss.
Laburisti lil Nazzjonalist waqt il-hin tal-mistrieh: “Issa oqghod hemm u arana mmexxu, ghax Malta taghna lkoll.”
Spicca iz-zeghil!
Isn’t Mrs Konrad Mizzi Chinese?
Oh, my…..you’re more than spot on, bravo!
If Bateman wins the contract then we can say that the electoral campaign was a US style campaign…complete with the Jewish lobby!
Can you make 1+1=2 http://www.timesofmalta.com/articles/view/20060127/local/malta-china-in-heritage-agreement.65193
This is far more relevant:
http://www.scribd.com/doc/128130324/Joseph-Muscat-says-he-signed-an-agreement-with-China-on-Malta-s-behalf-it-Torca-18APR2010
@ P.Camilleri: I agree with you 100%. I have always maintained that this private company might keep the energy tariffs low for the first ten years.
However, on termination of this period, this company will be holding Malta by the balls and will demand exorbitant tariffs to make up for the loss of revenue made in the first ten years.
http://www.bbc.co.uk/news/business-22119236
Totally scandalous.
Many comments here and clearly not appearing to come from sources conversant with the subject and probably regurgitating pieces of misinformation. Europe is a fully liberalized market and EEX and IPEX prices are clearly lower than those in Malta and this is despite the so called monopolies having been privatized and the market opened up to private sector investment. In the process millions have been made by companies offering electricity cheaper than our state owned monopoly. Why? Because a private company cannot afford to fail! A well managed service provider that is a specialist can very often give you a better deal due to economies of scale and a management team that is highly incentivized to deliver. I guess the proof of the pudding is in the eating. Time will tell. Regarding environmental concerns the impact of a well designed LNG terminal and power plant compared to what their currently is would be not far different to having an ant walk on your toe as opposed to an elephant stepping on it. Quite simply the impact on power production is so massively reduced and the LNG related impact can be practically negligible meaning the over-all result is far more environmentally friendly. As much as 60% of our CO2 footprint could be eradicated within 2 years and more importantly leaving us room for growth equal to almost 100% of current power generation. Whereas with the current HFO scenario we are at the limit already. Regarding the LNG terminal/ container terminal risks. THe existing fuel tanks at delimara represent the same risk as the LNg storage. A quick look on google earth will clearly show you a massive fuel storage depot adjacent to the freeport so I can assure you there are no additional risk premia to be paid. having said that, knowing how insurance companies think, they might try to increase them. Regarding the possibility of the government investing, unfortunately there is simply too much debt loaded on the existing utility which the government has to guarantee that the interest rates will probably not be that great and indirectly cause the overall cost of ownership to increase when compared to a higher credit rated corporate. in addition the government guaranteeing such debt could lead to europe declaring such guarantees as part of the debt to gdp ratios. We cannot afford that since we are at the limit already. As they say, beggars cannot be choosers, however this could be a blessing in disguise. I am confident that for a change within 2 years, Enemalta will be in a position to make money on all units sold even at lower rates compared to current. Something it has failed to do for over 12 years leaving it requiring the man in the street to subsidize the utility bills of large companies operating in Malta. As they say, time will tell.
If LNG leaks it expands 60 times its volume and then explodes.Engineers build computer models to predict this scenario in a risk assessment.
If oil leaks there’s the containment tank which is a purposely built outer concrete wall to hold all the volume of the steel tank and oil does not explode but it burns. Not to mention the fire fighting systems which are strategically placed to put out the fire with an abundant supply of seawater.
“Time will tell” : If there’s an LNG leak in Marsaxlokk Bay we won’t have the “time to tell”, it will be too late.
LNG terminals are installed far away from built up areas.
Will an artificial island do the trick?
I think that this is a case of “Fools rush in where angels fear to tread”.
“Regarding the possibility of the government investing, unfortunately there is simply too much debt loaded on the existing utility which the government has to guarantee that the interest rates will probably not be that great and indirectly cause the overall cost of ownership to increase when compared to a higher credit rated corporate.”
Who will pay the debts? Debt is “Taghna Lkoll”. It should be the end users and not the taxpayers who should pay for this debt. I expect a “mhux xorta?” comment.
If it is the same let the consumers pay for the debts. Somehow Enemalta has to fund its debts. It will do that through transmission of the electricity, and the customer will end up back at square one.
This is just not on. The contractor generates electricity, Enemalta is made to buy all of the generated electricity by the contractor, which transmits it at its own expense and in the meantime uses 20% of the Sicily-Malta cable for which it paid some €200 million.
If this is not crazy then it must be gross barefaced corruption.