And…it seems increasingly likely that Times of Malta’s story about the power purchase agreement was a red herring
Published:
May 20, 2014 at 5:06pm
Kurt Sansone wrote a story for Times of Malta claiming – without citing any sources – that the government had signed its power-purchase agreement “on Friday” (before last), and asking why the press were not told.
But it has become increasingly evident that the only thing signed that Friday was Gasol’s agreement to purchase (not the actual purchase itself) 30% of shares in Malta Power and Gas, as a precursor to the formation of ElectroGas Malta Ltd. All the other members of the ElectroGas consortium have still even to sign an agreement to purchase, let alone make the actual purchase.
There’s a story about this in The Malta Independent today.
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http://www.independent.com.mt/articles/2014-05-20/news/gas-power-purchasewho-has-the-government-signed-an-agreement-with-5080645636/
See also, for background:
http://daphnecaruanagalizia.com/2014/05/exactly-what-power-purchase-agreement-did-the-government-sign-last-friday-and-who-with/
Someone’s lying. Why am I not surprised?
http://www.timesofmalta.com/articles/view/20140507/local/power-station-on-track-contract-this-week.518052
But when asked about the matter, Dr Mizzi said the project was progressing “as per project plan” and the agreement with Electrogas would be signed this week.
http://www.timesofmalta.com/articles/view/20140512/local/Electric-deal-is-sealed-behind-closed-doors.518637
A deal that will see Enemalta buy electricity and gas from a private consortium was signed last Friday away from the media glare.
The press was not invited to cover the event sealing a year-long process that will lead to the construction of a gas-fired power station and related infrastructure.
http://www.timesofmalta.com/articles/view/20140516/local/Muscat-nothing-to-hide-over-Electrogas-contract.519187
Prime Minister Joseph Muscat insisted yesterday there was no secrecy in the contract the government had signed with the consortium Electrogas over the supply to a new LNG plant at Delimara, and said the deal would be published soon.
http://www.independent.com.mt/mobile/2014-05-20/news/gas-power-purchasewho-has-the-government-signed-an-agreement-with-5080645636/
The Malta Independent last week filed a freedom of information request, asking to be given access to the agreement that has been signed between the government and Electrogas.
Following this paper’s request, Dr Muscat said that he intends to publish the power station contract for public scrutiny and is currently seeing what commercially sensitive information it may contain to eliminate it before publication. Questions sent by this newspaper to the Office of the Prime Minister in connection with the story remained unanswered.
La Redoute, you remember we had pointed out to a Gasol-Chinese company agreement on this website. It was an agreement signed earlier this month – this one:
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=1750796173574144
“Gasol plc, the AIM listed gas to power company, is pleased to announce that it has signed a Cooperation Agreement with China Machinery Engineering Corporation (“CMEC”), part of the China National Machinery Industry Corporation (Sinomach) group of companies. CMEC is one of the leading companies in the world in the construction of power projects in generation, transmission, and distribution.”
“In return, CMEC has agreed to carry out feasibility studies for the power plants and, if the parties elect to proceed after consideration of the studies, to assist in the arranging of debt financing for the construction of the plants through Chinese banks. CMEC would execute the EPC Contract for the gas-fired plants on a lump sum, turnkey basis. The signing of the Cooperation Agreement with CMEC follows on from the Strategic Partnership Agreement that Gasol concluded recently with African Iron Ore Group (AIOG). ”
So there was this other agreement as well, earlier.
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=1726505986031616
“AIOG has relationships with Chinese State Owned Enterprises in the power sector and will use its goodwill to provide Gasol with strategic access to these relationships. Progress in this regard will also be a consideration when determining the level of introduction fees of projects.”
Can we conclude that the relationship between Gasol plc and China has been proven beyond reasonable doubt?
There is now a new announcement:
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=1767935240568832
“Gasol, the AIM listed gas to power company, is pleased to announce that it has agreed to guarantee US$23 million Senior Notes maturing 13 November 2014 which have been issued by Afrique Energie Corporation (“AEC”). The Senior Notes have an interest rate of 20 per cent per annum.
The funding is to be deployed by AEC for certain investments being currently contemplated by AEC. Gasol Upstream owns 47% of AEC and is working with its management team to acquire discovered gas reserves in Gasol’s core geography of West Africa that require development as opposed to higher risk exploration opportunities.
AEC is a private Canadian registered company with an experienced management team in the oil and gas sector. AEC is a development company with total assets as at 30 April 2014 of CAD 4,463,285 comprising cash and prepaid expenses of CAD 199,525 and goodwill of CAD 4,263,760. Its net loss for the 12 month period ending 30 April 2014 was CAD 490,190.”
(Gasol Upstream is a subsidiary of Gasol.)
There is something so strange in all this.
It gets better. On the Gasol website, there is a one-liner stating that ElectroGas Malta have acquired the Enemalta special purpose company (Malta Power & Gas).
It then contradicts itself in the actual statement by saying that Gasol have signed an agreement to purchase 30% of the special purpose company and that the other consortium members have yet to undertake to buy their shares. Which is the reality by all accounts.
I saw that, Gary. But buying 30% of a company does not mean ‘acquiring’ a company. And yes, there is a contradiction between saying they have acuired the special purpose company and saying that they signed an agreement to acquire 30% of the company.
Perhaps the journalists would bother to check what the MFSA register says about the shareholders of Malta Power and Gas Limited (MPGL) as at today.
Even if Gasol has acquired MPGL, this would give rise to a whole set of new questions. Like why didn’t the other members of the consortium buy their own share? Why is Gasol taking over? But I do not think that Gasol has acquired MPGL.
@ ciccio
If Gasol have, in the unlikely event, acquired Malta Power and Gas Limited (despite saying that they are taking a 30% stake), then I think the answers to your questions would be something like this.
Why is Gasol taking over? Because they have got the project financing from their Chinese chums whom they have recently partnered up with. If this was the case, I doubt very much that Siemens would want to have any further business with Gasol.
Why didn’t the other members of the consortium buy their own share? See above answer. However, this would give rise to other questions. Namely..
Is the deal still valid as it was ElectroGas that was awarded the project as a consortium and not Gasol as a single entity?
Can a consortium be awarded the project and then a member (or members) pull out of the deal, but it still goes ahead with the surviving members (or member). Or would the whole thing need to be put back out to tender?
Have Gasol shafted Siemens (whom I believe were going to provide the project financing) by going to the Chinese for money and this is what is holding up the deal?
You know when the government has lied because it goes silent. Not a word. Not even “you are jealous,” or “you’re nekitif.”
Party of Liars.
I envy you ciccio.
You can tell when the government is lying.
I cannot even tell when the government is saying the truth.
The demarcation line must be very tenuous indeed.
Well, start with the assumption that the government is never telling the truth and you will get it right every time.
Shouldn’t Times of Malta conduct an internal enquiry?
They are in the news business, and they cannot afford to sell unverified stories.
Times of Malta receives ‘official leakages’ from the Government’s PR. It is a strategy used by this government and which serves two purposes: alienate people’s attention from the real problems; and to give Times of Malta its iced-bun for helping Labour win the last election by securing a ‘scoop’ on its pages.
And Times of Malta obliges. Outrageous.
Kurt Sansone’s source, or Sansone himself, must have misunderstood “share purchase agreement” for a “power purchase agreement.”
That’s what I believe happened.
[Daphne – So do I.]
Why, then, does Muscat persist in trying to mislead everyone by saying the contract with Electrogas has been signed? It can’t be because he wants to cover Kurt Sansone’s back – not when his arse is so baldly exposed.
If it WAS a case of misunderstanding “share purchase agreement” for a “power purchase agreement” then what was the PM thinking about when he gave two completely different replies to Simon Busuttil on “Reporter” ?
Surely he would have known what was signed….
To David Thake.
I see your point.
Do not be so sure that Jo knew what was signed.
He certainly has serious limitations.
Agreed Anthony, he mistook Ansaldo Energia, an engineering company specialised in the production of gas turbines for an ‘Italian energy company’. Or so he called it last Sunday.
Shanghai Electric signed a strategic agreement with the Italian government, acquiring 40% of the shares of Ansaldo Energia, which gets to build turbines for Shanghai Electric’s expanding market in Asia.
The signing took place the day Muscat gave us his more memorable of press conferences. Coincidence or what.
Now that the owner of BWSC and our geographical neighbour, read pipeline, have declared a common interest, I doubt Muscat will be allowed to get away with a contract which no-one has access to.
The question Kurt Sansone needs to ask, if he had any brains, is why would an interconnector be used to a quarter of its capacity.
Not to mention that the other bidder for Marsaxlokk, Edison, has been awarded the job of connecting Algeria to Sardegna and another pipeline running all the way from the black sea, past Greece into Albania and onto Puglia.
Muscat’s been isolated. Bang goes his double agent theory, as Scicluna foolishly expects a gas tanker to be funded by the EU. When it doesn’t form part of the network, it won’t.
More likely “aiding and abetting” .
So what did the Prime Minister/Government sign? The Prime Minister claimed, when pressed by the Leader of the Opposition on TVM’s Reporter, that they signed but not ‘published’ the ‘agreement’ . Does anyone in government know what they are doing?
http://www.di-ve.com/news/update-deborah-schembri-attacked-verbally-during-home-visits-ivan-grech-mintoff
[Daphne – I could barely understand what was meant. What frighteningly bad writing and terrible English – it’s offensive.]
Horrible English…makes you cringe whilst reading. A suggestion Daphne; Have your links open in a new tab/window.
Clicking a link takes you off your website.
[Daphne – It doesn’t. You need to use the back arrow instead of clicking out.]
Or right-click and open link in new tab.
Cheap propaganda a’ la Labour. Is Deborah Schembri/Labour trying to garner votes in this manner. What a sham of an article, if it can be called such.
Did anyone say ‘in favour of abortion’?
“Categorical no at this point in time” which does not exclude a yes in the future.
http://www.independent.com.mt/mobile/2014-04-21/news/abortion-no-at-this-point-in-time-helena-dalli-4696309760/
That’s why it’s called Di-ve. It’s abysmal.
Yeah, like Diners, Drive-ins and Dives on Food Channel.
Wow. He has all the linguistic skills of a typical ten year-old. And half a ten year-old’s skills in logic and reasoning.
The scary thing is that he is quite typical of most Maltese.
But wait a second, on TV Muscat said that it had been signed and that it would be published. Whether we go by his back tracking or not, he said it was signed.
So what on earth was he saying? Can we get a proper answer?
Edward, the PM does not say anything.
He just lies.
So the Prime Minister was telling the truth when he said that they haven’t signed the contract. When Simon Busuttil mentioned Kurt Sansone’s article ( which is a lie in itself ) , he decided ( or remembered ) that he had to lie about this issue.
Sansone and Muscat make a fine pair.
They can hardly catch up with each other’s lies.
When all else fails, a contract mystery is bound to reside with Manwel Mallia.
Has anyone thought to ask him where the contract is at?
———-
If the contract isn’t signed, then why has work on the Power Station already begun? Who gave the go ahead? On what basis and with what guarantees/ mandates?
Were the guarantees/ mandates given to all or some of the consortium?
Joseph Muscat knows exactly what’s going on. It’s just not in his interests to inform the electorate and keep it transparent.
@ Tabatha White
Jo-Jo and Konrad have a deadline to meet, or else, remember?
They are already VERY hard pressed to meet the deadline as it is, let alone wait until contracts are signed and then give go-aheads.
In the meantime should a problem crop up, it’s only the taxpayer who would be on the hook for work done and possible contract cancellation fees. Why would Joseph be concerned? None will come out of his annual lease of his own car, you know!
“First he told people to give me a yellow card and now that I am in the pitch waiting for him and he doesn’t want to play. This exposes his shallowness when he wants people to judge others but not him,” he told supporters in Rabat.
http://www.timesofmalta.com/articles/view/20140519/local/muscat-chides-busuttil-for-refusing-direct-contest.519688
“PM ‘relishing’ Saturday’s ‘contest between leaders'”
http://www.timesofmalta.com/articles/view/20140520/local/pm-relishing-saturdays-contest-between-leaders.519850
Time to invite Joseph Muscat to a challenge?
If he publishes without any restrictions the contract of the power purchase agreement with ElectroGas Malta Limited and the one about the Citizenship 4 Sale with Henley & Partners by Wednesday 21st May 2014 at noon, I will join him on the playfield. I invite another 10 team players to join me.
“Io scendo in campo.”
http://www.youtube.com/watch?v=B8-uIYqnk5A
Malta Today refers to Wiggy Sant as ‘former Labour leader’ and he himself refers to the ’25 years of PN rule’.
How sad to have to rewrite your own history, erasing all mention of having been PM.
You sad man.
Wiggy ought to be consoled by the fact that he is only the third worst prime minister in Maltese history after that horrendous monster Mintoff and his seriously mentally challenged successor KMB.
Nothing to do with the subject but I loved this comment and wanted to share with all.
Shaun Anthony Camilleri says:
20 May 2014 21:29
I am unemployed at present. Not allowed social security but I still trust this government than Dr. Simon Busutill’s rhetoric and in my opinion lies and scaremongering. Same old SB cannot change to look good he has to try to put others down.
This is the PN’s ‘rethoric:
We will create work.
_________________________________________________
This is Muscat’s rethoric:
Look at me, I am the greatest. (In fact its plagiarised from Putin’s book)
Shaun Anthony, I am sorry for you.
However I am not at all surprised that you are unemployed.
I, for one, would not take you on.
Not even on the minimum wage.
I would hire him in a heartbeat. He is fairly articulate, which puts him way above the Maltese average. And he appears to have a certain dignity about him. He doesn’t whine about not being allowed social benefits, but states it as fact.
@ H P Baxxter
“He is fairly articulate”?
You must have read a comment of his when he was having a very good day.
Shaun Anthony Camilleri is right on one thing: neither government nor Opposition can do anything for him. He’s on his own. We’re all on our own.
He’s not on his own. Shaun Anthony Camilleri is publicly stating his trust in this government to provide him with a job. He can still dream on.
We’re on our own, Last Post. This is no longer the 1960s or even the 1990s. It’s the post-political era. Our governments have been unable to fix the financial and economic crisis, the demographic explosion, the environmental crisis, unemployment and all that, or to actually shape history. They are being led by history instead of making it.
It’s the post-political age, and we’d better get used to it. You succeed on your own and you fail on your own. Shaun Anthony Camilleri is on the verge of discovering that for himself. Good. I did too, years ago.
OK, I see your point, which is rather depressing but unfortunately so true. Particularly, that about the post-political era, where governments are being led by history instead of making it.
Reminds me of a quote I found somewhere:
“We are no longer citizens – we are consumers!
We no longer have leaders – we now have facilitators of consumption…”
Recently the PM said that the EP election is a contest between him and Simon Busuttil.
Simon Busuttil disagreed and said it should be an opportunity to send a message. First of all I think it is neither and all those persons who are working hard to get elected as our representatives in the European Parliament deserve more respect.
Having said that, If we had to take the PM’s suggestion in the context of a European Parliament election I think he would not deserve many votes.
Whilst Dr. Busuttil is a convinced Europhile, Dr Muscat is and ex Europhobic who has recently had to accept reality (although under duress).
Whilst Dr. Busuttil has a track record of hard work in the European Parliament Dr. Muscat has a history of opportunism whilst at the EP, he even managed to get his doctorate whilst he was there.
Whilst Dr. Busuttil looks at the EU as a partner, Dr Muscat only looks at the Eu as the proverbial cow to milk. and we can continue ad infinitum.
Daphne, a point which has been missed in the electoral campaign so far is the comparison between 2009 when the Nationalist Party was in government and 2014 when Labour is.
These years are equivalent (to a certain extent) because they both came a year after a general election and they were both European-parliament-election years.
The main difference is that in 2009, the world was going through a financial meltdown, unemployment was exploding across Europe and the very existence of the euro was at risk, which means that the Nationalist Party was at a serious disadvantage.
This is what the Labour government is bragging about in 2014 (taken from an Enerġija Pożittiva circular):
– Petrol and diesel prices have been slashed and will remain locked for the rest of the year.
– Prices of 12kg gas cylinders have been reduced by €1.30 to €17.10, and will remain fixed until September.
– Electricity tariffs have been reduced by 25% and water tariffs by 5%.
– The Government is refunding the illegal tax paid on imported vehicle registration previously imposed by the Nationalist administration.
– Stipends have been increased and strengthened.
– The Children’s Allowance has been adjusted to better meet the needs of families.
– Provided free childcare service for working parents and families.
– The top rate of income tax for people earning less than €60,000 has been cut to 29%.
– The prices of school uniforms are being cut by 10% and will remain at this reduced price for the next 5 years.
All these measures will leave more money in your pockets.
On the other hand, this is what the Nationalist government was trumpeting in 2009 (taken from May 2009 press releases):
“EU MEMBERSHIP HAS HELPED IN CREATING JOBS AND MAINTAINING STABILITY” – DR MARIO DE MARCO
MNEDIJA L-KAMPANJA GĦAT-TURIŻMU ‘APPREZZA’ BIS-SEHEM TA’ TFAL MINN DIVERSI SKEJJEL
L-INTRAPRIŻI Ż-ŻGĦAR GĦODDA GĦALL-ĦOLQIEN TAX-XOGĦOL: IMNIEDI MANWAL GĦALL-SMEs
IS-SOSTENIBBILTÀ FINANZJARJA GĦADHA OBJETTIV IMPORTANTI, IŻDA L-PRIORITÀ HUMA L-IMPJIEGI TAL-ĦADDIEMA MALTIN U GĦAWDXIN.
The difference between the Labour Party and the Nationalist Party couldn’t be starker. Labour is all about handouts (taking your money and putting it in someone else’s pocket) and the Nationalist Party is about creating the right environment for people to prosper.
‘Twas always thus, and always thus will be.
Here are the links:
http://daphnecaruanagalizia.com/2014/05/malta-energija-pozittiva-has-just-sent-me-an-email/
http://www.doi-archived.gov.mt/EN/press_releases/2009/05/07.asp
The difference also lies in that most Maltese appear to prefer to live on handouts (it’s easier after all, isn’t it) than get off their cushioned behinds to make damned sure they prosper.
http://www.timesofmalta.com/articles/view/20140521/local/labour-mp-adds-4600-car-allowance-to-list-of-political-pay-packets.519871
and they were ashamed about the 500 euro increase…..
Wiggy had a quick jaunt on rinse-cycle.
http://292fc373eb1b8428f75b-7f75e5eb51943043279413a54aaa858a.r38.cf3.rackcdn.com/d6f46386703a4cc0332ac0127b039150583394609-1400649530-537c373a-360×251.jpg
The Nationalist should have remind the people about the tax reform that was carried out. We used to pay a rate up to 65 per cent during the Labour government. This had been reduced first to 35 percent and continued to go down further. With this reform people saved thousands of Liri or Euros every year.
Matrenza wants us to know he’s still around.
http://www.timesofmalta.com/articles/view/20140521/opinion/Election-eye-openers.
Well-paid from public coffers – http://www.timesofmalta.com/articles/view/20140521/local/labour-mp-adds-4600-car-allowance-to-list-of-political-pay-packets.519871, “4,000 Euros more than a minister’s pay”.
More big brother…….
http://www.maltatoday.com.mt/news/national/39174/credit_card_data_could_be_used_to_track_growing_maltese_online_purchases#.U3xZY_mSwpw
http://www.timesofmalta.com/articles/view/20140521/local/labour-mp-says-malta-is-under-a-new-clique.519936
Another brick in the wall …
http://www.bbc.com/news/business-27503017
Ahjar ma’ nghid xejn. http://www.timesofmalta.com/articles/view/20140521/local/dom-mintoff-family-gets-compensation-for-expropriated-property.519979
http://www.independent.com.mt/articles/2014-05-21/news/pn-launches-sticker-album-of-labours-golden-soldiers-5101551616/
Breaking News…
Yes, they say they have signed it …
http://www.timesofmalta.com/articles/view/20140522/local/power-deal-signed-but-upfront-30-million-payment-is-staggered.520110
Yes, that is what some will think they said.
But read the article carefully.
“…the signing of the contract with the Electrogas consortium, which will be supplying electricity and gas to Enemalta.”
Yes, we know that the Electrogas consortium has been awarded the tender under which the consortium “will be supplying electricity and gas to Enemalta,” but what contract exactly has been signed and with which government entity?
“Questioned yesterday, he confirmed that all four shareholders of Electrogas – the UK’s Gasol, Azerbaijan’s Socar, Siemens and local consortium GEM holdings – have put pen to paper on the contract.””
OK, but what contract exactly?
“..and the contract has not yet been published.”
Well, yeah, but which contract?
Why do they keep calling it “the contract” without telling us which contract? And why does The Times keep calling it the “Power deal” in the headline?
Something like this comes to mind:
“Oliver Stone and Steven Spielberg present: The top secret of the transparent and meritocratic Movement. The ‘power deal’ of an era. The erectic deal of a lifetime. It was signed behind closed doors. The media were not invited. The prime minister chose to hide it. The Minister wanted questions about it in writing. But one ‘journalist’ got to know about it. And now everbody is asking about it.
Starring Joseph Muscat and Konrad Mizzi.
THE CONTRACT.
Coming to cinemas near you. “
With the 30% holding, would this mean that the company would also have a 30% in the Marsa power station which will eventually be demolished?
That’s a prime site.