They’re going to build a power station by March. And they haven’t even started yet.
Published:
June 23, 2014 at 9:39pm
Not only have they not started on the building, but they haven’t even bought their shares in the Enemalta company, Malta Power and Gas Ltd, which is to be renamed Electrogas Malta Ltd.
Electrogas Malta Ltd does not yet exist. And surely that is a prerequisite for work to start on the power station itself.
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http://www.timesofmalta.com/articles/view/20140623/local/power-plant-will-be-finished-by-deadline-no-financial-problems-for-malta-plant-coordinator-says.524642
Perhaps it is coming in prefabricated modular form, from China.
Does Lego do them?
…and 2nd hand, “biex niffrankaw”.
Or flat-pack like Ikea
Its also possible that they are talking of a painting of a gas power station.
I liked that bit where we are told that ‘de-listing (from the London Stock Exchange’s AIM) has no impact’ on the project in Malta.
Where on earth did the chap get that from?
I don’t know why, but for a long time now I’ve thought that actually there is no power station being built at all.
Coming to think of it, the only way they can build this blessed power station is if they get a bunch of underpaid Chinese workers over to work on it morning noon and night non stop in poor working conditions and threatened to get it done in time or face the consequences.
Either that or there is no power station deal at all. This is all just a case of “The mountains will labour”.
‘Electro Gas is truly a world-class bidder, combining foreign expertise and local investment,” Mizzi said.’
http://www.maltatoday.com.mt/printversion/30638/#.U6iHFbEkS6I
Konrad Mizzi demonstrates ‘world class’ incompetence.
Besides construction the testing, commissioning and safety certification can take months to complete.
Electro – Gas down ghal gol-hajt.
Electro Gas fenominali!
Has anyone noticed the increased frequency of power outages? Pretty certain it’s not always planned power load shedding. And such outages are not always reported in the media.
And do you know why, because now we have the taghna lkoll attitude.
Power plant to be ready in less than one year? Souds just like a far far far away fairytale.
We might even have hundreds of Chinese workers swarming like ants on the project and make it in time. If that happens, would be interesting knowing their work conditions. We just have to wait and see. Joseph Muscat and Konrad Mizzi have too much at stake on this promise. After all we have a prime minister with his motto being “the end justifies the means”.
And did you see this by Marlene Farrugia ?
http://www.independent.com.mt/mobile/2014-06-23/opinions/we-all-need-to-feel-safe-5582225410/
Long comment split in 4 parts.
I think that it is about time that Kurt Sansone, the ‘energy expert’ of The Times, did some more ‘positive energy’ investigative journalism for the benefit of the readers of The Times, rather than serve as a mouthpiece for the stories given to him.
It is increasingly looking like Kurt Sansone is to The Times what Nico is to The Malta Independent, except that Nico seems to get his “stories” right most of the time and creates more passionate and sensational debate than Sansone. Perhaps Sansone needs to adopt the quip “mela jien il-pappagall tieghek”?
But at least now we know that Kurt Sansone reads the news on this website first.
For example, some investigative journalism would have revealed that in April 2006, the London Stock Exchange had suspended the listing of Gasol’s shares on the Alternative Investment Market (AIM) because the company was considered to be a “cash shell” and had not done any deals since its admission to listing:
“Cash shell companies suspended on Aim for failing to do deals” – The Guardian
http://www.theguardian.com/business/2006/apr/04/2
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=32650341482522
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=32650341483596
It looks like not much has changed between 2006 and 2014. It seems that Gasol has failed to complete any important deals throughout those years. Its recent annual and interim reports continue to show that Gasol remains a small company with no trading activity and a poor financial position.
Meaning that Gasol remains a cash shell. And how can we be sure that Gasol is not a “dirty” cash shell?
“A cash shell consists of a company name, a stock market listing, a director or two and a lump of cash in the bank. Sometimes divided into ‘clean’ or ‘dirty’, the former are purpose-built to buy suitable companies in certain sectors, while the latter are companies where a previous business was sold and there is nothing left apart from the remains of their bank balance and some possibly troublesome shareholders.”
Two types of question come to mind.
1. Is Gasol seeking to cancel its listing in order to avoid more severe action by the London Stock Exchange, such as a possible forced delisting from the AIM because it has failed to carry out any deals? Such an event could be very embarrassing to the company and its directors.
By deals I mean acquisitions of business and related financing.
An acquisition could involve an established company – even if, as Gasol points out, these are likely to result in ‘reverse acquisitions,’ meaning that, in effect, Gasol becomes the acquired company.
Between December 2013 and February 2014, Gasol was seeking to carry out the acqusition of Energie de Côte d’Ivoire S.A., but this failed due to some conditions dependent on third parties not being fulfilled.
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=1664121586057216
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=1696183516921856
In January 2014, Gasol had put in place financing for that deal with the help of Deutsche Bank, suggesting that Gasol was in a position to obtain financing for its deals.
http://hsprod.investis.com/ir/gas/ir.jsp?page=news-item&item=1673233359175680
An acquisition could alternatively consist of deals like that with the Electrogas Malta Consortium, which has been awarded the tender for a power purchase agreement with Enemalta for 18 years subject to the construction of an LNG plant with an investment of around Eur 370 million. In this case, Gasol must be actively looking around for financing its part of the deal. So far we have been told that when financing for the Malta project is finalised, Malta Power and Gas Limited will be renamed as Electrogas Malta Limited and the shares in this company will be acquired by the members of the Electrogas Malta Consortium.
2. Or is Gasol being acquired by some private interest which may be interested in providing the finance for the Malta project – thereby taking indirect control of 30% of what will be Electrogas Malta Limited – but which does not wish to publicise the change in ownership and would like to delist Gasol now that it has bagged a deal in Malta?
On point 2, you may find some insight on this link which outline a deal that Gasol recently made with a Chinese company and, I suspect, has an impact on their Malta power project.
http://www.proactiveinvestors.co.uk/companies/news/68127/update-gasol-unveils-new-chinese-tie-up-for-african-gas-to-power-projects-68127.html
“Gasol has unveiled a significant new partnership to build power plants in Africa alongside China Machinery Engineering Corporation (CMEC).
The AIM quoted firm, which is establishing itself as a services provider for Africa’s oil industry, plans to develop gas-to-power business alongside the Chinese engineering firm which specialises in power projects. Gasol’s plan is to develop power plants in the African markets where it supplies gas. Together, Gasol and CMEC have agreed to cooperate on power projects.
Gasol will offer CMEC a right of first refusal to be the exclusive engineering contractor for the plants. CMEC, meanwhile, will carry out, at its own cost, feasibility studies for proposed plants, and if such ventures go ahead will assist Gasol in arranging project financing with Chinese banks.”
On point 1,
Notice to shareholders as issued by Gasol.
http://www.gasolplc.com/media/19149/gasol_shareholder_circular_23_june_14_final.pdf
Gary, very interesting links.
Your quote from Proactive Investors reminds me of the following quote from Malta Today:
“Dalli said the story, appearing first in the International Herald Tribune, was replete with insinuations that he was trying to move millions of dollars to the Bahamas.
“These millions of dollars did not exist. On the 8 July I discussed the objectives of the proposed philanthropic project to get an understanding of what its pertinence [was]. No funding was discussed. In August I again visited. I met Mr Barry Connor for the first time as he was visiting the house every day. Discussions were very open and in front of everyone present. When potential funds and their management were mentioned, Mr Connor stated that he was the beneficiary of a trust in the Bahamas and that that fund can be used. I asked how trusts in the Bahamas work.”
Dalli, who told the Herald that he was given voluntary advice on a philanthropic initiative with Africa as its target continent, said that in the Bahamas he talked about “an innovative cheap power generation that would be very useful to be used in the project.” ”
MaltaToday, 2 July 2013.
http://www.maltatoday.com.mt/news/national/28034/dalli-offers-power-of-attorney-for-meps-to-verify-bahamas-denials-20130702
I do not know the answers to those questions. But maybe Kurt Sansone could ask Mr. Kunz some more questions, like:
1. Since Mr. Kunz has given reassurance to the readers of The Times that Gasol has no problems with the raising of capital for the Malta deal, can Mr. Kunz tell us who is providing the finance for the deal? In the case of the acquisition of Energie de Côte d’Ivoire S.A., Gasol had made a public announcement about its financing deal with Deutsche Bank. It seems that no similar announcement has been made so far about the Malta project. And we know that Gasol will need about Eur 120 million for its 30% share in the Electrogas Malta Consortium.
2. Under what terms will those funds be made available to Gasol – share capital, loans, interest rates?
3. Are there any current plans or discussions under which the ownership and control of Gasol are likely to change in the foreseeable future? If in the affirmative, who will be acquiring the control of Gasol?
This website does not allow me to send in the link for the definition of cash shell which I reproduced above. It is from growthbusinessDOTcoDOTuk.
For a long time Kurt Sansone was Saviour Balzan’s henchman/sidekick/mini-me at Malta Today. Can’t expect better than that. He’s operating at the top of his professional skills, such as they are, as it is…
I would rather say ‘operating at the lowest level of his professional incompetence’.
I have some more important investigative work for Kurt Sansone. It’s a mission under the name of:
“THE EUR 70 MILLION THAT FEATURES TWICE”
When back in October 2013, Energy Minister Konrad Mizzi announced that the Electrogas Malta Consortium had won the tender for the Enemalta power purchase agreement, Gasol plc published a statement to investors saying that the project would cost Eur 370 million. This was roughly the same figure which Konrad Mizzi had mentioned during the electoral campain in 2013 – Mizzi had quoted the figure of Eur 376 million. This had prompted the story here:
http://daphnecaruanagalizia.com/2013/10/unmitigated-arrogance-breeds-carelessness-and-indifference-and-that-means-you-leave-spoor-which-others-can-follow/
But back in January 2013, Konrad Mizzi had even provided a breakdown for the figure of Eur 376 million as follows:
1. New generation plant (200MW): Eur 166 million.
2. Gas supply infrastructure: Eur 142 million.
3. BWSC conversion to gas: Eur 68 million.
Total: Eur 376 million.
http://www.timesofmalta.com/articles/view/20130108/news/pl-tariffs.452366
Recently, in March 2014, Energy and Ovaltine Minister Konrad Mizzi signed a deal with Shanghai Electric, a company controlled by the Chinese government, under which the Communist Party of China will invest Eur 320 million in energy in Malta, as follows:
1. Injection in the capital of Enemalta: Eur 100 million.
2. Capital injection in new company which will acquire the BWSC plant: Eur 150 million
3. BWSC conversion to gas: Eur 70 million.
It’s all detailed here:
http://www.timesofmalta.com/articles/view/20140311/local/agreement.510236
Excuse me, but who exactly is going to invest in the conversion of the BWSC plant to gas: Is it Shanghai Electric, or is it Electrogas Consortium Malta?
So can the Minister give the correct amounts for:
1. The investment in the new gas project by the Electrogas Malta Consortium and what it is made up of?
2. The investment by Shanghai Electric in Malta and what it is made up of?
“The miracle of the spontaneous duplication of Eur 70 million.”
The only thing that Konrad Mizzi can create in 9 months is a baby. The question is by whom?
Surely not from his ex-wife who is living somewhere in China.
It’s quicker to build a power station than having a baby – a world record.
It will be interesting to see how they are going to spin this one. I can almost hear their marketing wheels whirring!
Why on earth you are wondering that it is not possible to build a power station in nine months. I invite you to read comments by pl experts such as Borg (slm) in the TOM blog and you will find out that the Oncology hospital was build and almost finished during the last year. It is really a fantastic pl ad ministration when one considers all planning, site clearance, excavation works, concreting etc. and to crown it all according to these experts the cost is going to be much less than the estimated bill of quantities.
Do you think that such trivialities as the proper setting up of a company is important for this government in doing what it wants to do?
There will be a “power station” installed by March. Mark my words. The devil is in the detail.
An oilfield type package mini power station (a turbine / generator) can easily be bought and installed in 3 months out if a couple of containers and voila’ the phase one of the promised power station.
No need for the prime minister to resign at that point.
In plain Maltese thought and plain English language, it simply and plainly stinks.
If I recall correctly Joseph Muscat promised to resign if the new power station isn’t ready this March.
These discussions are very interesting.
In the GASOL brochure they show Dr. Rilwanu Lukman as being a KBE which in UK terms is most interesting. You may wish to look at this.
In the GASOL notice to shareholders (the Public and Others) they talk of de-Listing but do not give any compensation for doing this. This implies that the shares are to be de-moneterised and from all accounts may be worth just one eurocent each. This means that their valuation will be written off. We wonder what BDO are doing. They will be tarnished by this exercise.
GASOL is shown as being sold off to the Azerbaijan company in the press in Azerbaijan, but it cannot complete the issue until it is de-listed.
The WAGP programme is not going to happen. The Ivory Coast has withdrawn.
With such a mess financially what does Daphne now think about this issue?
A BBC programme is being organised to investigate GASOL and it looks as though this will not be available until after the de-Listing. Hmm? Interesting Stuff.
The press this week showed that the construction work was to be completed by March 2015. With 9 months to go this will be absolutely amazing. No orders have been placed by the GASOL company for any work, because they have no liquidity.
ElectroGas Malta Ltd cannot place any orders because it is not even set up as a company nor have the directors been appointed and a board meeting convened to confirm its status.
Now we allegedly hear that the Federal Exchange in the USA is currently investigating the affairs of the company and its dealings.
What are your public sources? The one about an Azerbaijan company buying GASOL? Can you link any internet sources?
And can you tell us more about the BBC programme about GASOL?