Well, you can always drink some Koolaid if it gets too much

Published: July 25, 2014 at 7:39pm

public debt




15 Comments Comment

  1. La Redoute says:
    July 25, 2014 at 7:52 pm

    Ciccio – comments, please.

    http://www.independent.com.mt/mobile/2014-07-25/news/government-silent-on-power-station-delay-reports-5963481092/

    Reply
    • La Redoute says:
      July 25, 2014 at 9:23 pm

      http://www.timesofmalta.com/articles/view/20140725/local/Delimara-gas-fired-plant-still-on-track-for-March.529112

      Reply
    • ciccio says:
      July 25, 2014 at 10:53 pm

      @La Redoute

      The news article by TradeWinds was also picked up by another respectable LNG journal, the LNG Shipping News – see here, page 4.

      http://www.lngjournal.com/lng/index.php/downloads/finish/30-2014/296-31lngshippingnewsjune12

      So let’s hope the Minister will not reply to The Malta Independent telling them that TradeWinds is not a quoted journal.

      LNG Shipping News monitors the LNG sector in minute detail. In this edition here, they even quote prime minister Joseph Muscat saying “that mooring the tanker inside Marsaxlokk Bay was safer than outside the bay because of navigational factors.”

      They even quote Marsaxlokk Mayor Edric Micalle(f) who “called it (the tanker inside Marsaxlokk) ‘safer than using tanks on the shore.’”

      “European FSRU deemed safer than gas tanks”

      – LNG Shipping News (20 March 2014)

      http://www.lngjournal.com/lng/index.php/downloads/finish/30-2014/275-25lngshippingnewsmarch20

      And speaking of safety, didn’t the government reassure the Maltese public that accidents on LNG ships occur only once every 10,000 years? Ok, start counting to 10,000, because the last one happened this year:

      “LNGRV fire off India shuts down propulsion”

      – LNG Shipping News (26 June 2014)

      “Exmar Shipmanagement, managers of the 150,900 cubic metre LNGRV Explorer, reported that the vessel experienced a fire in the engine room on June 14 west of Mumbai, India.”

      http://www.lngjournal.com/lng/index.php/downloads/finish/30-2014/299-32lngshippingnewsjune26

      The news was reported here as well:

      http://gcaptain.com/engine-room-fire-disables-lng-carrier-explorer/

      The LNGRV Explorer was delivered to Excelerate brand new in 2008.

      “Excelerate Energy Takes Delivery of Next-Generation LNG Vessel”

      http://excelerateenergy.com/news/excelerate-energy-takes-delivery-next-generation-lng-vessel

      Contrast that with that rust-bucket, the LNG Gemini, from 1978.

      Reply
      • ciccio says:
        July 26, 2014 at 12:45 am

        What TradeWinds reported is just “speculation.”

        http://www.timesofmalta.com/articles/view/20140725/local/Delimara-gas-fired-plant-still-on-track-for-March.529112

        It was not speculation when:

        1. Konrad Mizzi said that he would obtain a 10 year guaranteed price on a power purchase agreement and a gas supply agreement.

        The truth: Now he says that he has fixed the prices for only 5 years.

        2. Konrad Mizzi said that there will be 2 relatively small gas tanks constructed on land in Marsaxlokk.

        The truth: After the elections he said he will be mooring a LNG tanker in Marsaxlokk Bay with a capacity of 130,000 cubic metres of LNG.

        3. Konrad Mizzi said that “drilling works for tests” had started.

        The truth: The drilling in question most probably refers to rock samples for laboratory test purposes.

        4. The government told The Times that the power purchase agreement had been signed.

        The truth: At the time of that news, Electrogas Malta Limited had not been formed as yet and project finance was not available.

        5. Konrad Mizzi said the consortium was a world-class team.

        The truth: The project leaders are Gasol plc, a cash shell company with no track record in building power stations, no business, and no cash, which has been delisted from a public stock exchange stating that institutional investors were not willing to give it any money.

        I prefer to believe the “speculation” of TradeWinds.

    • ciccio says:
      July 26, 2014 at 8:56 am

      Now that the media is back to cover this matter, perhaps they can give attention to these other points, which I do not remember reading in the local reports.

      1. Advisors on Enemalta deals.

      Who is advising the government on the Enemalta restructuring and deal structures, including (but not only) those with China and Azerbaijan.

      This question should address also who has been advising on the deal sealed in the September 2013 with an MOU in China for the privatisation of 35% of Enemalta and the total (?) privatisation of its only viable power station.

      I suspect the situation is not different from that on advice about the citizenship scheme, where the “advisor” seems to be the party with whom deals are being made.

      2. Eur 70 million included in two “investments.”

      I refer to an earlier issue discussed here. The details, revealed in March 2014, of the Eur 300 million “investment by China in Enemalta included Eur 70 million for the conversion of the BWSC plant to gas.

      But Konrad Mizzi’s analysis of the “investment” of Eur 370 million by Electrogas in the new gas plant and infrastructure at Marsaxlokk had included the conversion to gas of the existing BWSC plant for an amount of Eur 68 million.

      See reasoning here:

      http://daphnecaruanagalizia.com/2014/06/theyre-going-to-build-a-power-station-by-march-and-they-havent-even-started-yet/

      But this website had reported on a public statement by Gasol plc which said that Electrogas is guaranteed the repayment of capital expenditure.

      http://daphnecaruanagalizia.com/2013/10/what-we-have-not-been-told-by-our-government-electrogas-is-guaranteed-return-of-capex-whether-or-not-the-plant-is-ever-used-or-gas-supplied/

      So isn’t it important that the Maltese taxpayer is reassured that Electrogas is not paid for something which is covered by the Chinese “investment” and amounting to Eur 70 million?

      Me thinks the phenomenal Minister should explain.

      Reply
    • ciccio says:
      July 26, 2014 at 4:27 pm

      I can assure the phenomenal Minister that TradeWinds does not speculate.

      In Malta:

      12 March 2014: The Malta Independent reveals that the tanker to adorn Marsaxlokk Bay will be the LNG Gemini.

      http://www.independent.com.mt/articles/2014-03-12/news/lng-tanker-revealed-4234575873/

      Did the Minister reject that report as “speculation”? No, he did not.

      In the rest of the world:

      6 December 2013: Trade Winds publishes the news first.

      http://www.tradewindsnews.com/weekly/328674/older-lng-carriers-attract-offers-for-conversion-jobs

      “Older LNG carriers attract offers for conversion jobs”

      “One ship earmarked for a project while others are being eyed up but owners will need to sift offers to see which stack up as viable ventures”

      “Vintage LNG carriers are attracting offers from companies interested in converting them for use as storage or regasification units, with one vessel rumoured as singled out for a job.

      Industry sources say the 126,300-cbm LNG Gemini (built 1978) has been fixed on subjects to act as a floating storage unit (FSU) for a planned onshore regasification plant for Malta. The project, which will see LNG shipped in to feed a power plant, is being managed by the Gasol-led ElectroGas Malta consortium of which Socar Trading is said to be handling the vessel acquisition process.

      Gasol has said previously the group is looking for a 125,000-cbm vessel to take on charter for an 18-year period and has said there are a number of candidates on the market. The project partners plan to take a final investment decision (FID) by March so imports could get under way by September 2015.

      The LNG Gemini is one of three sisterships controlled by General Dynamics group company American Overseas Marine (AOM). The vessel has recently been redelivered from a short-term charter to Vitol…”

      And guess what, it’s Lucy Hine reporting from London again.

      I trust Lucy Hine more than I trust the phenomenal Konrad Mizzi.

      If the link to TradeWinds does not work, type text from article in Google search and an active link with article title should come up.

      Reply
  2. ken il malti says:
    July 25, 2014 at 8:05 pm

    “Labour government impoverishes Malta”, what else is new with these incompetents in power.

    It is their trademark.

    Reply
  3. Barabbas Borg says:
    July 25, 2014 at 8:17 pm

    What you vote for is what you get.

    Reply
  4. Kevin says:
    July 25, 2014 at 8:19 pm

    If one checks the latest figures this rise is paralleled by a rise in public sector employment (about 4% if I recall). So long term borrowing is not financing infrastructural investment as it did under the previous administration but it is financing iced buns.

    Do we have any economic/business journalists in Malta?

    Reply
  5. Freedom5 says:
    July 25, 2014 at 8:29 pm

    Not even the sale of passports is going to cap this sink hole. Perhaps the PN media can ask Lino Spiteri for his comments, since Dr Busuttil is on holiday.

    Reply
  6. H.P. Baxxter says:
    July 25, 2014 at 9:11 pm

    But the Minister running our economy is a Profs. So he knows best, heqq.

    Reply
  7. anthony says:
    July 25, 2014 at 10:06 pm

    Whatever happened to Il-Hofra?

    Reply
  8. MOU says:
    July 25, 2014 at 11:11 pm

    The MOU with Libya for cheap fuel will help us out of this mess now! Vizjoni bhal dik…tal-ghageb.

    Reply

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