Just as we thought: the China contract isn’t a contract at all

Published: December 17, 2014 at 10:04am

It’s just one of those loose agreements/memorandums of understanding that our government just loves to run about collecting from failed states like Libya and dictatorships like China and Azerbaijan.

This report in Times of Malta says:

The agreement between Enemalta and Shanghai Electric does not stipulate by what date the new Chinese owners of Delimara’s BWSC power plant will convert it to work on natural gas.

Neither does the agreement give a deadline for Shanghai to deposit the €250 million it has agreed to pay for its 33 per cent stake in the energy company (€100 million) and 90 per cent shareholding in the plant (€150 million) under the agreement.

Last Sunday, Prime Minister Joseph Muscat said the payment would be made by the end of the year. The agreement, published last week, also fails to mention how much energy the plant is expected to provide Enemalta to produce electricity, and at what price. At the same time, however, the contract precludes D3 Generation Limited (the company that owns the plant) from supplying energy to third parties.

china deal




9 Comments Comment

  1. PWG says:

    I’m confused. Shangai Electric’s subsidiary company is precluded from supplying energy to third parties and at the same time the government isn’t obliged to purchase energy from it.

  2. Mila says:

    “Do any of you remember the head to head between Simon Busuttil and Joseph Muscat on Xarabank before the MEP election in May? Hadn’t Joseph Muscat confirmed that he had signed the agreement then? Being economical with the truth again was he?” – Ann Fenech

    https://www.facebook.com/fenechann

  3. nistaqsi says:

    More chaos and confusion. Before the 2013 elections, they said they wanted to switch over to gas as quickly as possible and this was one reason why they wanted a new power station in place by March 2015 (now shifted to June 2016), instead of waiting for the completion of the gas interconnector.

    Also switching to gas was a priority for the PL to stop the BWSC being a ‘fabbrika tal-cancer’.

    The more time passes the more confusing it becomes. Can somebody please clarify what’s happening?

  4. pablo says:

    The real agreements are all backroom. This is dressing for the shop window.

  5. ciccio says:

    So basically we have a milestone schedule without milestones and without a schedule.

  6. J. Borg says:

    Elect Labour, get idiots. So what’s new?

  7. Issa Daqshekk says:

    ”Much ado about nothing” aka ”Castles in Spain.” aka ”bassa fil- bahar”,

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