Malta secures China cash injection deal for Enemalta
Memorandum of Understanding sets ball rolling for a hefty investment in Enemalta by a Chinese government-owned energy company.
10 September 2013, 12:00am
Miriam Dalli
Miriam Dalli
2 min read
Prime Minister Joseph Muscat and a senior representative of the Chinese state-owned company. (Photo: Reuben Piscopo/DOI)
A memorandum of understanding signed today in China will see an energy company owned by the Chinese government invest "substantial amounts" in Enemalta.
The investment of around €200 million will come as a "direct cash injection" in the state energy corporation, government said. The investment will be made by Shanghai Electric Power, a subsidiary of China Power Investments. Through its investment, the company will become a minority shareholder at Enemalta.
"Government will remain in full control of the corporation," the government insisted. The memorandum was signed after months of negotiations and "is separate from the plan for cheaper utility tariffs which is on track".
Energy Minister Konrad Mizzi and China Power Investments CEO Lu Qizhou signed the memorandum of understanding in Dalian after Prime Minister Joseph Muscat held meetings with Chinese Premier Li Keqiang.
Although the investment amount will be finalised in the next six months, it is believed it will be effective in "considerably alleviating" the €800 million debt which has crippled the state entity.
Both governments have agreed that the arrangement will be ironed out and finalised within the next six months.
"We will then appear before parliament to ratify the agreement for transparency's sake," the government said, insisting that the Chinese investment will help "save the jobs which were endangered by Enemalta's debts" and invest in Enemalta's infrastructure.
The Chinese memorandum of understanding also includes two separate investments to be made by China Power Investments Corporation. The Chinese company is looking at the possibility of developing a renewable energy project and setting up an energy service centre, which would in turn create further jobs in the energy sector.
The energy service centre, the government said, will be used by China to service its power stations located in the Mediterranean.
China is looking at the renewable energy project as a stepping stone to Europe. In this sense, China was viewing Malta as a strategic partner in the Mediterranean.
"Thanks to this agreement, Malta will have an important Chinese company hailing from the world's second biggest econimic as its strategic partners," the government said.
This is the second memorandum of understanding related to energy signed by the Maltese government following the oil procurement agreement made with Libya last week.
It is also the second memorandum of understanding signed with the East Asian country recently, seemingly amplifying China's interests in Malta. In July, China approached the Maltese government to conduct a €4 million study on the feasibility of a bridge between Malta and Gozo.
Miriam Dalli joined MaltaToday.com.mt in 2010 becoming assistant editor f...
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Nixtieq inkun naf x.marru jaghmlu Fenech Adami, Gonzi, l-Ministri kollha tal -PN bl-entourage kollu taghhom-fic- Cina! Marru jaraw 'il-great wall of china 'minn fuq daharna flimkien ma ikla 'chinese' food?
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Honestly this clown Simon Busuttil cannot be for real he sad “from the other end of the world that they have agreed to sell part of a state entity. “so what you did say when your previous friend and clown meet Chinese Foreign Minister Yang Jiechi on February 2009 ? When you and your sick party are going to grow up and start respect the people choice, are you living on this planet don’t you realize that China will overtake the USA in a few years when it comes to the economy and progress.
You are going back to the old days when the other golden boy EFA was the clown in power and he used to come up with all sort of lies about China when you sad “however went on to raise further questions, asking whether China would have some sort of "strategic control" over the country”.
Go and find a circus you clown you will fit better there.
joseph mercieca •
Joe Huh. Will you be giving back to the government the money that you will save from the utility bills.
Just one simple advice do not let passion blind and guide you. Be objective when something is wrong take it to task but if it is good acknowledge it. That is what is called MATURITY.
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Is this a glass half empty or half full episode? That is the question. Did Joseph Muscat sell his soul to the devil like Austin Gatt sold his soul to Arriva (the devil if you will)? or maybe Joseph Muscat is trying to patch up the work of the past administration? After all look what is happening at Enemalta and just as bad at Air Malta, our National Airline? I think Joseph Muscat should be making the same deal with China and selling at least twenty five percent of Air Malta to the Chinese if not all of it. Sometimes when a horse goes lame there is nothing left but to shoot him and spare him the agony.I favour privatizing all of it and spare the Tax Payer from supporting a never ending business. So far both Enemalta and Air Malta have been nothing but a heavy weight on the Maltese Tax Payer. Both companies are costing the Tax Payer millions of euros and it seems there is no end in sight.
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Ma nistax nifem lill ftit minkom ghandna gvern li qieghed jahdem u qieghed isifer biex igib l'investiment u mux biex iberbaq flus il-poplu kif ghamlu il-ministi ta qabel. Imma mar il-libja u ha nigwadanjaw mil rohs ta kull tip ta fjuwil mar ic-cina ha gab ivestimen plus li ha jgib cash mony biex itafi mid-dejn li ghamel gvern ta qabel, u xota dridu isibu xi tajdu kontra dan li qieghed jamel u dan biss 6 xhur. Dan mhux qieghed jamel hekk ghal komixien jew ghal klikka bies imma ghal poplu malti kollu.Min hu kontra li sir il-gid ghax qieghed jamlu il-pl vera ma jisthoqlux li jkun malti
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I have googled this information:
Earlier this year Shanghai Electric Power formed a joint venture company with Alcoa USA, and two coal-related joint ventures in Indonesia and Australia
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Simon is against privatisation. If I understand correctly the Chinese company is going to have a 20% share. Does this means privatisation? What I expected from Simon is how his party managed to accumulate 800 million Euros in debt and explain to the maltese people if it was him in Government HOW he would tackle the problem?
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Proset Joseph! The economy-thanks to you and your team- has taxied towards the runway ready for take-off.
Adieu, instability; negative EneMalta and Malta ratings; adieu sky high electricity bills; adieu to Alibaba and his gang at EneMalta; adieu SimonPN!
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Awesome JM.
Further proof if any is needed,how right Dominic Mintoff was in building up the friendship between Chairman Mao's China and Malta.
True friends are those who,when in difficulty offer help,and not just with rhetoric as is often the case with 'our friends' from the West.
Anyone still remember the venom from the Church and the Opposition over this friendship way back then?.
Joseph MELI •
Furthermore,how ironic is all this trade with China is now being lauded and universally approved by seemingly most Maltese,as Mintoff was vilified and denigrated for dealing with this country way back when,whose human rights issues were, and remain, deplorable !However,cash is king and profit over prevention rules but would it be acceptable to do business with Assad's Syria regime right now?
Joseph MELI •
Kudos to Joseph for managing to secure this "takeaway" from China .Now let's all hope that they "carry-out " this agreement.But regarding the other also unrevealed terms and conditions MOU signed with Libya ,as the powerful Libyan Islamist brotherhood are calling for its PM's ,Ali Zeidan ,head and also calling for a vote of no confidence in him or the government over which he presides.Let the chickens hatch before counting them shall we?
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This article says it all.
http://www.theage.com.au/business/china/changing-china-set-to-shake-the-world-20130911-2tk74.html
Prosit gvern Malti.
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Imagine Simon Busutill at the helm of Malta and Gozo! Mamma mia! The future would have looked pretty rotten, with the same 'good fellas' at EneMalta, sucking the marrow from the bones off from this entity; whilst we, the business operators pensioners and common citizens footing the bill!
The proof of this is Busutill's henchmen defending the very people who got Malta's energy provider on its knees! 'Finanzi fis-sod' said GonziSimonPN: yes but only for the klikka!
Why does Simon Busutill think we are still so dumb to trust and believe in him?
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In China there are over 100 Billionaires,at the moment they are buying houses in Cyprus for over 300000 Euros and gain a permanent residence permit.Well done Dr.Muscat.
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What a difference a statesman makes! GonziSimonPN got EneMalta on its knees with its 800 million of debt: Muscat injects millions in cash to moribund EneMalta!
And, it seems that SimonPN are still at it, defending the very people who sapped millions of euros from Enemalta......straight into their private coffers!
X'ma jibnux office towers jiswew il-miljuni! The legacy of Alibaba is going to be a stain on SimonPN for decades to come!
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What a difference a statesman makes! GonziSimonPN got EneMalta on its knees with its 800 million of debt: Muscat injects millions in cash to moribund EneMalta!
And, it seems that SimonPN are still at it, defending the very people who sapped millions of euros from Enemalta......straight into their private coffers!
X'ma jibnux office towers jiswew il-miljuni! The legacy of Alibaba is going to be a stain on SimonPN for decades to come!
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Matters seem to be taking a turn for the better, aren't they now? China will soon be (again) the greatest nation on planet earth. Prosit to the new administration for recognising this fact, and seeking effective, commercial partners for progress to be really acheived.
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Prosit Aust. L-ewwel kemm Alla halaq serq. Issa il-PL biex ifendi ser igibna skjavi tac-Cinizi u ma ghandniex triq ohra. Pero nassigurak li mitt sena ohra meta forsi l-PN ikun fil-gvern, anke d-dirigenti tal-PN ikunu nofshom Cinizi. Prosit tassew, gawdu il-kirxa li akkwistajtu minn fuq dhar il-Gahan Malti.
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This is a very good deal and shows that this government has initiative and drive. Shangai Electric Power (SEP) is one of the top energy international companies and has lately invested also in Canada, apart from other countries. The idea of an energy servicing centre by SEP will serve to put Malta on the map as a centre of excellence in the heart of the Med for the servicing of renewable energy plant and equipment.
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Ergajna dawwarna l-arlogg lura ghaz-zmien ta'Mintoff.
L-iskola tal-muzika iddominata mill-koreani u ma tifhem xejn. u l-kumplament tal-postijiet parastatali l-ohra.
Dawn qatt ma issemmew qabel l-elezjoni
