‘We visited Azerbaijan to open up road with emerging energy company – Muscat

Prime Minister says memorandum of understanding involves Maltese-Azeri cooperation with regards oil and gas exploration

The government signed a memorandum of understanding with Azerbaijani state-owned energy company SOCAR (State Oil Company of Azerbaijan Republic) because it wanted to “open a new road” with one of the world’s top emerging energy companies, Prime Minister Joseph Muscat said in a short phone interview on ONE Radio.

“We agreed on deals regarding cooperation over gas exploration and the development of Malta as a logistics hub,” Muscat said of a memorandum of understanding that was signed by the Maltese and Azerbaijani governments in the Azeri capital of Baku earlier this week. “SOCAR is an emerging energy company that is looking beyond its borders and has already entered into partnerships and joint ventures around the world.”

“SOCAR have recently purchased a US-owned petrol pump company in Switzerland, and [former EU Commissioner] Jose Barroso, the French President and the Italian Prime Minister also entered into deals with them,” Muscat said. “The Opposition is casting doubts over Azerbaijan’s democratic credentials, but if the EU itself enters deals with them, then I don’t see why Malta shouldn’t. Besides, Dubai is hardly the most democratic place in the world but that hadn’t stopped the previous Nationalist government from entering into an investment deal with them over Smart City.”

SOCAR has a 20% shareholding in Electrogas, the consortium that has been contracted by the government to construct a new gas power station.

Muscat compared the memorandum of understanding with SOCAR to an earlier memorandum of understanding with Chinese state-owned company Shanghai Electric Power, who recently secured a 33% stake in Enemalta following a €320 million investment.

“When we first signed a memorandum of understanding with SEP, people were doubtful because they had never heard of the company,” Muscat said. “Now they’ve signed the biggest foreign investment deal that Malta has ever seen, in a company that the previous government had wanted to sell for €1, and have also started entering into deals with other European countries.”

‘More jobs for Maltese’

While he praised the generation of new jobs in the private sector, Muscat admitted that the government must do more to ensure that newly-created jobs are taken up by Maltese workers.

“Almost half of the newly-created jobs are being taken up by foreigners, either because the Maltese aren’t qualified for them or because they’re not interested in them,” Muscat said. “Therefore, we need to ensure that high-quality jobs are being created and that the Maltese are properly trained for them.”

‘Kappara junction project a top priority’

Muscat described the Kappara junction project is a ‘high priority’ for the government.

“We have the project plans and funds for it, but we want the Coast Road project to be completed first to prevent excess traffic congestion in the north,” Muscat said. “We aren’t planning these road projects because Malta will host a CHOGM meeting next year- god forbid that we remain stuck with that way of thinking. I understand people’s traffic problems. When I attend official visits, I make sure that my car isn’t surrounded by a police escort blasting their sirens so that I can get to experience what the people experience everyday.” 
“I accept criticism and use it to improve the government's performance. However, I can feel a sense of optimism in the country at the moment. This is a government that is delivering economic results beyond people’s wildest dreams.”