Light at the end of the tunnel

The memorandum of understanding signed between Malta and China provides a desperately needed ray of light for Enemalta after its journey into a long dark tunnel, brought about by poor political management. The MOU provides an injection of cash, and clout, to an entity that desperately needed some breathing air to survive.

It is important to understand that the dire financial situation of Enemalta left it with few other options. It was facing more than €840 million in debt and was on the brink of total financial collapse.

The fact that the China Power Investment Corporation, a global leader in the industry, has invested in Enemalta is a vote of confidence in the government's energy strategy, a strategy which until some months ago was deemed unrealistic by a section of the political class. Having Global 500 and AAA credited companies investing in Enemalta is a sign that Enemalta is starting to turn the page after some turbulent years.

The cash injection will decrease debt, giving Enemalta a stronger hand when borrowing money. It will also improve the corporation's credit rating, which substantially affects the country's credit rating.

Creating ones jobs while safeguarding the present ones

Decreasing the financial burden on Enemalta not only safeguards jobs but creates new ones too. Enemalta didn't have enough funds to invest in either infrastructure or its people and this lack of investment led to huge production costs.

This government realised that the situation inherited at Enemalta was not sustainable. It had to take bold action and the effects of such an action have already helped in giving immediate results. In fact, earlier this week credit rating agencies have acknowledged the positive steps taken. The blunt reality is that the status quo was never an option. Some people are worried about a minority stake at Enemalta being owned by a Chinese company but the real issue was that Malta was fully dependant on oil, the only EU Member State to have a 100% dependency. That was the real danger. Having a strategic partner of such magnitude gives Maltese families and businesses a strong assurance that their energy future is safeguarded.

2020 Targets

One piece of news overshadowed by the bigger headline from China is that photovoltaic solar panels could be assembled in Malta in a joint venture aimed at the Maltese market as well as the European one.

More investment in alternative energy will provide us with the tools to face the future of energy management in our country. The creation of green jobs and an environment friendly industry will pave the way for our economy to be protected when oil prices spike. The moral point shouldn't even be the economy's safeguarding but a cleaner environment and less pollution. Time and time again, scientific evidence has shown that Malta is one of the most polluted countries in Europe and while efforts have been made in solar energy over the past few years it has not been enough.

Malta plans to reach the 2020 targets for the reduction of emissions but this is a big challenge. It needs a collective effort and requires government, industry and everybody else playing their part.

Evarist Bartolo is Minister for Education