‘You don’t need tenders to ensure transparency’ – Muscat [LISTEN]

Labour leader questioned over transparency doubts on power station procurement.

Labour leader Joseph Muscat.
Labour leader Joseph Muscat.

Labour leader Joseph Muscat has insisted that a public tender for the procurment of his party's proposed 200MW gas powered power station, was not necessary to ensure that there would be transparency in the choice of private operator for the construction and operation of the power station, and the supply of gas.

Labour's plan to use natural gas as the source of 80% of Malta's energy mix includes issuing an expression of interest for bidders to come forward to build and operatr the new power station. Its claims to "hit the ground running" if elected have led the party to declare that it won't go for a lengthy, public tender - which carries with it the right of appeal on procurement decisions - but an expression of interest.

The expression of interest would give the government of the day a greater say in choosing at will the private operator to carry out the project, which includes a 25-year agreement for the supply of gas.

The PL's decision to go for an expression of interest has raised concern over the transparency of the procurement process. However, Muscat has claimed that tenders do not necessarily assure transparency.

"Labour is going to follow all EU regulations, as the government has done in other issues of energy procurement," Muscat said.

"We guarantee full transparency in the whole process - you don't need a tender to guarantee transparency," Muscat said.

"Our experience in the recent past has showed that while the Nationalist government issued a public call for tender, yet it failed to deliver on transparency".

Labour will eschew the standard tendering process for the procurement of a new 200MW power station, but the party is claiming that its expression of interest will still be in line with EU legislation.

Labour candidate Konrad Mizzi yesterday said a Labour government would carry out impact assessments and safety cases for its LNG terminal and power station within six months, before embarking on a project it intends delivering within 18 months.

"We're not going to buy a power station," Mizzi said when asked by MaltaToday whether Labour's proposed expression of interest was not a transparent method of choosing a private operator that will construct and supply gas to the power station.

"We are inviting a private operator to participate in the supply and generation of energy and this will be in line with EU law... we are going to push bidders to offer the lowest price possible."

The private operator will be a new entrant in the market for generating energy, but the energy will have to be distributed by Enemalta, the state-owned company.

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@malta l-ewwel.......il ftehim u id dokumenti kollha relatati mal BWSC gew impoggija fuq il mejda tal parlament u inghataw lil awditur generali biex jivestighom. altru li ma baqawx fil mohbi. @franco......kun af li jekk ma jkunx hemm sejha ghal tender, il gvern jista jghazel lil min irid u hadd ma jkun jista jappella mill ghazla finali. jekk tahseb li din mhux importanti, affari tieghek. pero nassigurak li il pl mhux se jghamel sejha ghal tender ghax il kumpanija hija diga maghzula u sar il ftehim maghha. IL PARTIT LABURIST JEMMEN HAFNA FIT TRASPARENZA!!!!!!!!SE JEHODNA LURA BHALL MA KIEN ISIR FIS SNIN 70. JIDDECIEDI KOLLOX IL MINISTRU.
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@philpb, do you think tha Joseph who has worked in the EU parliament, Profs Scicluna and Grech don't know how to go about doing things without breaking EU regulations. Stop parrotting you masters in Pieta and think with your own head or can't you?
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@ fenea , kemm tohlom ikrah. Minn meta it-tenders saru importanti? Mindu Vince Farrugia ghafas biex it-tender tal-gbir ta' l-iskart gewwa tas-Sliema jinghta lil kumpanija partikolari.? Kemm inghata xoghol taht gonzipn fejn jinfetah tender wiehed biss u l-ohrajn jigu skartati? Kemm kien hemm sejhiet li gew ripetuti ghaliex lil min riedu jghatuh kellu jibdel l-offerta tieghu ghaliex kien hemm offerti ahjar minn tieghu? Jew tender jinghata lil min jghamel l-akbar offerta flokk l-irhass ghaliex iktar jista jkun jikkontribbwixxi fil-maratona ta' l-ahhat tas-sena?
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Setting a precedent we do not need...for friends of friends!
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If Joseph Muscat pays me 4 Million Euro, I will find him a company on the YELLOW PAGES BOOK!!!!!!!!
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@fenea..tista tghdli x'kont ikummentajt dwar il BWSC.
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Cannot understand how Malta is going to get away with a simple Expression of Interest (EOI) procedure when EU stipulates that procedure for building infrastructure by private enterprise for Government is made up of a series of phases: 1)Expression of Interest 2) Pre-Qualification Phase 3) Qualified companies enter into discussions with Government 4) Issue of tender where only companies who pre-qualified and entered into discussions with Government can participate 5) Adjudication. Can anyone check officially with EU what is the correct process as only fair to inform people of correct process?
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il pjan tal energija dahhal lil pl go sqaq li biex johrog minnu irid bil fors jippublika qabel l-elezzjoni il ftehim li diga sar bejn kumpaniji u kuntratturi li se jinvestu fil progett. jekk ma jghamilx dan ikun haddiehor li jghamel dan. iz zmien itina parir.
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Follow all regulations and safety measures and get the blasted power station built.
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Ghadna nistennew lil PN jipprezenta l-programm ta l-energija tieghu. Kemm, meta u kif ser inaqqas it tariffi?
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Labour leader Joseph Muscat has insisted that a public tender for the procurment of his party's proposed 200MW gas powered power station, was not necessary to ensure that there would be transparency in the choice of private operator for the construction and operation of the power station, and the supply of gas.........TEORIJA GDIDA DIN. SUR MUSCAT MA TAHISIBX LI MINFLOK MA NOQODU INDURU MAL LEWZA, IKUN AHJAR LI SSERRAHH MOHH IL POPLU MALTI U TIDDIKJARA LI IL KUMPANIJA U IL KUNTRATTUR LI SE JINVESTU FIL POWER STATION IL GDIDA DIGA SAR IL FTEHIM MAGHHOM.
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Meta tigri xi haga negattiva ghal-gver, tkun taf qabel jifthu halqhom x' se jghidu ! Dejjem iwahhlu fil-PL u specjalment f'Dr. Muscat ! Din tigbah meta Gonzi jiftahar bl-impjiegi li jkunu holquhom l-imprendituri privati, qisu holoqhom hu, izda meta jintilfu l-impjiegi , forsi wkoll minhabba l-kontijiet gholjin tal-elettriku, allura f'dawk l.-imjiegi li jintilfu, Gonzi Ma jkollux x'jaqsam maghhom !
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If Labour sticks to EU regulations, then what is this hullabaloo all about? It will certainly be more transparent than the farcical tendering process practiced by the PN-infested Contracts Department in these last years.
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After the gonzipn experience, BWSC being one of them, who gives a duck if there are tenders or not. Who gives a shot if there is a company all lined up, if after all it means a reduction in utilities bills by 25% +. PL gets my vote because they have come up with the best feasible idea to reduce my bills and I don't give a darn how they do it, at least I'll be sharing in the bounty PL's project will bring about.
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Mirian - you have not understood the process that will be followed at all. First of all no government funds will be disbursed to buy the new power station because the investment will be made by the private sector. Secondly, expression of interest will present a level playing field for private investors to compete among themsleves on who will offer the lowest rates for selling energy to Enemalta. No one is querying labour's transparency except you for reasons best known to yourself. If you want a long career in journalism you should stick to facts which are sacred and not make unsubstantiated statements. Perhaps you would care to tell us who has raised concerns about this process because you did not quote any sources.
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Mark Fenech
But how is it that you at Malta Today talk about transparency and did not challange the gonzipn, why they used public funds to acquire a report from KPMG regarding PL proposals on energy. I have also my doubts if Mr. Seaman, has been brought to Malta, at Enemalta expenses. Did your reporters challange or asked the gonzipn, to confirm who paid for his visit. You are getting biased from day to day. Have a look at your today's publication of Malta Today to confirm this. Even Saviour Balzan article was disappointing wanting discussions on sex rather than on very important political issues.