AG Installations secures €20.3 million tender for second interconnector machinery

AG Installations has been recommended to supply and install machinery for Malta's second interconnector project after its €20.3 million tender bid was selected as the most cost-effective.

The project involves the installation of shunt reactors at both ends of the interconnector, in Magħtab and Ragusa, as well as a 220kV/132kV transformer in Magħtab. The components are crucial for improving the energy transmission efficiency of the interconnector by managing reactive power and adjusting voltage levels.

AG Installations submitted the lowest bid among two contenders, with the other bid from Shining Star Infrastructure and Construction Ltd coming in at €24 million.

According to Interconnect Malta, the tender evaluation focused on cost-effectiveness, leading to the recommendation to award the contract to AG Installations. This recommendation is expected to be finalised soon, as the deadline for objections has passed.

This tender is the first of four related to the interconnector project, with others including the manufacture and installation of the submarine cable and additional infrastructure. The overall project is now projected to cost €300 million, with €165 million covered by EU funding. The project is crucial for Malta's future energy needs, aiming to meet growing demand and support renewable energy integration by 2030.