Gas plant contract to be awarded in September, bypassing Contracts’ vetting

The Maltese ministry for energy and water conservation has launched an expression of interest for a power-purchase and gas supply agreement, for which bidders have until 10 May to submit their plans.

The EOI, launched at noon, concerns the provision of natural gas to Enemalta and the development of a 200MW power plant unit at Delimara.

Under the plans, Enemalta's power station at Delimara (phase II) will start running on gas instead of heavy fuel oil.

Energy ministry Konrad Mizzi said interested bidders seeking clarifications have until 30 April to contact Enemalta, where the state utility must reply by 4 May. On 10 May, all submissions will be opened and on 10 June a request for proposal will be issued to the shortlisted bidders.

The award of the contract is expected to be delivered by 30 September, but it will not be vetted by the Contracts Department - Mizzi said, saying this was not a public procurement endeavour.

"I can assure you that we will be following a mirror image of the public procurement process. We will be following all EU requirements and guidelines and the process will be as transparent as possible," Mizzi said, who added that a "significant" number of companies had already approached government.

"I can't say how many bids will be submitted, but it will be a healthy process. The choice of the bidder is going to be through a transparent and competitive process which will ensure that both Enemalta and the taxpayer receive the best value for money," the minister said, who claims the new plant will allow electricity tariffs to fall by 25% and water tariffs by 5%.

While no formal talks have been held with Brussels, the energy minister said the European Commission was aware of the project through informal discussions. "We will be holding bilateral discussions with the European Commission next May during the Energy Summit," Mizzi added.

Meanwhile, Enemalta will be carrying out pre-development work such as subsoil studies for the siting of the plant. None of this work will be infrastructural.

The preferred bidder will decide whether a liquefied natural gas terminal will be developed offshore or on land.

"We will be looking for the best optimisation. But if you look at our studies, without wanting to prejudice the process, you know where our preference lies," Mizzi said, when asked whether government preferred a floating terminal away from the Delimara peninsula.

Mizzi also confirmed that the preferred bidder could opt for the development of a pipeline.

A decision has yet to be taken on whether normal MEPA procedures will be followed for an environmental impact assessment and planning permits for the new plant and terminal; or whether Cabinet will fast-track the project.

"I am personally committed to see the completion of this project in two years," Mizzi added when asked whether he would resign if any delays occur.