Update 3 | €320 million Enemalta share transfer with Chinese finalised

€320 million energy deal between Chinese state-owned company and government finalised • includes new joint ventures for production of renewable energy and servicing power plants.

The deal signed at Castille will see the Chinese state-owned company own 33% of Enemalta
The deal signed at Castille will see the Chinese state-owned company own 33% of Enemalta
Signing the Chinese MOU for Enemalta in September 2013.
Signing the Chinese MOU for Enemalta in September 2013.

The deal between China Power Investment Corporation and government was signed today, paving the way for a confirmed €320 million investment in Malta's state-owned energy company Enemalta.

The Chinese shareholding will be of 33%, and Enemalta's debt is expected to be halved and be brought down to approximately €300 million.

The deal was brokered during Prime Minister Joseph Muscat’s visit in China in September 2013, when a Memorandum of Understanding was signed by energy minister Konrad Mizzi and Lu Qizhou, Chief Executive Officer of China Power Investment Corporation.

The deal will be brought into parliament for a resolution to be passed by MPs and amendments presented to the Enemalta Act.

Updated: 6pm Opposition leader Simon Busuttil withheld an official reaction until energy minister Konrad Mizzi makes his ministerial statement in the House.

Under the deal, €100 million will be a capital investment, €150 million invested into the Delimara power station extension (BWSC turbines) and €70 million invested towards the conversion to gas.

CPIC's subsidiary Shanghai Power Electric will manage the BWSC plant but Enemalta will retain despatch rights on the use of gas to power these turbines.

At 33% shareholding, the Chinese will have representation on the Enemalta board of directors but the chairman of Enemalta Corporation will be appointed by the Maltese government.

Two other projects by CPIC and the Maltese government will include a joint-venture to produce 300MW of renewable energy distributed into Europe, of which 100MW will be through photovoltaic panels and 200MW generated from wind energy. The company will be 70% owned by Shanghai Power Electric and 30% owned by the Maltese government.

The other investment will be another joint-venture, this time 70% owned by the Maltese government, to service power plants owned by Shanghair Power Electric in Europe.

Energy minister Konrad Mizzi said the valuation of Enemalta's share capital was based on the added value of the interconnecter between Malta and Sicily.

Enemalta's petroleum division will be hived off from Enemalta and constituted into a new national entity.