Union welcomes Chinese acquisition of Enemalta stake

The General Workers Union's chemical and energy section has welcomed a Chinese takeover of 20% of state energy utility Enemalta.

The GWU, from whom Labour enjoys a historic backing, said the deal with the Chinese government-owned China Power Investments Corporation to put up a €200 million stake in the ailing energy corporation, said the deal would strengthen both its finances and the security of its workforce.

GWU secretary-general Tony Zarb said he had received a call from Prime Minister Joseph Muscat from Dalian, in China, where he is attending the Summer Davos Forum, "in which he gave me a guarantee that despite the size of the investment, the Maltese government would remain the principal shareholder in Enemalta, which will still be a public entity. He said this would create new opportunities for the Corporation's workers."

Zarb was also in contact with energy minister Konrad Mizzi, who reaffirmed Muscat's guarantees.

"Our appreciation stems from the fact that this agreement will improve Enemalta's financial situation, and strengthen the security of workers there," Zarb said. "We've supported the creation of green jobs and this was one of our proposals to the parties during the elections," he said, referring to a renewable energy component that will be brought to Malta by the Chinese investors.

The union's message was echoed by business associations, who said the MOU in the energy sector was important for Enemalta, a corporation valued at some €1 billion, but whose operations are wracked by €800 million in liabilities.

"The agreement is consonant with the Chamber's representations in favour of a secure, cost-effective supply of electricity for its members... we look forward to more details on the possible spin-offs of this deal," the Chamber said.

On its part, the Chamber of SMEs (GRTU) said the Chinese deal was important for Malta. "China offers many important opportunities for the growth of Maltese business. This investment should reduce the burden of debt that Enemalta has. It will also create new jobs which is why the GRTU appeals to the government to invest more in human resources in the energy sector."