‘You don’t need tenders to ensure transparency’ – Muscat [LISTEN]
Labour leader questioned over transparency doubts on power station procurement.
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.