Muscat hints at more ‘strategic’ contracts with China

Having recently signed a contract with Chinese state-owned Shanghai Electric Power, Malta could sign more "strategic" agreements with China, while state-to-state agreements will not be limited to China only, Prime Minister Joseph Muscat said. 

In March, Chinese state-owned company Shanghai Electric Power purchased Enemalta’s BWSC plant for €200 million, €70 million of which will go for the conversion of the plant to gas. The company’s €320 million equity investment saw the company own 33% of Enemalta’s.

It now seems that the government’s deal with China is not the only one, and that Malta would also strike deals with other countries, including the United States of America, Gulf states as well as European countries.

Addressing a political activity in Mellieha, Labour leader Joseph Muscat hinted that more contracts with China could be in the pipeline, but failed to disclose any details about any possible agreements.

 Muscat explained a similar agreement between an Italian energy company and Shanghai Electric – a Chinese company associated with Shanghai Electric Power – earned plaudits, claiming that the government’s agreement between Enemalta and the Chinese company highlighted its “vision and its positive energy.

Reassuring Enemalta employees of their job, Muscat argued if it were for the PN, the Enemalta employees would experience a different fate, claiming that these would have met the “guillotine.”

“The future of Enemalta will not be put in jeopardy. Their job is safe in Malta and will not be requested to work overseas,” he said.

Muscat, who was being interviewed by Robert Musumeci – the government’s advisor on planning issues – also underlined that Malta’s strategic position is not being fully maximised, arguing the close proximity of the Freeport and the airport could offer greater opportunities.

“Malta’s strategic position allows it to be a logistic hub where foreign companies can use Malta as their hub, and use as a stopping point to other countries and to cater for European and North African markets,” he said.

Muscat also insisted that the heavy fuel oil will no longer be used at Delimara. Muscat underlined that Labour’s energy plan of converting the power station to gas will still be implemented on time.

“The heavy fuel oil will be removed. The then-Labour opposition had previously called on the government to convert to gas, but  these requests fell on deaf ears as others still insisted on using heavy fuel,” he said.

The prime minister also argued that energy tariffs would remain “cheap” during the government’s legislature, and  said that these were not reduced simply because the election is coming up. 

In a clear attempt to angle voters, the PL leader, who has used the electoral campaign to highlight the government’s “positivity”, urged the Labour faithful to persuade others to vote for the Labour Party’s candidates in the upcoming elections.

Echoing Muscat, Incumbent MEP Marlene Mizzi called on the electorate to use the election as a platform to express their trust in Joseph Muscat.

“These elections are the perfect opportunity to reward Joseph Muscat and the Labour government. Whereas Joseph Muscat hit the ground running instantly, Simon Busuttil will only hit the ground running in another two and a half years,” Mizzi said.

Calling on the electorate to “forget their problems for one day and vote for the party,” Mizzi insisted that no miracles were done during the first year, but nevertheless insisted that any grievances suffered by Labourites will be addressed.