Chinese company to control ‘around 35% of Enemalta’ – Zammit Lewis
Shanghai Electric Power to control around 35% of Enemalta, junior minister Edward Zammit Lewis says.
16 September 2013, 12:00am
Jurgen Balzan
Jurgen Balzan
1 min read
The Chinese company which will invest a direct cash injection in Enemalta will control around 35% of the state utility, Parliamentary Secretary for Competitiveness and Economic Growth Edward Zammit Lewis said.
The junior minister's comments come in the wake of Prime Minister Joseph Muscat's denial that the Chinese company would be controlling a reported 20% of the state utility.
Speaking during an interview on Labour's One Radio, Zammit Lewis explained that Shanghai Electric Power, a subsidiary of China Power Investments, would not be a majority shareholder at Enemalta since it would be controlling "around 35%" of the company.
"The government will retain its majority control," Zammit Lewis said.
A memorandum of understanding was signed on Wednesday in China, an agreement which will see the Chinese company investing "tens of millions" as a "direct cash injection".
In an interview with MaltaToday, energy minister Konrad Mizzi refused to "speculate" on the stake the Chinese company will own, insisting that the two sides had agreed to trash out the details and finalise the deal within six months.
Mizzi also said that the ailing national energy corporation must turn a profit having secured a multimillion cash injection.
"Enemalta needs to be profitable, with a strong financial standing within three years," Mizzi said of the government's ambitious plans for the state utility which has over €800 million in debts guaranteed by the government.
Last week, energy minister Konrad Mizzi and China Power Investments CEO Lu Qizhou signed the memorandum of understanding in Dalian after Prime Minister Joseph Muscat held meetings with Chinese Premier Li Keqiang.
Jurgen Balzan was a MaltaToday reported from 2011 to 2017.
David Bongailas •
@nomis.....the PN should only stick to what it can do best.....meaning managing cafeterias.
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@Nomis101. You must have very bad dreams since 9th March, lol.
Jeffrey Camilleri •
So Simon was right when he said 20% and Joseph Muscat denied it. Cause it's more. Could be even more!! all behind our backs!! wake up people, get PN back in government!!
Priscilla Darmenia •
Ah! - this is much better than the 100% Gonzi/SimonPN gave MidMed Bank; the Airport facilities and the post. - At least the government still has a controlling interest of 65%
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Last week the public was assured that the Chinese company's share in Enemalta was going to be 20%. Now a week has passed & a rethinking has raised its participation to 35%. I would not be surprised if a further rethinking would raise its stake to 50% or plus!
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Last week the public was assured that the Chinese company's share in Enemalta was going to be 20%. Now a week has passed & a rethinking has raised its participation to 35%. I would not be surprised if a further rethinking would raise its stake to 50% or plus!
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Yeah pmurray, anything wrong with that? Enemalta has been turned into a junk investment, dead wood, by successive PN administrations. Now it's time to repair the grievous damage done and turn a new leaf. Enemalta badly needs a reputed strategic partner, otherwise we can ring the death knell for it.
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Well hello Malta - wake up!
This is really serious...the people in power don't seem to know the difference between 20% OR around 35%,,,do they know about the power of "negative majority" ?
This is getting TOTALLY out of hand: have anyone asked themselves the question : what VALUE does Chinese Power Investments add to Enemalta and the well being of the population of this country ??? In this case "cash is not king" ... if it ever comes....
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"Enemalta ... to be profitable, with a strong financial standing within three years,".
This is a sharp target every utilities consumer will be watching closely!
Lets us hope that someone will not craft ARMS style of tricks to fool us again as in the past!
Joseph MELI •
Slightly more than the 20% previously claimed to be their stake isn;t it!
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Joseph Muscat was right to say that the Chinese Utility Company will not own 20% of the state utility. According to Edward Zammit Lewis they will be investing and owning 35% of Enemalta. Maybe by next week it will come up to 50%. Next on the block should be Air Malta which is costing the TAX Payer millions of euros and getting practically nothing out of it. The government already made a very bad investment in Arriva which besides turning out to be a big headache is also costing the Tax Payer more millions of euros. When is this squandering of Tax Payer's money going to stop? When is the Tax Payer going to stop giving the government blank cheques?
