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No timeframe given for new power plant completion

Live blog of MPs' debate on energy policy • House of Representatives debates delayed construction of the Delimara power plant following a motion tabled by the Opposition

miriam
20 October 2014, 6:16pm
by Miriam Dalli
1 min read
Prime Minister Joseph Muscat
Prime Minister Joseph Muscat
22:41 With 35 votes in favour and 29 against, the government's motion to amend the Opposition's motion was approved. Miriam Dalli
22:31 PN deputy leader Mario de Marco is closing off this evening's debate, lambasting government for the lack of information and clarity on the project. Miriam Dalli
22:26 The Chair has no power to order an MP to table a document, Farrugia says, in a first ruling. The second ruling, concerning George Pullicino, will be given another time. Prime Minister Joseph Muscat confirmed the government will be publishing the document. Miriam Dalli
22:21 Parliament session has resumed with the Speaker reading out his ruling. Miriam Dalli
21:44 The session has been suspended while the Speaker retires to his room to listen to the recording and clarify the comments. Miriam Dalli
21:40 The bone of contention is that the Opposition want the ruling now. Speaker says he can give ruling another time. Miriam Dalli
21:39 Prime Minister Joseph Muscat asks Opposition to define their point of order. Miriam Dalli
21:39 The Opposition is asking for a ruling: in simple words, Anglu Farrugia has to listen to the recording and hand down a ruling. (If the ruling is taken now, the House will be suspended and resumed later on for the Speaker to give his ruling". Miriam Dalli
21:36 Following Mizzi's allegation, who said the information has now been passed on to the police, the Opposition is asking Mizzi to substantiate the allegations. Further shouts in parliament as Pullicino says "he is the cleanest of them all". Pullicino: "I challenge Mizzi to say which are the businessmen who speak against me." Miriam Dalli
21:35 Panic in parliament after Konrad Mizzi that a document in connection with a tender issued by the Nationalist administration for feed-in tariffs did not have the bank's signature. He said that when the bank was connected, "the bank said it was impossible that this document was issued by us." Miriam Dalli
21:33 Timeline: utility tariffs for families reduced in 2014 and next year for businesses. Currenlty works by ElectroGas in Delimara while tripartite discussions are ongoing to agree on a master schedule. “I assure that this timeline will be presented to you in parliament once this schedule is in place. But I assure you the delay will not be of years. I assure you that the timeline of project will be of 18 months, but first we have to coordinate between SEP and ElectroGas. I also assure you that the quality of the works will have nothing to do with the concrete used at Mater Dei.” Calling Pullicino “Georgie”, Mizzi said the government will show that the energy plan will work. Miriam Dalli
21:22 Mizzi said that the price of gas – following the five-year fixed period – will be linked to “an international index”. Miriam Dalli
21:18 Turning to the €320 million investment by the Chinese, Mizzi says that this investment by Shanghai Electric Power “is just the beginning”. Miriam Dalli
21:16 Point of order by Marlene Farrugia who says the motion was filed for the government to give timeframes. “Where is this explanation?” Farrugia asks, to which Mizzi says “soon colleague”. Miriam Dalli
21:14 Turning to the decommissioning of the Marsa power station, Mizzi reiterated that the plant will be shut down. Miriam Dalli
21:11 Engineering discussions with Shanghai Electric Power to be concluded in the coming weeks. Miriam Dalli
21:10 “Our principles are serious which will lead to security of supply,” Mizzi insists. He says that Enemalta will retain dispatch rights and the government had no obligation on the volume of electricity to buy from the Shanghai Electric Power. De Marco asks Mizzi to explain from where all this information derives. Speaker Anglu Farrugia says it at the discretion of the MP making the intervention to table the documents. Miriam Dalli
21:06 Mizzi talks about a seven-year business plan with Shanghai Electric Power while the price of gas and electricity will be fixed for five years. An investment in the distribution of electrical supply will be carried out. Delimara II, to be operated by gasoil, will be only switched on in case of emergency. The three main sources are the Siemens plant – to be constructed by Electrogas – the BWSC conversion to gas by Shanghai Electric Power and the interconnector. Miriam Dalli
21:06 Mizzi talks about a seven-year business plan with Shanghai Electric Power while the price of gas and electricity will be fixed for five years. An investment in the distribution of electrical supply will be carried out. Delimara II, to be operated by gasoil, will be only switched on in case of emergency. The three main sources are the Siemens plant – to be constructed by Electrogas – the BWSC conversion to gas by Shanghai Electric Power and the interconnector. Miriam Dalli
21:06 Mizzi talks about a seven-year business plan with Shanghai Electric Power while the price of gas and electricity will be fixed for five years. An investment in the distribution of electrical supply will be carried out. Delimara II, to be operated by gasoil, will be only switched on in case of emergency. The three main sources are the Siemens plant – to be constructed by Electrogas – the BWSC conversion to gas by Shanghai Electric Power and the interconnector. Miriam Dalli
21:06 Mizzi talks about a seven-year business plan with Shanghai Electric Power while the price of gas and electricity will be fixed for five years. An investment in the distribution of electrical supply will be carried out. Delimara II, to be operated by gasoil, will be only switched on in case of emergency. The three main sources are the Siemens plant – to be constructed by Electrogas – the BWSC conversion to gas by Shanghai Electric Power and the interconnector. Miriam Dalli
21:03 Incomprehensible shouting as Opposition asks government to table the “plan”. Another point of order by David Agius asking Mizzi to sustain statements. A third one by Tonio Fenech…and more shouts by Labour backbencher Joe Debono Grech. Comments are incomprehensible as his mic is switched off. Miriam Dalli
20:59 Mizzi is currently recounting how the PN in government had said the reduction in tariffs "was not possible" and the plan "was the gimmick of the millenium". Miriam Dalli
20:58 Mizzi says the government was improving the country’s credit rating after carrying out big changes. He explains how companies will become more competitive. Miriam Dalli
20:55 Mizzi starts listing what has been implemented: the reduction for households and next year’s reduction for businesses. In total the reduction cost €80 million. He confirms that a €320 million investment will be carried out which will ensure the halving of debts. Miriam Dalli
20:54 Energy Minister Konrad Mizzi takes the floor..."I am here to explain and not to make shows." Miriam Dalli
20:53 "Alice in Wonderland A1," Fenech concludes Miriam Dalli
20:52 Fenech says why should one ask about Enemalta’s privatisation when “Enemalta no longer exists” – referring to the setting up of Enemalta plc and two companies, Petromal Company and Enemed Company. He reiterates that the government was financing the reduction in tariffs by the increase in fuel prices. Miriam Dalli
20:48 In a spirited intervention, Fenech asks where the €30 million upfront payment from the ElectroGas and the €100 million from the Chinese capital injection. “The European Commission turned to you asking when the money is coming in. When is the money coming in?” Miriam Dalli
20:45 Reminding the “numerous” televised debates he had with Konrad Mizzi arguing about the completion timeline, Fenech says Labour had been clear about its pledge that included the two-year timeframe. Fenech says that Labour’s energy plan during the electoral campaign had never included the Chinese. Miriam Dalli
20:40 Nationalist MP Tonio Fenech takes the floor..."topic this evening is our Prime Minister's credibility". Miriam Dalli
20:39 Farrugia also asks for a definition of Malta’s plans to become an energy hub. She also asks what will happen to Malta’s and Enemalta’s ratings. “We have to be transparent, and the more transparent we are, the more people trust us.” Without entering into political bickering but simply raising questions, Farrugia has probably delivered the best intervention so far this evening, Farrugia reiterated her call for Mizzi to answer the questions being raised. Miriam Dalli
20:34 Farrugia says in 2013, Malta voted for a party that had presented a plan, pledging a reduction in tariffs, cleaner air and the construction of the new power station. “Not only: the Labour party promised a timeframe. Now, we all know that tariffs for households decreased and next up are for businesses. “But, naturally, people started questions on how and why the construction plan was delayed. So instead of fighting and bickering, the two sides of the House should have addressed these issues. And now we expect answers to be given this evening.” Farrugia says the people are not only concerned about the tariffs but what the long-term plan is. First question: information on the contracts, whether these were signed and what their implications are. Second question: when will we start enjoying cleaner air? Miriam Dalli
20:29 Labour MP Marlene Farrugia takes the floor Miriam Dalli
20:26 Cardona quotes the Chamber of Commerce who had flagged the price of water and electricity as one of the factors that hindered competitiveness. He urges the Opposition to look forward and acknowledge government's commitment to take the decisions that need to be taken. Miriam Dalli
20:21 He says that it was crucial for the government to work on an energy plan that helped investors. He’s currently quoting statistics and report highlighting Malta’s success in economic growth and industrial competitiveness. Miriam Dalli
20:17 Economy Minister Chris Cardona's turn Miriam Dalli
20:17 Callus says that in less than 22 months, the Labour government was collapsing. Miriam Dalli
20:16 Callus says that Enemalta’s best divisions were petroleum, the assets and the BWSC plant, prompting an off-the-mic comment by Mizzi that Tonio Fenech had been “one of Enemalta’s best assets”. Callus comments also raised more shouts by the government side, mostly by Transport Minister Joe Mizzi. Miriam Dalli
20:04 Nationalist MP Ryan Callus takes the floor. Miriam Dalli
20:04 After more off the mic arguing, Bartolo says the PM “is right in wishing they do not resign”. After more shouts, Bartolo says “he won’t be taking lessons of integrity from De Marco and definitely no etiquette lessons from David Agius”. Miriam Dalli
20:01 Bartolo is giving a summary of the history of the energy generation in Malta over the past 10 years. He quotes a letter publish in the newspapers by former Enemalta manager Joe Pace highlighting the reluctance in the past for Malta to switch from heavy fuel oil to LNG. At one point, Bartolo says that former PM Lawrence Gonzi had papers in hand showing that the previous administration had been informed of the oil scandal, first revealed by MaltaToday. According to Bartolo, the then head of the Security Service phoned the secretariat of a minister [unspecified] and told him to shred the papers. De Marco and Tonio Fenech urge Bartolo to either substantiate his arguments or withdraw. A third point of order is raised, and parliament explodes in shouts. The Speaker orders mics to be switched off. Miriam Dalli
19:48 “Labour’s slick machine helped it win the election, only to prove they were not ready to govern. Despite a roadmap, they lost the clock [sic].” Pullicino says the PN was always in favour of LNG use but against the government’s storage plans. “The EU pledged to help you with the pipeline. Taking the delay in your project as a blessing in disguise and change your plans of how you plan on storing LNG.” Miriam Dalli
19:43 The former resources minister says that while crude oil decreased by 22%, this was not reflected in prices consumers pay for diesel and unleaded. Miriam Dalli
19:40 Pullicino says government must now say when the project will be completed. Miriam Dalli
19:38 He now quotes Labour MP Marlene Farrugia who has called on the government “to act with respect and answer people’s questions’. Pullicino says the government “shouldn’t take the people for a ride” after the PM confirmed that tripartite discussion stalled the project. Miriam Dalli
19:36 Urging the government to publish the contracts signed between the government and Shanghai Electric Power, Pullicino said one questioned why the agreement had not yet been published. “Perhaps the government wants to hide the obligations listed in the contract?” Miriam Dalli
19:31 Next speaker: George Pullicino Miriam Dalli
19:31 Taking the floor, Prime Minister Joseph Muscat attributed his delay to the arrival of the Libyan PM. Turning to the debate at hand, Muscat said he came to one conclusion: “Busuttil wants to get rid of me but I want him to stay”. He said it was absurd that the Opposition was making a motion on utility bills which had increased in the first place under the watch. “Let’s start by bursting Busuttil’s bubble,” Muscat said. Referring to the first time the pledge was made, the PM said hydrologist Marco Cremona had said that Muscat would have to shoulder responsibility, by resigning, if no one answered Labour’s expression of interest to build a new power plant. “Even in simple research you failed, a research that could have easily been carried out by a Form 5 student,” Muscat said. The PM also criticized Busuttil’s speech, which according to Muscat was “riddled with words not worthy of parliament”. Muscat says it’s ironic that parliament was today discussing lower energy bills. “Of what are we being excused today? Of bringing millions into Enemalta? We used to discuss an Enemalta with an uncertain future; today we are discussing guaranteed jobs for workers; Enemalta who once was an albatross around the country’s neck and today standing on its feet.” Muscat went on to list the investment in Enemalta, changing the Delimara power station into one that ran on gas. Miriam Dalli
19:30 Busuttil called for Muscat’s resignation. Miriam Dalli
19:30 Sparks fly in parliament as Busuttil dubs Energy Minister Konrad Mizzi and Busuttil quips about Mizzi’s wife salary. Busuttil said that Muscat told the EU that clean energy was being provided thanks to the BWSC power station. Mizzi intervened, asking Busuttil to table proof of what he was saying. Busuttil said he was tabling in parliament a document submitted by the government to the European Commission. Miriam Dalli
19:03 The PN leader challenges Muscat “to stand up in parliament and order the reduction in fuel prices” – Muscat smiles. Miriam Dalli
19:02 Busuttil also said that one could easily conclude that the cost to reduce tariffs had been passed on to the cost of fuel, quoting a 22% difference in Malta’s prices when compared to international prices. Miriam Dalli
18:59 Latching on to Muscat’s comments that the reduction in tariffs did not fully depend on the construction of the new power station, Busuttil asks why the new power plant was needed. Miriam Dalli
18:57 The PN leader adds that people know that Muscat promises “everything to everyone”. “He promises the same position to more than one person; he promises the same promotion to more than one person.” Miriam Dalli
18:56 Busuttil says the PM had bound himself to the two-year deadline that he “changed his plans” and instead of making use of gas storage tankers on land he brought in an LNG tanker. He also says that the project was delayed because the PM promised two companies – Chinese state entity Shanghai Electric Power and the ElectroGas consortium – that each will be selling electricity to Enemalta. “How much electricity are we going to buy? How will pay for the excess? How will utility tariffs decrease if we will buy more electricity than needed?” Miriam Dalli
18:51 With a play on words, Busuttil said that the government instead of “hitting the ground running” it “hit the ground and fell off his face”. Quoting the PM’s comments from various media reports, including his interview on Dissett a year after he was elected to government, Busuttil said Muscat was “hoping” the people forget his promise. “You have become a prisoner of your own lies. This is a government built on a lie.” Miriam Dalli
18:49 Busuttil says that Muscat has failed to honour his word and what he promised during the electoral campaign – that the power station is completed within two years – was “just a lie”. “This is Muscat’s biggest pledge, one that was divided in two: first that utility bills are decreased and the second is, that if the power station is not completed within two years, he would resign.” Insisting that Muscat tied his pledge to his role, Busuttil said that Muscat should resign. Miriam Dalli
18:42 Prime Minister enters the chamber Miriam Dalli
18:42 Busuttil recounts a personal story, basically comparing the Prime Minister to a carpenter. “Last week I met an old friend of mine, he’s a Labourite but we respect each other. He said that ‘Joseph was like a carpenter’,” Busuttil said and went on to explain that this man’s daughter had ordered a kitchen but this had not been completed by the time she got married. The man went on to tell Busuttil that he no longer trusts his carpenter: “He’s like Joseph… his word doesn’t mean anything.” Miriam Dalli
18:38 Opposition leader Simon Busuttil takes the floor. Miriam Dalli
18:38 De Marco asks whether the Prime Minister will be present for the debate... government whip Carmelo Abela confirms he was on his way. Miriam Dalli
18:36 PN deputy leader Mario de Marco kicks off the debate by reading out the motion Miriam Dalli
18:26 Five minutes for PQs and debate to start soon after Miriam Dalli
18:25 In a 24-minute speech, the Speaker handed down his ruling on the Opposition’s request to broadcast the debate. “The MPs know well enough that the Chair is very much in favour of broadcasting parliamentary sessions,” he said. After explaining the existing procedures and the plans for transmission in the new parliament, Speaker Anglu Farrugia ruled that the Opposition’s request had been rejected. Miriam Dalli

Good evening and welcome to MaltaToday’s live-blog. The House of Representatives this evening debates the delayed construction of the Delimara power plant, originally scheduled for March 2015.

Last week, Opposition spokesman for energy George Pullicino presented a Parliamentary motion calling for a debate.

Presenting the motion to Speaker of the House Anglu Farrugia, Pullicino said that the Parliament deserved to be given an explanation by the Prime Minister on what he described as a “a dragging saga.”

De Marco said that Muscat’s actions lacked accountability and transparency, adding that despite government’s repeated promise to table the power plant contract in Parliament, this has never been presented to MPs.

“The contract, if there is one, was never discussed and we have no information on the terms and deadlines. We believe that the country deserves to have the answers to these questions,” he said.  

The motion demands a clear deadline for the completion of the power plant, and how government intends to cover the financial losses incurred by the delay.

Moreover, the opposition motion calls on government to explain the extent of these losses and what it intends to do to mitigate any repercussions which could hit families, businesses and Enemalta. 

Insiders have told MaltaToday that the agreement with the Electrogas consortium had to be revised when SEP acquired a 33% stake in Enemalta plc in March 2014, and became the owners of the Delimara power station extension.

On Saturday, energy minister Konrad Mizzi also confirmed with this newspaper that the construction of the new gas-fired power station in Delimara would not be completed by March 2015.

But he said that the energy tariff reductions for businesses would come into force as pledged.

Miriam Dalli joined MaltaToday.com.mt in 2010 becoming assistant editor f...
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