€250 million Shanghai Electric Power transaction concluded

A €250 million transaction between the Chinese state-owned corporation Shanghai Electric Power, the Maltese government and Enemalta has been concluded.

Government sources said that the final transaction brought to an end negotiations between the Chinese company and the state utility corporation, to conclude the largest investment transaction Malta has ever experienced.

Contractual obligations and responsibilities were signed on 12th December, and now come into force.

Enemalta’s strategic partner, Shanghai Electric Power now holds a minority stake of 33.3% in Enemalta and in the coming months it will be investing in the conversion of the BWSC plant from heavy fuel oil to gas and gasoil.

The capital injection will also mean see the establishment of two joint venture companies that will focus on renewable energy and on the maintenance of SEP’s energy plants in the region.

Enemalta has debts of €840 million, and suffers from a lack of investment in energy distribution, and dependency on oil for electricity generation.