Memorandum of Understanding between Malta and China

Wednesday, 11 Sep 2013, 07:34


This morning in Chine a Memorandum of Understanding was signed between Malta and China for strategic investment in the field of energy

This should lead to a cash injection in Enemalta would mean a substantial reduction in the company's debt. This will remove a large part of the burden that the taxpayers have been carrying 25 years, while jobs of the workers which were put in danger by the debt will be secured.

The agreement was reached this morning by means of which China showed its intention to invest in our country's energy sector, through direct investment in Enemalta, with the possibility of setting up a company which assembles Chinese solar panels in Malta for Europe and which will see Malta being utilised as a centre from which China services power stations across the Mediterranean.

As a result of this agreement, Malta will have a major company from China, which is the second largest economy in the world, as its strategic partner. The Memorandum of Understanding was signed by the Minister for Energy Konrad Mizzi and Mr Lu Qizhou, Chief Executive Officer of China Power Investment Corporation, after a meeting the Maltese Prime Minister Joseph Muscat had with the Chinese Prime Minister, Li Kenqiang, in Dalian China.

The Memorandum of Understanding is the result of months of negotiations and, by means of which, the Chinese Government is showing its interest in investing in Enemalta Corporation. The value of the investment, which is expected to be substantial, will be determined after negotiations which will take place in the coming six months. By means of the Memorandum of Understanding, China Power Investment Corporation has agreed that it will be investing in Enemalta Corporation through its subsidiary Shanghai Power Electric. The Chinese will have a minority shareholding whilst the company would still be controlled by the Maltese Government.

As a result of this agreement, Malta and China have a six month time frame to set up a company between them, with Enemalta's involvement, aimed at servicing other power stations that China has in the Mediterranean. The possibility of photovoltaic solar panels being assembled in Malta is also being explored together with the creation of a joint venture for the installation of the PV solar panels both in Malta and abroad. This will also help Malta to reach the 2020 targets for the reduction in emissions.

China Power Investment Corporation is one of the largest corporations in the world which was looking for strategic partners in Europe and the Mediterranean at the same time that Malta was going through important changes in order to have a strong Enemalta Corporation, which will no longer be a financial burden on the taxpayers, while keeping safeguarding its employees' jobs and creating new ones in the process. For the sake of transparency and good governance, it is the Government's intention to have the agreement ratified by Parliament once the negotiations are concluded.

The Memorandum of Understanding will also lead to the creation of new jobs in both conventional and alternative energy, as well as new investment in infrastructure Enemalta. The agreement has no connection with the plan to bring down water and electric bills which is still on track.

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Comments (1)

Look and learn

- Wed 11-Sep-2013, 10:32

Pls Buzupn look and learn. That's how things are done seriously instead of crying xokkanti. Any comments from the loud, noisy journalist?

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