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Publish Date : 15-Oct-2013

Electro Gas Malta, represented by local companies Gasan and Tumas Group, was selected as the ideal bidder for the government's power purchase and gas supply agreement.

The consortium will construct a new power station run on gas and be in charge for the gas supply infrastructure.

The consortium comprises the German giant company Siemens as lead developer, which will capitalize around 20% of the project costs.

The consortium is likewise made up of Gasol PLC as lead member, African established company SOCAR Trading for gas trading, and GEM Holdings as an equity member made up of locally established companies comprising Gasan and Tumas Group of companies.

The assessment process was divided in four stages: administrative competences, minimum requirements, additional requirements and financial evaluation. The first two stages had a clear pass or fail, while the third and fourth stages carried a 20% and 80% scoring structure. The chosen preferred bidder placed first in both third and fourth stages.

Energy Minister Konrad Mizzi said that Malta was not accustomed to a selection process of this level.

Mizzi said, "The project management of the selection process was unprecedented and never seen under previous PN administrations. Electro Gas is truly a world-class bidder, combining foreign expertise and local investment".

The minister said that the bidder will sign a 15-year agreement and provide a fixed price for five years. The price will then be revised accordingly, "but will still be cheaper than the price offered by oil-powered plants." The price will be revealed after an eventual appeal process is over.

He said that he was very satisfied with the outcome and that this agreement will ensure the promised 25% decrease in electricity tariffs in March 2014.

The selection of the preferred bidder came after the founding of Malta Power Gas Ltd, which applied for the necessary authorizations and will at present be transferred to the selected bidder for €30 million.

Mizzi said, "This was more than the amount needed to make feasible the reduction of utility tariffs from next March".

The price does not comprise the renting of public land, which will be rented to the bidder on commercial rates.

The chosen consortium chosen for a 126,000 cubic metres of storage, a third less than the 180,000 outlined in the permit. This will entail 10 to 12 annual shipments of supply.

Konrad Mizzi declared that some Enemalta employees will be seconded to the chosen bidder, and will undertake training where necessary. However, new employees will be absorbed by the consortium.

The process began on 10th April when an expression of interest was issued. 11 were shortlisted from the initial 19 applicants shortlisted for the request for proposal in early July.

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