Shanghai Electric takes stake in Malta energy firm

Associated Press

VALLETTA, Malta (AP) — Shanghai Electric Power, a subsidiary of state-owned China Power Investment Corp., has taken a 33-percent stake in Enemalta Corp., Malta's sole energy supplier.

The deal signed Tuesday is worth 320 million euros ($443 million) and includes an investment in the conversion of Malta's major power plant from one using heavy fuel oil to one that operates on gas.

Shanghai Electric Power and Enemalta will also form a new company to invest, design and build renewable energy projects in Europe and Asia. Energy Minister Konrad Mizzi said at the signing that the deal will nearly halve Enemalta's debts.

The Maltese government will remain as the majority shareholder in Enemalta.

The two governments reached the deal when Prime Minister Joseph Muscat visited China last September.

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