The €360 million loan guarantee given by the government to Electrogas is to be withdrawn, Minister Konrad Mizzi said today.

The European Commission yesterday approved the power station deal in its entirety.

Dr Mizzi said the Commission’s approval had offered legal certainty to the project and eliminated any doubts whether it was good value for money.

He said the security of supply agreement with Electrogas could now be signed, leading to the withdrawal of the loan guarantee.

The minister said all agreements signed with Electrogas had been scrutinised by the Commission, including the winning bid submitted by the company.

These deals would be published shortly, he said.

Dr Mizzi also confirmed that a deal to purchase the power station should the security of supply agreement not be approved would no longer be in force.

Dr Mizzi’s permanent secretary Ronald Mizzi said the Electrogas deal would not distort competition, including the interconnector with Sicily.