Enemalta has decided to contract Bonnici Brothers-owned UNEC Ltd to build a €37 million emergency power plant.
The local firm was one of four companies competing for the tender.
Publicly available data indicates that UNEC's bid was €2 million cheaper than one by Melita Power Diesel Ltd in partnership with Chinese firm VPower Holdings. Two other bids, by US-based APR Energy Holdings Limited and Italian firm Aggreko, came in at €44 million apiece.
Other bidders have until April 15 to object to Enemalta's decision.
UNEC Ltd will be bound to build the emergency diesel-powered plant in Delimara by the beginning of July and operate it for two years until Malta gets a second undersea interconnector to Sicily up and running.
It is the second major energy-related project entrusted to the Bonnici family in less than a year. The company is in business with French incineration specialists Paprec to design and build a €600 million waste-to-energy plant at Magħtab, having won that Wasteserv-issued tender last October.
Enemalta intends to build a temporary power station to have emergency back-up during peak summer months should one of its existing sources of energy fail.
The 60-megawatt emergency plant, announced during last year’s Budget speech, would be required to take over part of the country’s electricity generation in case of an “unplanned outage” in any major power plants during a high peak demand.
Originally, the government allocated €12 million to set one up and operate it. Enemalta subsequently calculated it could cost as much as €46 million. The tender awarded to UNEC Ltd is valued at €36.94 million.
UNEC Ltd, which is part of the Bonnici group of companies, is an importer of industrial equipment, from heavy machinery to marine engines.
It remains unclear how the company satisfies a requirement in the Enemalta-issued tender that called for applicants to have experience building at least one other power station worth at least €5 million in the past.
Times of Malta asked Bonnici Brothers on March 22 what experience the group has in building or operating power plants. The email remained unanswered.