A Sardinia-based company is poised to be awarded a €34 million deal to manufacture and install onshore cables for a second interconnector that is to be built.
SELT Spa has been recommended by Interconnect Malta as the preferred bidder for the deal. Given that a 10-day appeal window has now expired, the company is virtually assured of the deal.
SELT’s offer of €34.2 million was the cheapest of five received for the contract, beating a €41m bid by Hengtong Optic-Electric Co. Ltd., €44m offer by Prysmian Cavi e Sistemi Italia SRL, €59m offer by KonČar-Ket Ltd and €64m bid by the only local firm in the running, Bonnici Bros Ltd.
Founded in 2000, SELT describes itself as “an important energy transmission and distribution system operator in Italy” that has implemented projects across the Mediterranean and northern Europe.
Its Malta contract will require it to supply and install 21km of high-voltage cable in Sicily, running from the offshore cable landing point in Marina di Ragusa to the 220kV substation in Ragusa, as well as 1.8km of cable in Malta between the cable’s landing site at l-Għallis and the Magħtab terminal.
The tender recommendation decision was communicated on Saturday by Interconnect Malta, the state agency set up to manage energy-related infrastructural projects.
The contract is the second of four key tenders related to the interconnector project to be awarded.
The largest of the four, a €185 million deal to supply and install the undersea cable that will link Malta and Sicily, is still accepting offers until the end of October. Another open tender, valued at €12 million, is for the supply and installation of 220kV switchgear, control panels, and fire suppression systems.
Malta already has an operational interconnector linking its energy network to the European grid, but wants to add a second cable to boost its ability to source cheaper electricity and provide a fallback should the original cable be damaged.
The project is estimated to cost around €300 million in total, with just over half of that amount, €165 million, supplied through the EU’s European Regional Development Funding programme.
Energy Minister Miriam Dalli said the second interconnector project, dubbed IC2, “will provide the capacity needed to integrate more renewable energy, reduce our reliance on traditional sources, and pave the way for future offshore wind and battery storage projects."
Interconnect Malta CEO Ismail D’Amato said the tender award decision was an important milestone.
“While the complexities and costs involved are considerable, this milestone reflects ICM’s commitment to delivering one of the most critical infrastructure projects in Malta today. We remain focused on ensuring that every step taken is in the best interest of Malta’s future energy needs,” D’Amato said.