Plans for new Lm40m power generation plant

Enemalta Corporation is expected to purchase a new Lm40 million generation plant for the Delimara power station which will increase the corporation's electricity generation capacity by 20 per cent.

Enemalta chairman Tancred Tabone told journalists yesterday the corporation had made a presentation to the government over the project and the corporation was now waiting for the green light from its shareholders.

"It seems the politicians are conscious of the need for this investment. Once the formal decision to go ahead with this project is taken, Enemalta will issue a call for tenders," he said.

The new equipment will be installed over "a number of years".

Mr Tabone said the new generation plant, expected to be a combined-cycle plant, will have new state-of-the-art equipment, which will be bought according to environmental standards in conformity with European Union requirements.

The power station capacity is of 460 megawatts. The peak of the demand by consumers was registered in August when 396 megawatts were requested.

Mr Tabone said the summer months were hot and prolonged. "Before, the peak demand for electricity used to take place in winter. However, due to a significant increase in the use of air conditioners, the demand for power in summer has exceeded that of winter."

Mr Tabone also announced that after Enemalta had registered a financial loss of Lm7.5 million for the first nine months of its financial year, the situation has now improved significantly and the corporation was expected to break even in the financial year ended September 30.

Mr Tabone said that at the end of August, the corporation was only Lm100,000 in the red.

Mr Tabone referred to power cuts that occurred on Monday afternoon when one of the main cables linking Marsa South Distribution Centre to Mosta Distribution Centre failed. This caused power failures in some areas in the north of Malta and in Gozo.

Mr Tabone said investigations by the corporation revealed that the damaged section of the cable was situated close to a construction site in Attard. He said steps were taken immediately to repair the cable. Mr Tabone said the cable was accidentally damaged earlier on due to civil engineering works that had been carried out in the area by a contractor.

Enemalta said yesterday that due to adjustments in oil prices, the price of unleaded petrol went down to 35.6 cents from 35.7 cents and that of LRP also went down by one mil to 38.6 cents from 38.7 cents.

The nominal drop in the fuel prices reflects shifts in the price of petrol on the international market which took place between July and September. The price of diesel and paraffin has remained unchanged.