Ministers defend €360 million state guarantee for power station; Opposition leader says guarantee places €2,500 burden on every Maltese family

(Adds PN's press conference) An €88 million bank guarantee from BOV to the consortium building the new gas power station had only been an interim measure until an agreement over the €360 million state guarantee was concluded, two ministers said today. Finance Minister Edward Scicluna and Energy Minister Konrad Mizzi were addressing a news conference to give details about the controversial €360 million state guarantee. The guarantee, announced yesterday, is 80 per cent of the financing needed for Electrogas to build the new power station. The full loan of €450 million is 20 per cent financed by the consortium’s shareholders and is being provided by four banks: BOV, KfW IPEX-Bank Gmbh, HSBC Bank plc and Société Générale. Prof. Scicluna said the €360 million guarantee is for 22 months. The time-frame was based on the advice of experts who recommended that this was the maximum length of time within which the European Commission would be expected to approve the security of supply agreement with the consortium, under which the government is committed to buy electricity for the next 18 years. Once the Commission gave its approval, the guarantee would be withdrawn. Prof. Scicluna said...