A memorandum of understanding has been signed between Malta and China with the result that the state-owned corporation becomes a minority shareholder upon giving a cash injection of around €200 million to alleviate the financial situation of Enemalta.
The signing of a memorandum of understanding between Malta and China has illustrated the economic ties that exist between the countries. It also highlights the prospects of investment in the energy sector. This direct cash injection has had an impact on the ranking by Standard and Poor's. The cash injection has been made by state-owned China Power Investments Corporation which will become a minority shareholder in the Enemalta Corporation.
A time frame of six months will allow Malta and China to determine and conclude significant matters including the setting-up of a company which will be directed towards the servicing of other power stations which China owns in the Mediterranean region along with the possibility of designating a location whereby photovoltaic solar panels can be manufactured and perhaps assembled.
This memorandum of understanding between Malta and China brings hope that Malta will be instrumental in cultivating stronger ties between Europe and Asia particularly within the energy sector. China, being the world’s dominant solar panel supplier, will confidently assist Malta to meet its target to generate 10% of its electricity by means of renewable energy resources by 2020 subsequent to the signing of the Accession Treaty in 2004.
