It was 2013 when the Malta Gas and Power Project was launched, and subsequently implemented by Enemalta through the Electrogas contract. The project came to the rescue of Malta’s ailing economy. Fast forward a few years, and Malta’s credit ratings had skyrocketed, leaving many to wonder: Why did the Nationalist government stick to oil for power production?
Under the Nationalist administration, Malta was struggling with high energy costs, outdated infrastructure, and a heavy reliance on oil. Credit ratings were low, and there seemed to be no light at the end of the tunnel. But enter the Labour government and the Malta Power and Gas project—transforming Malta’s energy future and, surprisingly, its finances.
By introducing natural gas, the Labour Government slashed energy costs, brought much-needed efficiency to the energy sector, and reduced the country’s dependence on costly oil. In turn, global credit agencies like Moody’s, Fitch, and Standard & Poor’s took notice.
In 2015, Moody’s bumped Malta’s rating. In 2016, Standard & Poor’s pushed Malta to an impressive rating, while Fitch upgraded its outlook to ‘Positive.’ Suddenly, Malta was a beacon of economic stability, and investors were flocking to the island.
So, what’s the takeaway? The Electrogas project wasn’t just a win for the environment – at the time it was the financial lifeline that put Malta’s credit ratings into overdrive.