Issue link: https://maltatoday.uberflip.com/i/1339768
3 maltatoday | SUNDAY • 14 FEBRUARY 2021 NEWS CONTINUED FROM PAGE 1 In correspondence obtained through an EU freedom of in- formation request, the EC's In- novation and Networks Execu- tive Agency told Malta that its attempt to finance a €400 mil- lion pipeline with an H2-ready design lacked "justification to what extent [it] would actually be used for renewable gases". A senior government source said the EC's decision meant there will be no EU money to pay for the pipeline, and that now the government will con- sider some form of private fi- nancing, among other options, for the project to replace the LNG tanker in Delimara Bay. An EU source confirmed that there was little to no chance that Malta would be able to get any form of EU cash for the gas pipeline project, despite its im- portance for Malta's security of supply. In a letter to Melita Trans- gas, the government company responsible for the design and construction of the pipeline, IN- EA said that Malta's H2-ready design "cannot be considered innovative as the technology is available on the market and can therefore not be considered as a positive externality." Malta had already failed to obtain financing in 2019 from the Connecting Europe Facility (CEF) funds due to the Com- mission's de-prioritisation of gas projects in its bid to move fast on climate change targets. In 2020 it proposed to have the gas pipeline be able to procure hydrogen in a bid to placate EC decision-makers, but its propos- al did not provide a detailed as- sessment of alternative options for renewable gases and other decarbonisation objectives. Malta had planned to procure natural gas from the European mainland instead of the floating liquefied natural gas (LNG) ves- sel in Delimara. But the EC claims that the Maltese proposal did not suf- ficiently substantiate the claim that a gas pipeline can improve security of supply or a more competitive gas supply in Malta. "The expected impact on se- curity of supply beyond Malta appears.. marginal. The ration- ale behind the switch from LNG to pipeline gas should have been explained more in detail, also due to the uncertainty concern- ing future price developments. The H2 ready design cannot be considered innovative as the technology is available on the market and can therefore not be considered as a positive ex- ternality." The senior government source said Malta will still tap in- to available funding for other energy projects, but that the pipeline project will have to be paid for through other forms of funding, including tapping into private market sources. Malta's bid for an EU-funded gas pipeline was overshadowed by a European Ombudsman's inquiry on the gas projects that were included in the 2019 list of PCIs (projects of common in- terest) – Malta's included. The European Commission had ad- mitted that its sustainability as- sessment of candidate gas pro- jects had been "suboptimal due to a lack of data" – under a pro- posed reform, the EC has now ruled out unabated gas projects from applying for funding com- pletely. This means that billions in CEF cash will only be spent on renewable and low carbon gas- es, such as smart gas grids, and green gases, typically biogas and biomethane, but also hydrogen transmission pipelines and re- lated equipment. Malta's 159-km natural gas pipeline between Gela, Sicily and Malta was expected to be operational by 2024. It has been a high priority in the ongoing effort to link Malta to Europe's energy network, and will end Malta's "gas isolation". In 2020, the government mod- ified its pipeline project in the hope of winning the EC's favour by proposing a hydrogen-ready pipeline. Malta's electrical network was linked to Europe's via Sicily in 2015, but remaining on the pe- riphery from the EU's natural gas networks affected the secu- rity of Malta's energy supply. This pipeline would help Mal- ta cut emissions from shipping, as the aim is to slash emissions by at least 50% by 2050. MATTHEW AGIUS A Maltese court is to determine whether the chairman and the CEO of one of the world's larg- est banks, BNP Paribas, can re- fuse to comply with a previous summons issued by it and give testimony in Malta in the €1 billion lawsuit filed by Vertical Group Holding, a Maltese in- vestment house and its founder and chairman, the Malta-based, British-Israeli businessman Ja- cob Agam. The lawsuit was filed against the bank, its chairman Jean Le- mierre and CEO Jean-Laurent Bonnafé, after Agam accused it of committing a campaign of destruction against Agam's Maltese assets he alleged to be "inspired by anti-Semitism and hate." Agam and Vertical claim the alleged campaign against his interests started after he raised concerns with BNP following a number of major public scandals involving the bank. In 2014, BNP pleaded guilty to two criminal charges and agreed to pay almost $9 billion to resolve accusations it violated US sanctions against Iran, Sudan and elsewhere. According to Agam's lawsuit, the bank targeted him by abrupt- ly terminating Vertical's loan fa- cilities without justification and attempting to seize properties belonging to his family. Agam, who is Jewish, also alleged that BNP's French lawyer Valerie La- farge-Sarkozy used anti-Semitic language when referring to him. BNP however say Agam, 66, and his sister Ruth, 69, had tried to wriggle out of their financial obligations to BNP, by prevent- ing it from seeking repayment of monies loaned to the siblings' companies, using the argument that BNP's merger with its Sin- gapore arm was invalid since it took place without consent sought from the French finance minister. Agam – who resides in Malta – and his private equity investment company Vertical, filed their own legal claim in Malta against the bank and its Lemierre, Bon- nafé and Lafarge-Sarkozy. Although the bank said it has no business in Malta, Agam and Vertical claim that the actions of the bank and its executives have affected his and his company's business and reputation, alleg- edly resulting in damages of as much as €1 billion. Agam also claims such alleged misconduct caused significant harm to Maltese employees, in- dividuals and assets in Malta and alleged that they were "inspired by antisemitic motives and ac- tions". But the case has stalled on whether a decree in-camera given by Judge Joseph Zammit Mckeon back in August 2020, on whether Bonnafé and Lemierre should take the stand as witness- es and as required by law, can be appealed. This became an issue follow- ing a court sitting held last No- vember when the court, one day before the sitting scheduled on 3 November, reversed its own pre- vious ruling and exempted the bank's executives from appear- ing in court to take the stand. The November hearing was scheduled to address, amongst other reasons, questions regard- ing the bank's and its executives' alleged role in the Electrogas deal, even though the bank had previously denied any involve- ment with Maltese businesses. Following Agam's testimony, the bank and its executives had filed a motion requesting the right of appeal from the court order which summoned them to appear in the first place. A representative for Agam said that the bank's defence lawyers have suggested that the bank could send persons other than the defendant executives to tes- tify. Lawyer Pio Valletta, appearing on behalf of Agam and Vertical described the bank's suggestion as an "absurd request which makes a mockery of the court and the law." Valletta described as "bizarre and unheard of" the notion of assigning witness testimony to a third party. "This would allow the CEO and Chairman to escape their funda- mental legal duties to appear in order to give account as to their respective role in the alleged misconduct claimed by Agam and Vertical to include their role in the Electrogas transaction," he said. During the hearings held on 4 February, Valletta reminded the court that the Judge's rul- ing of last August was final and non-appealable according to Maltese law. Valletta accused the bank of employing delaying tactics to stall the case until the retirement – just a few weeks away – of Mr Justice Mckeon, who had re- peatedly questioned the reasons behind the bank's top executives reluctance to appear in court. Agam's lawyers and publicists are considering the request for an appeal as a delaying tactic to avoid BNP top brass from com- ing to Malta. They even suggest that they could be questioned over attempts to help finance the Electrogas project, although this claim has not been backed up as of yet. Agam is insisting there is a direct link between the bank and Electrogas. The bank had initially argued that the Maltese courts held no jurisdiction over this case since it had no business here in Malta. trogas. In previous testimony Agam claimed that not only did BNP Paribas do business in Malta with his company, but that that the bank's transactions in Malta were "fraught with allegations of corruption, blatant illegalities and causing severe damages to Maltese interests and individu- als." Private partner could be sourced for pipeline Court to decide on Agam-BNP feud Jacob Agam