Nicosia, Cyprus. Cyprus is returning €67 million in funding for the LNG terminal in Vasiliko to the European Commission, Energy Minister Michalis Damianos said on Tuesday. He told MPs he could not give a timeline for completing the project.
Return of EU funds
Damianos said the €67 million granted through Cinea, the European Commission’s Climate, Infrastructure and Environment Executive Agency, was being returned in two ways: through deductions from other EU funds allocated to Cyprus, and the remainder in cash.
The amount represents part of the roughly €101 million grant approved for the LNG project in 2017 under the EU’s Connecting Europe Facility. Only €67 million was disbursed.
Repayment demand and investigations
Brussels’ demand for repayment followed allegations of irregularities in the tender award process to a Chinese-led consortium and the mismanagement of the project.
The European Public Prosecutor’s Office is also investigating for potential corruption.
No completion timetable
Damianos had appeared at the House energy committee three weeks ago to brief MPs on the trajectory of the project.
On Tuesday, he was asked directly for a timetable on completion and said he was not in a position to provide one. He added that Technip, the government’s current consultants on the project, could not do so either.
“Once we are able to give a timeline, we will,” he said.
Damianos reiterated that the government’s priority is for the project to restart “from where it left off”.
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