Nicosia, Cyprus. Greece and Cyprus have asked the European Investment Bank to conduct a new due diligence study on the Great Sea Interconnector, not to provide extra funding for the project. The clarification was reported by Cyprus Mail on Monday.
Request to the European Investment Bank
A joint letter sent by the governments of Greece and Cyprus to the European Investment Bank requested a new due diligence study for the Great Sea Interconnector project. Sources close to the matter said the two governments did not ask the Luxembourg-based bank to disburse more funds for the project itself, but instead to carry out its own study into the project and its future.
The sources added that if the study deems it appropriate, funding for the project’s completion may be provided by the bank in due course.
Project scope and cost concerns
If completed, the Great Sea Interconnector will connect the energy grids of Cyprus, Greece and Israel. Cypriot Energy Minister Michael Damianos said earlier this month that, “from a security of supply perspective,” completing the project is “a must.”
He added that Cyprus could, according to current estimates, be responsible for 63 per cent of the project’s overall cost. The current cost is estimated at €1.9 billion, and he said that if costs rise, Cyprus would still pay 63 per cent, which he said would be reflected in consumers’ bills.
Progress and timeline
The project has been progressing slowly. Nexans, the French cable construction company, confirmed last month that an undersea trial of the type of cable to be used was completed successfully.
Nexans had earlier this year formally acknowledged that the delivery schedule for the cables is being renegotiated, pushing the planned completion date into the next decade.
European Commission support and bilateral coordination
European Energy Commissioner Dan Jorgensen said the European Commission will provide “strong political and technical support” for the interconnector, including “dedicated events and high-level discussions, as well as additional engagement on geopolitical issues.”
Attention has largely focused on linking Cyprus and Greece. The two governments had appeared to be at odds over the matter toward the end of last year, though Damianos said they now have “a common line on this specific issue.”
What impact could the project’s estimated cost-sharing arrangement have on your electricity bills?
