Akel seeks answers on Meridiam’s role in Great Sea Interconnector

Nicosia, Cyprus. Akel leader Stefanos Stefanou has asked the finance minister whether the entry of French asset management firm Meridiam into the Great Sea Interconnector (GSI) affects Cyprus’ plans for the project and its financial viability.

Questions over ownership and viability

In a letter published on Thursday, Stefanou said Meridiam’s participation was an important development but did not, by itself, address questions regarding the project’s total cost, financing, viability or potential costs for Cyprus and consumers.

Last month, Meridiam acquired a 66 per cent stake in the Greek holding company behind the GSI. Greece’s independent power transmission operator, Admie, retained a 33 per cent stake.

Stefanou noted that the finance minister had said only a year ago that two studies had found the project was not viable.

He asked whether the finance ministry has full knowledge of the agreement between Admie and Meridiam, including which party owns the project’s assets and who will lead its construction and operation.

Cyprus investment under consideration

Stefanou also asked whether the new ownership structure means the government is examining Cyprus’ participation in the GSI shareholding structure.

The government is considering whether the Cypriot state will make a €100 million equity investment in the interconnector project. A final investment decision is to be made following a comprehensive due diligence review and cost-benefit analysis.

Cyprus has separately committed to a political and financial support package of €25 million annually for five years, capped at €125 million, to cover consumer costs during the construction phase.

Stefanou asked whether the agreement between Admie and Meridiam changes any financial or other commitments undertaken by Cyprus.