Damianos ties Cyprus funding for Great Sea Interconnector to construction progress

Nicosia, Cyprus. Energy Minister Michael Damianos said on Monday that government funding for construction of the Great Sea Interconnector depends on progress with the project, declaring that “if electricity does not come to Cyprus, we will not pay”.

Reported spending rises, verified amount unchanged

Speaking after he presented his ministry’s budget for next year before the House finance committee, Damianos confirmed that Admie, Greece’s independent power transmission system operator, now reports project expenditure of €302 million.

That compares with €250m confirmed by his predecessor, George Papanastasiou, in August last year.

Damianos said the Cyprus energy regulatory authority (Cera) had verified only €82m of the reported expenditure. That amount remains unchanged from the figure announced almost 15 months earlier.

The unchanged total effectively means that Cera has declined to verify any further spending on the interconnector since August last year, although Admie reports having spent an additional €52m during that period.

Consumer payments depend on electricity delivery

Damianos said consumers in Cyprus would not start paying towards the project until construction was complete and electricity was reaching the island from Greece through the cable. He added that repayment of the portion allocated to Cypriot consumers was planned over 30 years.

Addressing a possible rise in construction costs, the minister said further resources should be sought, potentially from investors or funds, or through European Investment Bank financing.