Akel leader questions viability of Great Sea Interconnector
Stefanos Stefanou, leader of the opposition party Akel, sent a letter to Cyprus’ finance minister with questions about the financial viability of the Great Sea Interconnector (GSI) project. This came after French company Meridiam acquired a stake in the Greek holding company behind the project, Cyprus Mail reports.
Last month, Meridiam acquired a 66% stake in the holding company, while Greece’s independent electricity transmission system operator Admie retained 33%. According to Stefanou, the arrival of a new investor is an important development, but it does not by itself answer questions about the GSI’s overall cost and viability, its financing, and the costs for Cyprus and consumers.
Questions about ownership and Cyprus’ participation
The Akel leader recalled that a year ago, the finance minister told the media about two studies that found the project unviable. Stefanou asked whether the finance ministry has the full text of the agreement between Admie and Meridiam, who owns the project’s assets, and which party will be responsible for its construction and operation.
He also asked whether the government is considering the participation of the Cypriot state in GSI’s share capital under the new conditions. The government is examining the possibility of investing €100 million in the project as a capital contribution. The final investment decision is to be made after due diligence and a cost-benefit analysis.
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Project cost and consumer support
Separately, Cyprus has committed to provide a package of political and financial support: €25 million annually for five years, but no more than €125 million. This support is intended to cover consumer costs during the construction period.
Stefanou asked for clarification on whether the Admie-Meridiam agreement has affected Cyprus’ financial or other commitments. He also asked about new or updated studies of the GSI’s viability, a possible reduction in electricity prices in Cyprus, the project’s completion timeline, and sources to cover the financing gap.
The latest estimate of the cost of the subsea cable section between Greece and Cyprus circulating in the media is €1.9 billion. The entire multi-stage project, including the section between Cyprus and Israel, is estimated at €2.4 billion. The European Union has pledged to provide €657 million in funding.
