What the Government's decision to invest in the EuroAsia Interconnector depends on

The government will make its decisions at the right time and, if the project is not economically viable, it would be a mistake to invest in it, explained Minister of Finance, Makis Keravnos, when asked about the state’s intentions regarding the EuroAsia Interconnector.

Speaking on an afternoon news programme on Sigma television on 28 August, Keravnos stated that the government has asked a specialised company to carry out a viability study evaluating the financial and technical aspects of the project. "The Government will make its decisions at the right time. If it is not financially viable, it will be a mistake to invest," the Finance Minister underlined.

It is noted that the course of implementation of the Cyprus-Greece-Israel electrical interconnection through a submarine cable will be under the microscope of the 29 August session of the Parliament's Energy Committee.

The Minister of Energy, representatives of the Ministry of Finance, the Cyprus Energy Regulatory Authority, the Cyprus Transmission System Operator and the Distribution System Operator, the Head of the Delegation of the European Commission in Cyprus and representatives of EuroAsia Interconnector Limited have been invited to the session.

It is recalled that the EuroAsia Interconnector aims to end the energy isolation of Cyprus with a 1,280 km submarine cable.

This is a work that has been classified as a project of common interest (PCI) and with the implementing body having already secured funding of €657 million from the EU, through the Connecting Europe Facility, as well as €100 million from the Recovery and Resilience Fund.

However, with the total cost of the entire project having risen to €1.9 billion, recent information that has seen the light of day has the European Investment Bank (EIB) saying no to funding the project, raising questions about the financial viability of the iconic effort.

The Minister of Energy himself, George Papanastasiou, has stated that the Government is considering three scenarios regarding the issue: That is, whether it will grant state guarantees to the project, or whether it will participate in the capital (equity investment) or whether it will do nothing.

(Source: InBusinessNews)