Cabinet awaiting updated studies before deciding on Republic’s investment in Great Sea Interconnector

The Cabinet has informed the Ministers of Finance and Energy that a final decision on the Republic’s investment in the Great Sea Interconnector will be made once certain actions have been completed, Energy Minister George Papanastasiou has revealed.

In his statements following the 7 February Cabinet meeting, the Minister stated that "today the Republic of Cyprus' intention to participate in the share capital of Great Sea Interconnector formerly Euroasia Interconnector for the amount of up to 100 million euros has been confirmed".

However, he went on to explain that some project sustainability reports will need to be updated, among other actions, before a final decision is made. "The studies will be done jointly with other interested parties, such as IPTO (the Independent Power Transmission Operator of Greece), which is also an implementing body." He added that there are also investment funds involved, such as the investment fund of the United Arab Emirates, TAQA, as well as the Republic of Cyprus.

Papanastasiou stated that a due diligence study will also be carried out on the legal and financial aspects of the issue. After these studies are completed and given the green light, he added, then the Minister of Finance and the Minister of Energy will take the proposal for a final investment decision to the Cabinet.

"We should note that the project is a grand venture which will cost 1.9 billion euros, it concerns the electrical interconnection of Cyprus with Crete and of course, with Europe since Crete will soon be connected to Central Greece and the connection of Cyprus with Israel," he said.

He clarified that "the first connection with Crete concerns an 879 km electric cable and the connection with Israel will use a cable which is about 350 km long will be in seawater depths of 3 km. And the Israel-Cyprus-Greece project will be financed by the European Commission with an amount of €657 million as a project of mutual interest".

Also read: Cabinet to continue discussion on Cyprus’ participation in Great Sea Interconnector company

(Source: InBusinessNews)