New tender to evaluate cost-benefit study for the Great Sea Interconnector

The Ministry of Energy has proceeded with once again announcing the tender aimed at finding a company that will evaluate the cost-benefit study submitted by Greece’s Independent Power Transmission Operator (IPTO) for the Cyprus-Greece (Crete) electrical interconnection, rejecting the offer submitted by DNV AS, Dubai Branch.

According to InBusinessNews sources, the Energy Ministry proceeded with this action, due to the fact that the only company that submitted an offer during the first announcement did not respond to some clarifying questions that the Ministry asked within the time period that had been determined.

However, according to the announcement on the Treasury’s eProcurement website, in this case, the tender will once again be carried through urgent procedures and those interested parties who wish to submit offers, should do so within 15 days.

In more detail, the tender was opened on 16 August and those interested should submit offers until 12 noon on 2 September, while half an hour later - at 12.30 pm – the tenders will be unsealed and it will become clear how many companies have submitted an offer, and for how much.

Why the assessed value has increased

Also based on the announcement, the only difference compared to the previous call concerns the amount of the bids to be offered, which increased from €45,000 to €80,000.

As InBusinessNews is informed, the increase in the estimated value of the bid was deemed necessary in order to give an additional incentive to more entities to submit bids and participate in the tender.

Also, according to InBusinessNews sources, even though there has been this small delay, the Government's plan is not changing, since within three days after the bid is awarded it is expected that the company that will be chosen will submit its opinion, in order for the Government to also make its final decisions on its equity participation, or not, in the special purpose company recommended by IPTO for the implementation of the electrical interconnection.

It is worth mentioning that, in the new tender as well, the subject of the tender is the provision of consultancy services to the Ministry of Energy, Commerce and Industry, for the examination of the cost-benefit analysis study for the Crete-Cyprus interconnection submitted by the implementing body of the large maritime interconnection (GSI), IPTO.

The contractor, according to the terms of the tender, will have to assess the effects of the interconnection on the energy sector of Cyprus, with particular emphasis on the effects on electricity prices.

The final deliverable should include a concise summary describing the key findings of the evaluation in a transparent, understandable and simple format.

The main objective of the competition is to review the cost-benefit study and provide appropriate proposals to the Ministry of Energy, Trade and Industry, which will contribute to the decision to participate in the project.

The DNV AS offer

It is recalled that, during the previous tender, which was published on 19 July and closed on 2 August, a bid was submitted by DNV AS, Dubai Branch.

DNV AS had submitted a bid of €44,750, while the estimated value of the tender was set at €45,500.

According to the company's website, DNV AS is a leading provider of digital solutions to manage risk and improve safety and asset performance for ships, pipelines, processing plants, offshore construction, power grids, smart cities and more.

CERA will decide soon

It is also worth mentioning that until the new tender announced by the Ministry of Energy is completed, it is expected that the Cyprus Energy Regulatory Authority (CERA) will make its final decisions in relation to the objection filed by IPTO, requesting a re-evaluation of the Authority’s most recent decision.

As InBusinessNews wrote in a 21 August article, CERA's three-member senior management is expected to meet and make its final decisions, on which the future of the monumental project may even depend, within the coming week and no later than Friday, 30 August.

However, before CERA's decisions are taken, two important contacts-meetings will take place. One will be with the administration of IPTO, which will come to Cyprus for the third time in recent periods, and the second with the European Commission, which will finance the electrical interconnection with €657 million.

Developments before the Parliament again

Meanwhile, the latest developments in relation to the Cyprus-Greece electrical interconnection will be put, once again, under Parliament's microscope in an extraordinary session of the House Energy Committee.

The Committee meeting has been set for Wednesday, 28 August at 10am and the discussion will focus on the following:

• Guarantees of an implementing body in the case of geopolitical risk,
• Reduction to the amount of sponsorship and participation of the Republic of Cyprus in the share capital of the project,
• Recovery of electrical interconnection revenue during construction.

The Minister of Energy, Giorgos Papanastasiou, the Deputy Minister to the President, Irine Piki, the Auditor General, Odysseas Michaelides, the permanent secretaries of the Finance and Energy Ministries, the members CERA’s senior management and representatives of the Law Office of the Republic are anticipated to attend.

Also anticipated to attend are the leadership of EAC, Cyprus’ Natural Gas Public Company (DEFA) and the Natural Gas Infrastructure Company (ETYFA), a subsidiary of DEFA, since the Committee will also discuss the latest developments regarding the liquefied natural gas terminal in Vassiliko.

(Source: InBusinessNews)