Kyriacos Kakouris: Anything is possible when it comes to the EIB’s potential financing of the GSI

The Vice-President of the European Investment Bank (EIB) Kyriacos Kakouris has left open the possibility of the EIB financing the Great Sea Interconnector (GSI) Cyprus-Greece electrical interconnection project, stressing that whether or not the project is eligible for lending will be evaluated mainly from a technical point of view.

In statements on the sidelines of the loan agreement signing ceremony with the Minister of Finance, the Mayor of Paphos and the Cyprus University of Technology, Kakouris, at the same time, said the examination of the cost-benefit study of the project, submitted by the project’s implementing body, Greece’s Independent Power Transmission Operator (IPTO,) will be completed soon.

The Republic of Cyprus' final decision on whether to enter the share capital of the body created for the purpose with a €100 million investment will also depend on the results of the study.

Answering questions, Kakouris confirmed that both IPTO and the Minister of Finance had submitted the cost-benefit analysis around the end of July and confirmation of the scenarios regarding the Republic of Cyprus’ energy plans had been sought.

He noted that the answers had been received from the Government but some additional information was requested mainly about the financial planning that exists for the specific project and said that the relevant EIB services are now examining these.

"Currently they have not completed their examination of the information, but it is expected that this will be completed soon. Those following the developments in both Cyprus and Greece have assured me that it is expected that this will be done soon," he said.

Answering a related question, Kakouris said that the EIB’s answer would be given much earlier than by the end of the year.

Asked if the EIB has changed its initially cautious attitude to financing the project, Kakouris said that since the contractor had submitted the cost-benefit study it means they are looking for financing.

He noted that it was "essentially the same study with new scenarios submitted by the contractor"

"There is no question if we have changed something, I cannot prejudge the decision of the Bank's services, which are examining based on specific criteria, as always, as in every project, a technical evaluation is carried out mainly of the proposal," he continued.

Answering whether, together with the updated study, the amount of funding requested by the contractor has changed, Kakouris stated that he does not remember whether a specific amount has been requested, to explain that the issue "was more to evaluate the project, mainly from a technical point of view, as to whether it is eligible for financing from our Bank".

We are monitoring the LNG terminal issue

Asked if the EIB intends to request the return of the funding for the liquefied natural gas (LNG) terminal project in Vasiliko, as the project has collapsed and is under investigation by the European Public Prosecutor's Office, Kakouris said that the EIB has financed the project of the advent of natural gas, adding that the Bank's services are monitoring the developments as they occur.

"It is sad because such a project, of such importance for the economy of Cyprus and our energy efficiency has reached this point. We are monitoring it. I would say if not on a daily basis, on a weekly basis, bank officials are in contact with officials at the Ministry of Finance as well as with the contractor of the project which is the Natural Gas Infrastructure Company (ETYFA)," he said and concluded, "No decision has been made on our part, the EIB is committed to the projects it finances and as long as the purpose remains, (it is) there to support them."

(Source: InBusinessNews)