Cyprus urged to pay share of Interconnector project

Cyprus has been urged to cough up its €100 million financial share in the Great Sea Interconnector project in a meeting between Finance Minister Makis Keravnos and Greece’s Independent Power Transmission Operator (Admie).

In a statement on Wednesday, Admie said its senior management held a meeting with Cyprus’ finance minister to brief him on the progress of the project’s development.

The Great Sea Interconnector aims to link the electricity grids of Cyprus, Greece and Israel, with Admie specifying its senior management held meetings with Cypriot and Israeli government officials. The aim is to “speed up the procedures for implementing the electrical interconnection” between the three countries.

During the meeting with Keravnos, Admie briefed the minister on the progress of the project’s development.

The transmission operator’s management asked Keravnos to speed up the procedures on implementing the cabinet’s decision for Cyprus’ involvement in the project to the tune of up to €100m.

“Admie has already spent over €150m for the project, and explained to the finance minister that it looks forward to Cyprus’ participation for the continuation of the project.”

Both parties agreed to take steps so as to secure funding from the European Investment Bank (EIB). Last week, the bank’s vice president said the EIB’s stance over the project remains negative.

According to Admie, Israel’s energy minister and the energy regulatory authority have given the Great Sea Interconnector its full backing.

A meeting is expected to take place in person in April over the matter, the operator specified.

Cyprus’ electricity interconnection with Israel will require a cost-benefit study (CBA), which the regulators of both countries will rely on to allocate the costs recovered from the revenues (Cross Border Cost Allocation).

The two sides agreed to set up technical teams to prepare the study with the aim of having it ready in the near future.