Filenews 11 February 2024 - by Chrysanthos Manoli
A new attempt at dialogue with the Chinese side, on a technical as well as political basis, is likely to be undertaken towards the end of February or beginning of March, in order to prevent the permanent collapse of the relations of the Republic of Cyprus with the state-owned company China Petroleum Pipeline Engineering and its partners in the consortium that undertook to build the gas dehydration terminal in Vasilikos.
As Phileleftheros wrote in recent days, the bad relations between the Republic and the contractor are likely to be followed by a period of seeking understanding, through which, however, both sides will have profits and losses. More recent information indicates that it is now quite possible that the Ministry of Energy and ETYFA will re-enter a channel of communication with CPP at the highest level, with the involvement of the Chinese government, which is fully aware of the positions of both sides.
Provided that the state has already consented (under Anastasiades) to a concession of €25 million. It also considers that under the contract it is entitled to compensation of €67.5 million. For a predetermined period of delays, with a base date of September 2022 – which the contractor has already exceeded – the conclusion of a new negotiation is not an easy task. All the more so since the Chinese side has made a formal request for additional compensation of EUR 200 million. This is a demand that the Republic considers completely absurd.
Understandable of the difficulties of finding a mutually acceptable solution, so that work on Vasilikos can resume and the Prometheus floating platform will be certified by a foreign firm and handed over to the state, Energy Minister George Papanastasiou makes sure to reiterate that painful solutions, namely the cancellation of the contract with CPP, are on the table and the Republic will not hesitate to resort to them. if the other side is not convinced of its readiness and capacity (technical and financial) to complete the project within the year.
As we rewrote, the July 2024 timeline practically no longer exists, due to new delays by the contractor.
For the next 2-3 weeks, no dramatic developments are expected. After the completion of the celebrations in China for their New Year, the arrival in Cyprus of a high CPP delegation for negotiations with ETYFA and the Cypriot Government should be expected, as the most positive development, with the Chinese embassy following very closely.
