Filenews 31 July 2024 - by Eleftheria Paizanou
China's CPP on Monday brought before the Court of Arbitration in London extensive information on the stormy developments regarding the Vasilikos gas terminal, informing judges about the European Public Prosecutor's Office investigation into corruption, the European Commission's demand for the return of European sponsorship and statements by a number of politicians and even government officials. for scandalous procedures.
CPP's information to the Court was made in the context of ETYFA's request for a total amount of approximately €70 million to be disbursed by banks from guarantees deposited by the Chinese company as collateral for the performance of the contract.
Although it unilaterally terminated the contract, which it did not implement on time anyway, Phileleftheros learns that CPP persuaded the Court to block the liquidation of the guarantees until a hearing was held on this aspect.
Paper and squid in court
In particular, CPP indicated on Monday that it will try to exploit for its own interests the uproar caused by the investigation conducted by the European Public Prosecutor's Office into the 2019 award procedures for the construction of a gas import terminal in Vasilikos, as well as the allegations and revelations that come to light about possible fraud. misuse of EU funds and corruption.
The company, which claims through the Arbitration Court in London from the Republic of Cyprus an additional €200 million. Regarding the terminal, Phileleftheros informed the Court of Arbitration used statements by state officials, MPs, political persons and other stakeholders, claiming that the procedures applied in the country for this investment were not appropriate.
Yesterday, Energy Minister George Papanastasiou called for part of the meeting of the House Standing Committee on Trade to be held behind closed doors, so as not to leak sensitive information. Papanastasiou justified his position by saying that on Monday there was a very negative development for the Republic of Cyprus in the arbitration that is underway in London with the Chinese company CPP. He did not give more information in the open session. He said only that yesterday's development is against the interests of the Republic of Cyprus ("puts the country in danger", he said). He explained that developments as presented by CPP and others "put us at risk of losing things in arbitration."
According to the energy minister, the other side is monitoring what is happening in Cyprus and using them in court, which is why information cannot be given to the media. "I don't want to tell you where the consultation is. It is a legal process and the legal advisers of the other side try to use every word that is said. The RoC is trying to protect ETYFA," he concluded.
New conference call pending
During the closed session of the Trade Committee, EAC Chairman and ETYFA Vice-President George Petrou informed that the Chinese company requests a new teleconference immediately to consult on the Prometheus floating gas plant, which is located at a Cosco shipyard in Shanghai. The teleconference will be attended by representatives of the ministry, ETYFA and the two Chinese companies directly related to the FSRU.
It is worth noting that the teleconference does not seem to be irrelevant to the scenario that the Government is considering to come out with offers for renting a floating gas regasification unit, in case the "Prometheus" does not sail to Cyprus on time. This was reiterated yesterday by the minister himself, during the open part of the committee meeting.
As he said, the ship Prometheus is not certified as a floating natural gas liquefaction unit. He also said that the classification society chose, if the Republic of Cyprus wishes to take over the ship, to give the certification of a natural gas carrier, with conditions, that is, as he explained, that the ship sail to Vasilikos without natural gas and its certification as an FSRU to take place in Vasilikos. "The owner of the ship is ETYFA, which is called upon to consult with those holding the ship in Shanghai," he added. He added that it was not clear which of the CPP or Cosco was not letting the ship sail.
They will come out on offers
Mr. Papanastasiou also said that a few days ago ETYFA has taken possession of the construction site, namely the unfinished works of the land area and the pier in Vasilikos. "ETYFA's first attempt is to activate the clauses that allow them to proceed with the completion of the terminal with subcontractors of the contract. For transparency purposes, for the completion of the pier project and the land infrastructure, we will issue tenders. It will not be by awarding the works, but by tenders," he stressed.
At the same time, the minister referred to the difficult consultations taking place with the Chinese company, describing them as "strange".
"In the consultations with the Chinese company there is nothing that is agreed and is moving forward. It's a strange consultation, there's an agreement, the company decides differently, we shake hands and it changes its decision." At the same time, he noted that the state will also issue tenders for the completion of works on the pier and onshore infrastructure of the Vasilikos gas terminal.
