Filenews 18 August 2024 - by Chrysanthos Manoli
On the subject of ETYFA's negotiations with the Chinese company CPP, there is no satisfactory information from an official side, but the scattered information from various sides leads to the conclusion that things are more serious and more difficult than initially thought.
The initial information that existed, which raised CPP's demands from ETYFA for the release of the Prometheus floating gas plant to €30 to €35 million. That does not seem to be the case today.
The Chinese demand much more. To the extent that the Cypriot side considers at this stage that it has no room for compromise.
Reports from sources familiar with the discussions point out that CPP is demanding, among other things, that the arbitration proceedings before the International Court of Arbitration in London be discontinued, as it appears from the proceedings to date that the company has not been able to substantiate its claims.
A suspension of arbitration would mean, on the one hand, a risk that ETYFA would be required to pay around €200 million, as demanded by the Chinese company, but on the other hand would deprive ETYFA of the right to claim large sums (around €65 million reportedly) for the delay on the part of the contractor in delivering the project but also equally large sums for the termination of the contract by the Cypriot side and the hostage taking of the ship Prometheus.
The Chinese side is also demanding the non-liquidation by ETYFA of the credit performance guarantees for the project, totalling €70 million.
