Filenews 12 September 2024
Information from Greece, from energy officials with knowledge of the electricity interconnection negotiations, indicate that during Tuesday's meeting at the Presidential Palace, prospects of an agreement were created, with a change of part of the proportional cost allocation to consumers of the two countries (CBCA regulatory decision).
Kathimerini's website in Greece wrote today that in the context of this agreement that took place on Tuesday, the assumption of responsibility by ADMIE and the Greek Government is being promoted, so that the cost to be shared by the consumers of Cyprus – Greece in case of interruption or non-operation of the project will go to 50-50.
With today's regulatory decision, the cost is divided into 63%(Cyprus) – 37% (Greece), for all phases of the project, i.e. for the recovery of IPTO expenses for constructions but also for geopolitical risk or other unforeseen factor for which the implementing body will not be responsible.
With the formula currently being discussed between the two sides, the apportionment will go to 50-50 (if there is a final agreement) but only in case of interruption of the project by an unforeseen external factor. To recover construction costs, 63-37% will continue to apply.
As "F" wrote, the Cypriot Government has officially informed ADMIE that if the force majeure aspect is closed, it is ready to ratify the previous agreement for financing the projects from 2025 with €25 million from the state treasury (perhaps from pollutant revenues), with a total amount of €125 million by the end of 2029.
If the project is not completed by December 2029, it is unclear at this stage whether Cyprus will be asked to continue paying €25 million. the time until the completion of construction. The position of the Cypriot Government, which has been expressed unequivocally to the Greek side, is that the preliminary payment of €25 million will be made to the Greek side next year, will end in 2029 and the recovery of expenses by IPTO will begin (or resume) with the operation of the project, either in 2030 or later.
Several other issues raised as concerns by the Cypriot side are not known whether they were raised at the meeting under President Christodoulides or whether they are being discussed in the ongoing consultations.
