in-cyprus 19 November 2024 - by Chrysanthos Manoli
The €1.9 billion Greece-Cyprus electricity interconnector project faces new complications as Greek grid operator IPTO has yet to issue a full notice to proceed to cable manufacturer Nexans, despite earlier urgency over September deadlines.
According to sources familiar with the matter, IPTO appears reluctant to fully commit to the €1.4 billion cable contract until Cyprus makes a final investment decision about joining Great Sea Interconnector, IPTO’s subsidiary designated as the project’s implementation vehicle.
Industry website newmoney.gr reports that IPTO, partly owned by China’s State Grid, is seeking additional concessions from regulators.
These include the full recovery of €48.8 million paid to previous operator EuroAsia Interconnector – of which only €12 million has been approved – and an increase in the allowed return on capital to 8.3 per cent.
Whilst Nexans reports normal progress on cable manufacturing, questions arise about how work continues without the formal notice to proceed that was deemed crucial in September. Sources suggest IPTO has begun monthly payments to Nexans for ongoing work.
Cyprus’s investment decision, initially expected by late November, may now be delayed until December or early January.
The decision could be influenced by whether the European Investment Bank approves a €500 million loan for the project.
