Filenews 11 March 2025 - by Chrysanthos Manoli
The unofficial information regarding IPTO's positions regarding the comments of the American consulting firm on the Concession Agreement for the electricity interconnection to Great Sea Interconnector indicate that at least one of the requests of the Cypriot side, in relation to the legal system that will govern the company, when it takes over as project promoter, will be satisfied.
In particular, we are informed that ADMIE is reportedly willing to accept the request of the Cypriot Government for Great Sea Interconnector to continue its operation as an implementing body and owner of the project based in Cyprus.
The transfer of GSI's headquarters to Cyprus – so that the Cypriot courts have jurisdiction to resolve disputes – was also recommended by the American firm Curtis, Mallet-Prevost, Colt & Mosle LLP, which was included in the legal due diligence study prepared for the Cypriot Government. According to the study, GSI was established and is currently based in Greece, but Cyprus appears to be the most effective choice of jurisdiction for interested investors, i.e. with regard to the power of Cypriot courts to resolve disputes under Cypriot law.
Curtis, Mallet-Prevost, Colt & Mosle LLP said: "This issue needs to be resolved in a timely manner as it may affect GSI's ability to secure financing and investors. It is added that the decision on GSI's headquarters should not be left to be taken at a later date on the basis of the parties' good faith.
Proprietary data
Regarding the other major issue raised by US advisers and the Cypriot government, regarding the transfer of ownership of the electricity interconnection to GSI, as a condition for the purchase of share capital from Cyprus, the Energy Minister confirmed yesterday, speaking to Triton's Breakfast Schedule, that in his lengthy written statement of IPTO states that all assets related to the interconnection will be transferred to GSI, but this will be done when the new shareholding structure of the company is formed (when investors – shareholders are found) and approved by the European Commission as an accredited operator of the interconnection.
In previous statements made on the issue by the Cypriot side, it was stated that regardless of the point in time when the Commission approves GSI as operator of the interconnection and as owner of the project, the Concession Agreement submitted to CERA by ADMIE should be amended before Cyprus' shareholding, in order to legally safeguard the interests of shareholders and the transfer of ownership assets to GSI.
IPTO's written response to the comments of Curtis, Mallet-Prevost, Colt & Mosle LLP will be sent to the consultants for its assessment and the review, if appropriate, of the legal due diligence study.
