Filenews 6 September 2025 - by Chrysanthos Manolis
Fileleftheros publishes today the full text of the Framework of Understanding signed on September 20, 2024 by the Ministers of Energy of Cyprus and Greece, for the electrical interconnection of the two electricity networks, following authorization by the governments and following a relevant decision of the Council of Ministers in Cyprus.
The publication of the agreement is done in order to crystallize a clear and valid opinion of the reader as to what the two states have committed to do and what they must do as soon as possible, regarding the financing of the implementing body (IPTO) but also for the promotion of electricity interconnection, the attraction of investors and money.
From the text of that Framework - as well as the decision of the Council of Ministers of Cyprus - it follows that the Republic of Cyprus undertook to pay a total of €125 million to IPTO, in five annual instalments of €25 million, from 2025 to 2029, without any written condition being set for the disbursement of the amount related to the project implementation stage. Nor was the completion of the depth surveys in the territorial waters of the two countries or in the international waters between Cyprus and Crete set as a prerequisite. However, there was as a basic condition the €25 million to be approved by CERA as real and justified expenses already incurred by IPTO.
From the Framework of Understanding on the Mutual Commitment of the Republic of Cyprus and the Greek Government, it is clear that Cyprus has committed to pay €25 million per year to IPTO, until 2029, provided that this amount is justified by the Cyprus Energy Regulatory Authority (CERA), but, on the other hand, there is no specific date on which the annual instalment must be paid to the implementing body. It is concluded that Cyprus must pay the €25 million for the period 1/1/25 – 31/12/25, but theoretically it can do so at any time.
We remind you that on 31/7/2025, CERA, with its decision, approved an amount of €82 million. At the same time, it approved the payment to IPTO of €25 million for the period January – December 2025.
After CERA's decision, the Minister of Finance, Makis Keravnos, announced his position that the €25 million will be disbursed when IPTO implements all the commitments it has undertaken for the electricity interconnection, referring to timetables and depth measurements, which, however, as we mentioned above, are not explicitly recorded in the Framework of Understanding.
Last Wednesday, the President of the Republic supported his minister, stating that the promotion of the strategically important project is linked to the undertaking of commitments by IPTO.
The agreement
