Cabinet approves Greece-Cyprus Interconnector amid financial concerns
Source: in-cyprus.com
The Cabinet has unanimously approved plans for an electrical interconnection between Cyprus and Greece, Finance Minister Makis Keravnos said, despite earlier reports of his reservations about the project.
Speaking to Sigma TV, Keravnos said the project, initially planned in 2010, will proceed with state subsidies to offset costs to consumers. He noted that the Cyprus Energy Regulatory Authority (CERA) had opposed transferring construction costs to consumers.
The minister explained that funding would come from emissions income, currently used for green transition projects, as permitted by EU directives. He added that additional studies are underway, including a cost-benefit analysis by Greece’s IPTO, which the Ministry of Energy has tasked the European Investment Bank to evaluate.
Regarding the stalled LNG terminal project at Vasilikos, Keravnos reported intensive preparations for work restart. He addressed concerns about a €600 million funding gap, noting that €250 million involves loans from European banks, which are under negotiation following project delays.
Keravnos also expressed disagreement with the EU’s proposed green tax on fuels, stating he had raised concerns at recent Eurogroup and Ecofin meetings about its failure to consider member states’ individual circumstances.
On the termination of cost-of-living support measures, the minister cited improved economic indicators, including reduced inflation and strong growth.
However, he acknowledged ongoing difficulties for average households, pointing to the government’s €1 billion budget for social benefits and new initiatives in education and childcare.
The original article: belongs to in-cyprus.com .
