French firm Meridiam eyes Cyprus-Crete power link

Source: in-cyprus.com

French investment firm Meridiam has reportedly acquired a 49.9% stake in Great Sea Interconnector (GSI), according to unconfirmed Bloomberg reports, as regulatory and governmental concerns mount over the proposed Cyprus-Crete electricity interconnection project.

The deal comes amid significant reservations from Cypriot authorities about the current concession agreement. The Cyprus Energy Regulatory Authority (CERA) remains hesitant to approve the agreement, while the Cypriot government has formally notified CERA that the proposal does not align with national interests, despite its €100 million commitment to the project.

New negotiations between Cyprus and Greece are set to begin after Christmas to address serious concerns raised by Cyprus’s legal counsel, Curtis, Mallet-Prevost, Colt and Mosle LLP. The American law firm has advised against Cypriot investment in GSI under the proposed terms.

Meridiam’s approach to such projects was previously highlighted when it withdrew from bidding for a 20% stake in IPTO’s Ariadne interconnection project last July, citing concerns over passive investor status – echoing some of Cyprus’s current concerns about the GSI project.

The development raises questions about the terms of Meridiam’s investment and whether it aligns with the contested concession agreement currently under review by regulators.

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