Greece yet to respond to Cyprus Interconnector concerns, but assurances unofficially given
Source: in-cyprus.com
The long-awaited response letter from Greek Energy Minister, Theodoros Skylakakis, to the 10-page letter received from his Cypriot counterpart Yiorgos Papanastasiou is yet to be received, with reports indicating that Athens is taking its time, due to the seriousness of the matter, involving no less the future of the major Great Sea Interconnector project.
The Papanastasiou letter detailed key concerns expressed in the legal due diligence study by American firm Curtis, Mallet-Prevost, Colt and Mosle LLP, A counsel to the Republic of Cyprus. The study highlighted potential financial damage by investing in the project, resulting from the wording of the concession agreement from the Greek Independent Power Transmission Operator.
In a meeting between Papanastasiou and Deputy Minister to the President Irene Piki with Skylakakis and operator executives on December 27th, it was agreed that the Greek side would respond to that letter in detail, so that the Republic’s external consultant could be informed of any modifications and the Cabinet could reach final decisions.
In spite the lack of an official response, sources told Philenews that both the Greek energy ministry and the operator have assured Nicosia through various channels that its main Concession Agreement concerns will be substantially addressed.
Over the past week, reports in the Greek media indicate that Athens considers the Cypriot government’s concerns justified and intends to address them in a way that will secure Cyprus’s consent to participate in GSI with 100 million and approximately 30% of the share capital.
The Cairo Contacts
Additional Phileleftheros sources note that during the Cairo trilateral meeting between Egypt, Cyprus, and Greece earlier this week, the Greek and Cypriot delegations discussed the issued and Athens assured that the Agreement would be substantially modified.
Specifically, the new text will clearly state the Greek operator’s commitment to transfer ownership of the electrical interconnection to GSI, once the shareholding structure of the new implementation body is completed and especially once the Commission certifies GSI as the interconnection operator.
If these assurances are implemented in the near future, the Republic of Cyprus will consider its investment participation.
Curtis, Mallet-Prevost, Colt and Mosle have also warned Cyprus about the project’s viability, technical challenges at seabed depths and the possibility of Turkey’s reaction to seabed surveys in international waters over the next few days and to cable laying at a later stage.
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