Keravnos Reveals Stunning Revelation About Great Sea Interconnector - Government Remains Elusive on Matter
The Cyprus-Greece electricity interconnection project, a key part of the Great Sea Interconnector (GSI), is under scrutiny due to the concerns and objections raised by Cyprus Finance Minister Makis Keravnos. His focus is on the project's financial sustainability and current implementation status.
Two independent studies by credible organisations have concluded that the interconnector project is not sustainable, leading Keravnos to question the logic and criteria behind financial commitments, particularly the Cyprus Energy Regulatory Authority (CERA)'s approval of a €25 million annual payment to Greece’s independent transmission system operator ADMIE.
Keravnos highlights that the project is essentially frozen and not being implemented at the moment. He believes making payments to ADMIE under these conditions is problematic and raises concerns about prudent use of public funds. Despite this, the Finance Ministry included the €25 million payment in its 2025 budget following CERA’s approved cost recovery rules.
The Finance Minister questions the rationale for such a budgetary commitment given the doubts about whether the interconnection will proceed. He emphasises that allocating budget funds based on uncertain implementation risks could potentially waste public money.
These financial objections are set against broader regulatory and geopolitical delays affecting the project, including dispute among contractors and regulators, stalled seabed surveys, and regional instability, which have led to funding stalemates and construction risks.
In summary, Keravnos objects mainly because:
- Two studies show the interconnector is financially unsustainable.
- The project is currently not advancing and frozen.
- The approval of a €25 million payment to Greece's ADMIE by CERA lacks clear justification, given the project's stalled status.
- Allocating budget funds based on uncertain implementation risks could potentially waste public money.
These concerns contrast with optimistic views from other stakeholders who emphasise the project's strategic and long-term benefits, but cannot negate Keravnos’s focus on the immediate financial risks and regulatory doubts delaying the project.
[1] Source: Cyprus News Agency [2] Source: Financial Mirror [3] Source: Cyprus Mail [4] Source: In-Cyprus [5] Source: Phileleftheros [6] Source: Cyprus Times
- The Cyprus Finance Minister, Makis Keravnos, questions the rationale for a €25 million annual payment to Greece’s ADMIE, as two independent studies suggest the interconnector project's financial sustainability is questionable.
- Keravnos expresses concern about the prudent use of public funds, given the interconnector project's current frozen state, and the potential waste of public money from budgetary commitments based on uncertain implementation risks.
- Further financial objections from Keravnos involve the lack of clear justification for CERA's approval of the €25 million payment to ADMIE, considering the project's delays and regulatory disputes affecting its implementation.
