The European Investment Bank (EIB) on Thursday confirmed €35 million in new financing for the expansion of strategic oil reserves in Cyprus.
Management of strategic oil reserves in Cyprus is to be transformed through construction of a new emergency energy facility enabling Cyprus to hold one month’s worth of emergency oil supplies.
The new EIB financing represents the first infrastructure scheme in Cyprus to be supported by the Investment Plan for Europe initiative.
The new EIB support for crucial energy infrastructure in Cyprus was formally signed in Nicosia by Jonathan Taylor, European Investment Bank Vice President responsible for lending operations in Cyprus, and Panagiotis Malekkos, Chairman of KODAP, the Cyprus Organisation for Storage and Management of Oil Stocks.
Also present at the signing was energy minister Giorgos Lakkotrypis.
“The European Investment Bank has been a key partner for energy investment in Cyprus for more than 40 years. New EIB support for emergency oil storage at Vasilikos confirmed today will ensure critical energy infrastructure in a modern and safe facility,” Lakkotrypis said.
“The €35m long-term EIB financing represents our largest support for energy investment in Cyprus for more than five years and is the first infrastructure project in Cyprus backed by the Investment Plan for Europe.” Taylor said.
The 20-year long-term EIB loan will finance a new six tank 200,000 cubic metres oil storage facility at Vasilikos on the southern coast of the island, as well as firefighting, fencing, pipelines, security and roads at the new site.
The Vasilikos terminal will hold the bulk of oil reserves owned by KODAP.
Once operational in 2020, the new Vasilikos facility will allow storage of one month’s worth of oil supplies for Cyprus and contribute towards compliance with a European obligation to store oil reserves equivalent to 90 days of energy needs.
The project is the first infrastructure scheme in Cyprus supported by the €500bn Investment Plan for Europe initiative. The new Vasilikos facility will be financed by the European Investment Bank under the Investment Plan for Europe, using a guarantee from the European Fund for Strategic Investments.
According to a press release, the EIB has supported energy, education, transport, health, water and small business investment in Cyprus since 1981. This has included providing more than €818m for energy investment in wind energy, power distribution and transmission, energy efficiency and security of energy supply projects.