EuroAsia Interconnector: full cooperation with Audit Office

Following statements by the press representative of the Audit Service, published in the daily media, the EuroAsia Interconnector, as Project Promoter of the EuroAsia Interconnector electricity interconnection, sent a relevant letter to the Audit Office in which it explains and clarifies the issues that have been raised.

At the same time, adhering to the principles of transparency, the company declared its readiness to provide any necessary information or data that will be requested, in the context of exercising the statutory powers of the Audit Office, and in the event that the Republic of Cyprus decides to participate as a shareholder in the Project Promoter or grant a state guarantee.

The EuroAsia Interconnector project is being implemented since 2013, in accordance with European Regulation (EU) 347/2013 (869/2022) and the Directives of the European Agency for Regulatory Authorities (ACER). Its evaluation is carried out by applying the methodology of the European Association of National Electricity Transmission Operators ENTSO-E and the European Commission, based on the criteria defined in this Regulation.

The implementation of this multidimensional large project is done in a structured manner and within the procedures provided for by the European Regulation, with full transparency, consultations with all institutional and state bodies and the participation of the public. The progress of its implementation is supervised by the competent National and European Authorities, such as the National Licensing Authorities of Cyprus (Ministry of Energy) and Greece, the Regulatory Authorities, the European Association of Regulatory Authorities ACER, the regional groups consisting of representatives of the Member States and the European Commission.

Furthermore, the Project Promoter clarifies that the positive socio-economic benefits and sustainability of the project have been positively evaluated and approved by the national and European competent authorities since 2017, based on the methodologies and cost-benefit analysis studies provided for by the European Regulation. The benefits and sustainability of the project have been evaluated and adopted by the EU in the context of securing €658 million in European funding, the largest that a project in Cyprus has historically received from the EU.

The project constitutes the creation of a cross-border energy infrastructure (electricity interconnection) of public interest, with free access and use by all network users and significant socio-economic benefits and is fully regulated (controlled) by the competent European authorities and national Regulatory Authorities of Energy in all phases of its development, construction and operation.

After the recent signing of the contract for the construction of the submarine cables, the Project Promoter together with its financial advisors are proceeding with the completion of the financing according to the financial plan. In addition to the European grant that has been secured and the private funds after the expression of participation by the Independent Power Transmission Operator of Greece, ADMIE, the position of the European Investment Bank is expected, based on which the rest of the financing procedures from other financial institutions will be finalised.

It is clarified that the participation of the Cypriot Government, as a shareholder, is not a factor in completing the financing of the project and was not included in the financial plan submitted by the Project Promoter. At the same time, the reference to the potential granting of state guarantees, if and when needed, arose from the possible financing of the project by the European Investment Bank, which in similar cases has been granted a state guarantee for the granting of a loan.

Taking into account the great importance of the project and the stage it is at, i.e. the start of construction work, the project Promoter remains at the disposal of the Cypriot government and the competent services in order, in cooperation with them, to institutionally provide any information and clarifications and to discuss any proposals that assist in the smooth continuation of implementation of the project.