EIB vice president: ‘no new funding request for Great Sea Interconnector’

The vice president of the European Investment Bank (EIB) Kyriacos Kakouris on Thursday confirmed that the EIB’s stance on the Great Sea Interconnector, the electrical interconnection project between Cyprus, Greece, and Israel, remains negative.

Kakouris, who made these comments during a press conference at the Finance Ministry, during which the bank’s results were presented, also stated that no new funding request for the project has been submitted by the Republic of Cyprus.

“The bank’s position is well-known. We have communicated it to the Ministry of Energy and the Ministry of Finance several months ago. The evaluation conducted at that time was negative,” the EIB vice president said.

“The Republic of Cyprus’ government took the initiative to reevaluate the situation, and my understanding is that a new assessment will be carried out,” he added.

As previously disclosed by the Minister of Energy, George Papastasiou, the government of Cyprus intends to participate in the project with a capital injection of €100 million.

However, the execution of a due diligence report is pending. The project had previously received a positive evaluation from an international consultancy firm, according to a report by the Cyprus News Agency (CNA).

“To reconsider (funding) this project, the Republic of Cyprus must submit a request, and as of now, we have not received such a request,” Kakouris said.

Responding to comments by the President of the Cyprus Chamber of Commerce and Industry (Keve), Stavros Stavrou, expressing concern about the lack of financing for the Electricity Authority of Cyprus (EAC) and its network, Kakouris stated that no funding request had been made by the EAC to the EIB.

Kakouris agreed with Stavrou’s remarks, acknowledging that there are significant delays in upgrading the network to absorb renewable energy sources.

He mentioned that he would meet with the new board of directors of the EAC on Friday, March 1.

Meanwhile, Pilar Solano, director of the EIB for Central and Southeastern Europe, said that supporting the modernisation of the electrical network is a priority for the EIB.

She stressed the importance of upgrading the transmission and distribution networks for a successful green transition, stating that the EIB possesses considerable expertise in this area.