The European Investment Bank (EIB) is still open to investing in the electricity interconnector project between Cyprus and Greece, its Vice President Kyriacos Kakouris said on Friday.
He stressed the project for the Great Sea Interconnector still needs to be evaluated, primarily from a technical viewpoint to assess its validity for loan.
Nonetheless, answers should be ready soon, he underlined during at the sidelines of an event with the finance minister, Paphos mayor and Tepak university.
The cost-benefit study submitted by Greece’s Independent Power Transmission Operator (Admie), which is the project’s promoter, is under evaluation and will be wrapped soon, Kakouris said.
He specified the results will determine the final investment decision of the Republic of Cyprus to take on a share of capital for the special purpose vehicle amounting to €100 million.
The vice president confirmed the EIB received the cost-benefit analysis from both Admie and the finance ministry at the end of July, and was asked to confirm projects linked to the government’s energy ambitions.
The government has offered responses, but the EIB requested more information, primarily for the financial planning surrounding the interconnector project.
Currently, the EIB is evaluating the material, Kakouris said.
“The evaluation of the study has not finished yet, but it is expected to be soon. This is what I have been assured of, monitoring the developments both in Cyprus and Greece, it is bound to be soon.”
He specified the EIB would be offering its official response much earlier than the end of the year.
Asked if the EIB has changed their initially cautious stance on financing the project, Kakouris said that since the contractor submitted the cost benefit study it is because they are seeking financing. He noted that “basically it was the same study with new cases submitted by the contractor”
“There is no question if we have changed anything, I can’t prejudge the decision of the bank’s services, they are looking at specific criteria, as always, as in any project there is a technical evaluation mainly of the proposal.”
Asked if along with the updated study, the amount of funding requested by the contractor has changed, Kakouris said that he does not recall if a specific amount has been requested.
The issue “was more about evaluating the project, mainly from a technical point of view, whether it is eligible for funding from our bank.”
In February, Kakouris made statements saying the EIB’s stance on the Great Sea Interconnector was negative after an evaluation which was carried out. Nonetheless, the government took steps to reevaluate the project and on Thursday pledged a financial stake for the interconnector.
The government has been at pains to find a solution to the mooted project, with Energy Minister George Papanastasiou earlier this year government is concerned the European Commission may withdraw its €657 million subsidy for the electricity connection between Cyprus and Greece as part of the project.
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