The Greek and Cypriot Regulatory Authorities have reached a joint decision to share 50%–50% of the geopolitical risk for the major electricity interconnection between Greece and Cyprus. Thus, the two sides commit that in case of cancellation or obstruction of the project by an external factor, without the responsibility of the implementing agency or the cooperating contractors, the recovery of the additional costs will be 50%–50% by Greece and Cyprus. 

This decision, together with the statements of the Cypriot side on its entry into the project, unlock the next steps on the financial and construction level and pave the way for the entry of new players in the project's shareholding.  Thus, geophysical surveys by the Italian company Next Geo have started within the Cypriot EEZ, while ADMIE has also proceeded with the payment of €26.8 million to Nexans for the continuation of the cable works.  By the end of 2024, Cyprus is expected to take the decision—positive, as it has committed itself politically—to participate with €100 million in the equity of the Great Sea Interconnector. It is noted that this amount will come from the Recovery and Resilience Fund.

According to the Cypriot Minister of Energy, George Papanastasiou, the project's legal, financial, and technical audit should be complete within the next few days. In order to do this, he will be given access by the implementing agency at the request of the Republic of Cyprus to the data room, which has all the information on the project, so that he can obtain the necessary information to complete due diligence. "I do not believe that the conclusions of the due diligence on the Cyprus-Crete electricity interconnection project with the Great Sea Interconnector hold any surprises; however, a shareholder who will participate in this huge project is right to know the project data", Mr. Papanastasiou pointed out, estimating that by early December the results of the audit should be evaluated so that a decision can be taken immediately and the participation can be implemented as soon as possible with the signing of a shareholders' agreement.

FINANCING 

Meanwhile, within the month the Minister of Environment and Energy, Theo Skylakakis, is due to meet with the leadership of the European Investment Bank in order to proceed with the discussions for the financing and approval of the €500 million loan.At the same time, Cypriot reports say that moves are being made with a Greek banking institution to provide a loan that could exceed one billion euros if the EIB does not give the go-ahead. 

INTEREST FROM NEW PLAYERS

Meanwhile, there is strong interest from new players to participate in the project, as was evident from the meeting between the President of the Republic of Cyprus, Nicos Christodoulides, and a delegation from the investment arm of the United Arab Emirates, TAQA. In this context, the steps to be taken for the UAE's participation in the project were discussed, while a meeting at technical level is expected to take place immediately in order to proceed with the necessary processes.