The Cypriot government will address the potential geopolitical risks and financial implications related to Turkish interference with the planned electricity interconnection project at a high-level meeting scheduled for Tuesday. The meeting, chaired by President Christodoulides, will focus on the significant issue of potential Turkish disruptions and their impact on the project, which involves both Cyprus and Greece.
The project, intended to connect the electricity grids of Cyprus and Greece, faces the risk of delay or failure due to unforeseen external factors, potentially classified as “force majeure.” Officials are concerned about the financial repercussions if such disruptions occur, including the possibility of significant payments to the Greek Transmission System Operator (ADMIE) and the cable manufacturer Nexans.
The Cypriot government is particularly anxious about scenarios where project delays, not caused by the implementing agency, might lead to the obligation for Cyprus and Greece to cover the full or substantial cost of the cable, as per the contract terms with Nexans. The project’s total cost is estimated at 1.4 billion euros.
Sources suggest that the meeting will address how to mitigate the financial burden on Cypriot and Greek consumers if the cable is partially constructed but the full contract value is claimed. There are concerns that consumers might end up paying for a project that might not be fully operational or completed.
The upcoming discussion will also include the role of Nexans and the European Commission in potentially covering costs to minimize the financial impact on consumers. The government aims to explore ways to involve the EU more significantly in funding the project and addressing the risks associated with potential Turkish intervention.
The meeting on Tuesday will seek to clarify the financial responsibilities of ADMIE and the two governments under various scenarios, including potential Turkish interference that could disrupt the project’s progress. The government hopes to get clear answers on the financial implications from Nexans and determine possible EU support measures to reduce consumer costs.
