Left-wing opposition AKEL, has raised concerns over potential additional costs to the state stemming from the Vasiliko natural gas terminal project, which could amount to approximately €550 million.
In a letter to the Finance Minister on Monday, AKEL’s Parliamentary Representative, Giorgos Loukaides, cited recent media reports suggesting significant financial implications for the Republic of Cyprus following the project’s cancellation.
According to the reports, Cyprus may need to repay €220-230 million to European financial institutions by the end of the month. Additionally, the European Commission is demanding the return of a €73 million grant.
The letter also highlighted a reported €230 million required to complete land-based works at Vasiliko and resolve issues with the consortium.
These potential costs come on top of the €250 million already paid to the Chinese consortium without the delivery of the floating natural gas regasification unit “Prometheus”.
AKEL expressed further concern about possible additional expenses arising from claims at the London Arbitration Tribunal.
The opposition party also pointed to the indirect costs borne by Cypriot households and businesses through greenhouse gas emissions permits. Since January 2019, €958.5 million has reportedly been spent on these permits, contributing to higher electricity prices and increased living costs.
Loukaides requested confirmation of these figures and sought details on the government’s plans for completing the project, including timelines and potential infrastructure restoration costs.
The party has called for a swift response from the Finance Minister, emphasising the critical nature of the issue for Cyprus’s economy and energy strategy.
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