The Cyprus Energy Regulatory Authority (CERA) has requested concrete financial guarantees from IPTO, the implementing entity of the Cyprus-Greece electricity interconnection project.
CERA Vice President Alkis Philippou expressed concerns over the potential for cost overruns, stating that the current €1.9 billion budget has not been guaranteed. While seabed surveys and equipment negotiations are progressing, the authority is adamant that the final cost must not exceed the estimated figure.
The relationship between CERA and IPTO has been strained over the issue of cost recovery in the event of project termination due to geopolitical factors. CERA has rejected IPTO’s request for additional assurances on this matter, placing the onus on the Ministry of Energy to address potential uncertainties.
IPTO has responded to CERA’s position with a financial model, which is currently under review. The company has also issued a warning that the project could be halted if CERA does not reconsider its stance by mid-August.
The project’s future hangs in the balance as CERA faces pressure from multiple stakeholders to approve cost recovery and avoid potential delays or cancellations.
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