Cyprus has failed to persuade the European Climate Infrastructure and Environment Executive Agency (CINEA) to withdraw its demand for the return of 68.6 million euros in funding allocated for a liquid natural gas terminal at Vasilikos, philenews sources report.
CINEA recently informed authorities that their justification provided “no new or substantial evidence” to reverse the decision on the grant recall, according to government sources familiar with the matter.
The government plans to submit fresh arguments to CINEA in hopes of preserving the funding, though chances of success appear slim, the sources said.
The controversy emerged in July 2024 when CINEA demanded Cyprus return the funds, which were part of a larger 101 million euro grant for the terminal’s construction by the Natural Gas Infrastructure Company (ETYFA).
The EU agency’s decision followed confirmation of irregularities in the tender process that awarded the contract to a consortium led by China Petroleum Pipeline Engineering (CPP).
European authorities corroborated findings by Cyprus’s Audit Office that the CPP-led consortium’s technical evaluation score fell below the minimum requirement and should have been disqualified from the tender.
Additional concerns included questions over a consortium member’s years of experience and a controversial 25-million-euro contract increase, which was attributed to pandemic-related trade disruptions.
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