Finance Minister Makris Keravnos has voiced fresh doubts about the Great Sea Interconnector, highlighting a possible rift within the government over the billion-euro infrastructure energy project.
Keravnos said on Tuesday he was “not particularly optimistic” about GSI, a major electricity link project between Cyprus, Greece and Israel, citing political obstacles from Turkey and financial concerns raised by independent advisers.
The minister’s comments came days after a meeting between the energy ministers of Greece and Cyprus, where they discussed American advisers’ observations about the project.
While Energy Minister George Papanastasiou appeared initially satisfied with Greece’s response to Cyprus’s requests, Keravnos maintained his reservations about both geopolitical risks and economic viability.
A key concern is Turkey’s position on the project, with required navigational warnings (navtex) for seabed surveys in international waters still pending. These surveys are necessary for French company Nexans to complete cable-laying designs.
Keravnos referenced a due diligence study by American law firm Curtis, Mallet-Prevost, Colt and Mosle LLP, which warned of financial risks in Cyprus’s participation as a shareholder and questioned the project’s viability.
The disagreement could lead to political complications within the government, as the energy minister, supported by Deputy Minister to the President Irene Piki, moves towards a preliminary investment agreement while the finance minister signals his opposition to the cabinet.
In a separate development, Greece’s power grid operator IPTO informed the Greek parliament that its preliminary agreement with French investment firm Meridiam for a 49.9% stake in GSI was neither final nor binding for either party.
Responding to journalists’ questions at a Cyprus Hotel Association meeting, Keravnos said he had not been briefed about recent correspondence between the Greek and Cypriot energy ministers, as the matter was being handled by the energy ministry.
“The concerns have been confirmed by expert studies commissioned for this project,” Keravnos said. “These concerns will need to be discussed.”
