A state audit has uncovered serious issues in the licensing, construction, and upcoming operation of the privately owned PEC power station in Vasilikos, raising concerns over procedural violations and potential government accountability.
The audit report, compiled by the Audit Office, has been submitted to relevant ministries for comments, some of which reportedly bear significant responsibility for the irregularities identified. Senior government officials reviewing the findings have expressed alarm over apparent legal shortcuts in licensing a project valued at hundreds of millions of euros.
While no official details have been disclosed, sources indicate that several key permits required for infrastructure development were either missing or improperly issued. The report is expected to be finalised and made public by late February.
The issue dates back to December 2023, when the state-run Electricity Authority of Cyprus (EAC) filed a complaint alleging legal violations in PEC’s construction and operation. The EAC claimed that PEC had unlawfully occupied a state-owned coastal plot (No. 558), leased to the EAC for pumping station infrastructure. Additionally, the power company reportedly utilised land from a nearby naval base without proper authorisation.
The controversy resurfaced in November 2024 following a meeting between EAC Chairman Georgios Petrou and trade union representatives, where discussions centred on the disputed land. Reports suggest that despite internal opposition, EAC management faced political pressure to relinquish the leased plot, allowing the government to reassign it to PEC. Potential compensatory measures for the EAC were also discussed.
Government ministries are expected to provide feedback on the audit findings in the coming days, which will be incorporated into the final report.
The Electricity Authority of Cyprus (EAC) has accused private energy company P.E.C. POWERENERGY CYPRUS LTD of carrying out unauthorised construction near the Vasilikos power station, warning that the works pose significant risks to the plant’s operation and the surrounding environment.
According to the complaint, PEC built a seawater pumping station—used for cooling its generators—on a coastal plot (No. 558) southwest of the Vasilikos plant. The plot is leased exclusively to EAC under a long-term agreement. The utility claims the construction constitutes an illegal encroachment and has demanded its removal, warning of potential legal action.
EAC further alleges that PEC failed to obtain the necessary planning permits for the pumping station, the intake and discharge pipelines for seawater cooling, and a land-based supply pipeline passing through a naval base.
In response, PEC has denied any wrongdoing, stating that all construction proceeded with approvals from the relevant authorities. The company argues that EAC’s complaint is an attempt to obstruct the completion and operation of the private power station.
