The Cyprus Natural Gas Infrastructure Company (ETYFA) is in the final stages of selecting a project manager to oversee the completion of the long-delayed Vasilikos LNG terminal, a complex and high-profile project vital to Cyprus’ energy strategy.
Speaking to Phileleftheros, ETYFA and DEFA Chairman George Ashikalis highlighted the extensive efforts by both the agency and its board to evaluate bids and select the most suitable candidate. Ashikalis described the process as “extremely intricate,” compounded by the cancellation of the original contractor, CPP, and subsequent work stoppages.
“Public procurement procedures are inherently time-consuming, but the dual-phase nature of this tender added extra layers of complexity,” said Ashikalis. Despite the challenges, he noted that the four-month timeframe to reach this near-final stage was relatively swift, given the project’s troubled history.
Focus on Completion and Unresolved Challenges
Ashikalis emphasised that alongside the tender process, ETYFA has worked tirelessly to address parallel issues, including the release of the Prometheus vessel from logistical and contractual complications. He called this resolution a “major win for Cyprus’ interests.”
Additionally, the organisation continues to manage an arbitration case in London, with legal counsel from both Nicosia and London advising on the matter. Ashikalis declined to reveal the status of the project manager evaluation but confirmed that a decision and contract signing are imminent.
Unofficial sources suggest the frontrunner is an internationally reputed firm with extensive experience in managing incomplete and problematic infrastructure projects.
Next Steps: Owner’s Engineer and Construction Tenders
Following the project manager selection, ETYFA plans to issue a tender for a new owner’s engineer to replace Hill International, whose contract has expired and was not renewed.
The appointment of a project manager is expected to pave the way for new tenders to identify contractors to complete the jetty and onshore facilities at Vasilikos. Ashikalis underscored the importance of quickly assessing the site’s condition, left incomplete by the Chinese contractor CPP, which has yet to fully hand over documentation, designs, and subcontractor agreements.
The incoming project manager will be tasked with cataloguing pending work and cost estimates to accelerate the next construction tender. “We aim to use all available legal provisions to fast-track the completion of this critical project,” Ashikalis said.
Prometheas Certification and Leasing Plans
In parallel, ETYFA is preparing tenders for the certification and potential leasing of the Prometheas vessel as a Floating Storage and Regasification Unit (FSRU). The ship, which received a Lloyd’s certification for LNG transport in Shanghai, will undergo further inspection in Malaysia to assess its readiness for FSRU operations.
Initial inspections have eased concerns about substantial deficiencies, with early estimates of €12–13 million in repair costs likely overstated. ETYFA is now awaiting a final technical report to determine the vessel’s suitability for interim use as an FSRU while the Vasilikos terminal is completed.
The developments mark a significant step forward in Cyprus’ energy transition, with Ashikalis expressing cautious optimism that the project is finally gaining momentum after years of delays.
