Nicosia: Cyprus Finance Minister, Makis Keravnos, warned on Monday of a risk that will be taken if funds for the electricity interconnection project Great Sea Interconnector are allocated, adding that studies indicate that the project is not viable.
According to Cyprus News Agency, Keravnos made these remarks following a Council of Ministers meeting where the 2026 state budget was approved. He emphasized that no funds have been allocated to the GSI yet, as discussions are ongoing. Keravnos stated, “If we give the money, there is a risk. As I have said, there are studies indicating that the project is not viable.”
In response to inquiries about the possibility of Cyprus bearing the interconnection’s costs if the project remains stalled, Keravnos acknowledged that the GSI project is a factor considered in the budget’s risk assessment. He further commented on the uncertainty surrounding the project’s cost, saying, “No one actually knows the cost.” When questioned about existing interstate agreements and memoranda, Keravnos replied, “I am informing you of what I know. I have not signed any memorandum.”
Regarding the request from CINEA (the European Climate, Environment and Infrastructure Executive Agency of the European Commission) to return 67 million pounds for the incomplete LNG Terminal in Vasiliko, Keravnos noted that this issue was recently raised and has been factored into the budget’s risk considerations. He mentioned that actions are being taken to potentially offset the situation with other funds. “We are not giving up; we are fighting battles,” he declared. When asked about negotiating the amount, the Finance Minister firmly stated that “the amount is not subject to negotiation under any circumstances.”