Nicosia: The Greek government considers the agreement for the entry of French investment group Meridiam as the majority shareholder in the Great Sea Interconnector (GSI) company to be of particular importance for the Greece-Cyprus electricity interconnection project.
According to Cyprus News Agency, the GSI was designed from the outset as the Special Purpose Vehicle (SPV) for the development and implementation of the project, with the participation of strategic investors. "The agreement with Meridiam represents the implementation of this planning and, following the successful share capital increase of the Independent Power Transmission Operator (IPTO - ADMIE), strengthens the project's financial capacity," the same sources noted, while stressing that the IPTO remains a strategic shareholder and key partner with statutory minority rights, retains the technical leadership of the project, and will be responsible for operating the interconnection once it is completed.
"The agreement signed constitutes a strong vote of confidence in Greece's energy sector and in the IPTO, as the project's implementing body," the same sources said, adding that the cooperation is accompanied by the signing of a strategic agreement between the IPTO, the GSI and Nexans. The three parties will work together from day one to accelerate the works, with priority given to the completion of seabed surveys.
Athens deems that Meridiam's participation in the share capital of IPTO's subsidiary, GSI, significantly enhances the project, as it brings international expertise and strong investment credibility, reinforcing the company's strategic objective: connecting Cyprus to the European electricity system through Greece and enhancing the energy security and resilience of both countries.
The agreement is expected to act as a catalyst for resolving the project's regulatory pending issues and to contribute to its long-term financing by the banking sector, strengthening the security and stability of its financial structure, it is noted. It is further added that the process for approving funding for the project by the European Investment Bank (EIB) is also underway.
At the same time, the development of the Cyprus-Israel electricity interconnection is progressing. Greek government sources underlined that the IPTO, as the project's implementing body, has completed and will send in the coming days the cost-benefit analysis to the regulatory authorities of Cyprus and Israel, marking an important milestone for the project's advancement.