The results of a House assessment of the Great Sea Interconnector feasibility study are expected to be set forth on Tuesday.
The presentation on the recently renamed project, previously the EuroAsia Interconnector, involves the electrical undersea linkage of Israel, Cyprus and Crete.
In statements to the Cyprus News Agency, Papanastasiou said that the project’s feasibility was evaluated in the three areas of sustainability, contribution to the island’s electricity market, and geopolitical value “in the wider environment of the Eastern Mediterranean”.
The House will reference these aspects in its evaluation, Papanastasiou said.
Last week the minister had said a team of experts were expected to contribute to the study concerning the feasibility of Cyprus’ participation as a stakeholder in the project.
The report was also to compare the project to potential alternatives, such as boosting the storage capacities of Cyprus’ own electricity grid.
He recalled that a deadline had been set for January 31 for taking a decision on the matter.
The ministry of energy has invited representatives of all ministries to be present at the briefing, which is to be followed by a discussion and investment decision, Papanastasiou said.
“If an investment decision is made, the Republic of Cyprus will enter as a shareholder in the company that owns the project,” he said.
Papanastasiou explained that the Independent Electricity Transmission Operator of Greece (Admie), which is the implementing body of the project, will set up a holding company (SPV) and would then seek to raise equity capital.
“If and when the Republic […] decides to participate in the project, it would express interest in acquiring equity capital, as well as [SEEK OUT] any other interested investment funders,” the minister said.
He noted that Cyprus could invest up to €100 million and assuming this happened, Cyprus and Admie would jointly hold the majority stake in the holding company.
Greece’s Admie is 51 per cent owned by the Greek state. The State Grid Corporation of China has a 24 per cent stake, with the rest owned by other investors.
In January 2022 the European Commission had approved €657 million under the Connecting Europe Facility (CEF) for the cable project. There was also an additional grant of €100 million through the Cyprus Recovery and Resilience Plan, part of the EU Recovery and Resilience Facility (RRF).
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