A new development in the status of the EuroAsia Interconnector project was reported on Wednesday following officially confirmed concerns that the project had ran into financing problems a mere 12 hours earlier.
According to Philenews on Wednesday, a final agreement between the EuroAsia Interconnector and the Norwegian company Nexans was signed for construction and installation, which is seen as a crucial breakthrough.
The Norwegian company has taken on construction and laying of the submarine cables through which the networks of Cyprus and Greece will be linked, in order to transfer 1 MW of power between the two states in the first phase, and 2,000MW in a later stage.
Official announcements are expected to be issued within the day, according to Phile.
The newspapers information states that the agreement was signed after long and tumultuous negotiations and the deal, worth €1.4 billion, will be implemented within a seven-year time frame.
The report further states that in a letter sent to the energy regulators of Greece and Cyprus, at the beginning of July, EuroAsia Interconnector has said the project would be implemented by the end of December 2029.
In the same letter, the company also said that due to changes in the price of raw materials, equipment and services, the budgeted cost had risen from €1.6 billion, calculated in 2017, to €1.94 billion, a re-assessment which was approved by Cyprus (Raek) and Greece (Rae).
Wednesdays latest development in the endeavour is presented as a crucial step towards realising the ambitious project and ending the island’s energy isolation.
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