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The first time we heard about DEFA becoming a semi-public body was in 2020.
After a delay of two years, it seems that the government is now ready to proceed with the establishment of a semi-sovereign body under the name "Public Enterprise of Natural Gas". The decision was taken at a previous meeting of the Cabinet of Ministers and now the relevant bill has been submitted to the Parliament for voting.
The main purpose of the transformation of DEFA from a private company wholly owned by the state into a semi-governmental organization is the supply of natural gas to the Republic, its distribution and transportation within the Republic and the development, operation and management of all necessary infrastructure for the exercise of its duties and responsibilities.
By becoming a semi-public body, DEFA acquires extended powers[/B] and may proceed with the construction of networks for the transmission of natural gas within Cyprus, such as from Vasilikos to the Dhekelia power plant.
Asked by the Cyprus Times whether at this point in time there is any need for the procedures for the transformation of DEFA into a semi-public body to be initiated more immediately, a competent source replied in the negative, noting that the procedures have now been advanced and there is nothing else beyond that.
Board and terms of office
DEFA will be governed by a board of directors, which will come under the Ministry of Energy and will consist of a chairman, vice-chairman and seven members. Of these, two will be the Directors General of the Ministries of Energy and Finance.
Their term of office is set at 30 months and they have the possibility of being appointed for a further term.
According to the bill, DEFA may:
- Construct, operate and manage a natural gas distribution, transmission and storage system.
- Operate a liquefied natural gas system or a combined natural gas system.
- Supply natural gas to be made available on the domestic market.
- Establish companies or participate in companies to carry out gas-related activities including companies for the construction of natural gas infrastructure.
- Establish companies or participate in companies to carry out gas-related activities including companies for the construction of natural gas infrastructure.
- Supply natural gas to be made available on the domestic market.
- Establish companies or participate in companies to carry out gas-related activities including companies for the construction of natural gas infrastructure.
- Enter into loans to finance its activities with the approval of the Council of Ministers.
- Carry out other operations or activities related to the natural gas market such as, for example, purchasing, constructing, reconstructing, installing, maintaining and managing plant and machinery and all buildings and factories used in connection therewith.
Views & opinions expressed are those of the author and/or Cyprus Times
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