Akel asks anti-corruption authority to investigate Vasiliko terminal claims

Akel has requested the anti-corruption authority investigate claims by former energy minister George Papanastasiou that political interference and vested interests are delaying the construction of the Vasiliko natural gas terminal. The party said the allegations “raise relentless questions” on how President Nikos Christodoulides takes decisions, in energy and more widely. It asked, “who will investigate the allegations made by the former minister?” and whether the authority, which can act on its own initiative, should not have already acted. Papanastasiou made the remarks to Sigma, claiming during a podcast that both “politics and vested interests” obstruct infrastructure projects “because one is interested in giving it to A, the other is interested in giving it to B”. Related Articles • Eni signs $1.8bn contracts for Kronos gas field infrastructure • Government tells MPs Vasiliko expected to be operational by 2030 • Vasiliko: Eight interested contractors, but how many can actually complete the project? • Our View: Terminating contracts comes at a high price • Defa has learnt from mistakes over Vasiliko, chief says of new tender • MPs see Vasiliko problems ‘with own eyes’ Delays in the public sector were compounded by interventions of various kinds, “and these are the results of Vasilikos”, he said. In an earlier interview with Phileleftheros, Papanastasiou described the terminal as “a particularly burdensome” project with serious outstanding issues dating from the original contract award. In his view, the choice of contractor “was not the most appropriate for such a complex construction project” and the situation “worsened when a consortium member with a significant construction role withdrew”. Disagreements between the contractor and the natural gas infrastructure company (Etyfa), led to arbitration in London. The contractor’s claims amount to about €150 million, and further costs could arise while proceedings continue. Papanastasiou said the largest and most expensive element, the Prometheus floating storage and regasification unit, now belongs to Etyfa and therefore the state; the vessel was returned from a port abroad without additional payment. It remains outside Cyprus as it is more cost effective before the pier and onshore facilities are finalised. It must then be brought to the island, certified and shown to operate safely with the land facilities as one system. Papanastasiou said eight organisations have expressed interest in replacing the contractor. Taking over a partly built project carries extra technical and financial risk. The former minister said experience in completing unfinished energy projects should carry “particularly great weight” in the selection. He also said commitments to European funding and the banks financing the project must be taken into account. Papanastasiou said delays at Vasiliko, and the lack of adequate storage infrastructure, continue to push up energy costs.