Cyprus welcomes GSI deal but awaits EIB review before investment decision

Economy energyfranceGreat Sea InterconnectorGreeceTop News Cyprus welcomes GSI deal but awaits EIB review before investment decision Gsi Kalodio Sti Thalassa Relevant News Cyprus welcomes GSI deal but awaits EIB review before investment decision 7 August 2026 Erhurman rejects EU role in Cyprus talks and sets conditions for engagement 7 August 2026 Christodoulides uses cabinet reshuffle to reinforce centre-right agenda ahead of 2028 7 August 2026 Chrysanthos Manoli 7 August 2026 FacebookXWhatsAppEmailPrintViber Cyprus has welcomed the agreement giving France’s Meridiam a controlling stake in the Great Sea Interconnector (GSI) but says it will not decide whether to invest in the project until the European Investment Bank (EIB) completes its due diligence review. Government officials also acknowledge they have only limited information about the agreement itself, saying Cyprus has not seen its full contents because it is not a party to the investment. As a result, the government says it cannot fully brief political parties on the deal despite calls for greater transparency. The agreement between Greece’s Independent Power Transmission Operator (IPTO) and Meridiam was announced on Wednesday and provides for the French infrastructure investor to acquire a two-thirds stake in the electricity interconnection project. Energy Minister Michalis Damianou welcomed Meridiam’s entry as the majority shareholder after speaking by telephone with his Greek counterpart, Stavros Papastavrou, describing the move as giving the project “tremendous new momentum” and representing a vote of confidence in the electricity interconnection. He said Cyprus would decide on any equity participation only after the EIB completed its due diligence study, which he hoped would be finalised before the end of 2026. “If the cost has increased beyond €1.9 billion, we will have to examine how any additional funding requirements would be covered by investors.” The government’s understanding of the agreement is based largely on media reports, Damianou’s conversation with Papastavrou and recent discussions between President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis. Officials say Cyprus cannot demand disclosure of the full agreement because it is a contract between two private-law entities and the Republic is not a contracting party. The change in ownership could nevertheless require the Cyprus Energy Regulatory Authority (CERA) to update existing regulatory decisions relating to the project owner and implementing body once the investors formally notify the regulator. According to the report, CERA has not received any official communication from IPTO or the Greek authorities. Greek media reported that IPTO, Meridiam and Nexans had agreed to move quickly with seabed surveys, which would require NAVTEX notices reserving sea areas for the survey vessel. The reports said the notices could be issued in early autumn, although there has been no official confirmation from the Greek government. The financial terms of the agreement also remain unconfirmed. Some media reports said Meridiam would reimburse IPTO for 66% of the project’s costs to date, reported at around €250 million, and cover the remaining cost of the seabed surveys. Those reports have not been confirmed by an official source. The agreement also prompted renewed debate over the project’s financial viability. Greek Deputy Prime Minister Kostis Hatzidakis said the agreement between IPTO and Meridiam answered doubts about the viability of the Greece-Cyprus electricity interconnection. “The doubts about the Greece-Cyprus electricity interconnection cable have been consigned to the dustbin following the agreement between IPTO and France’s Meridiam. I wonder what they will say now.” Damianou reiterated that Cyprus would wait for the EIB’s due diligence before deciding whether participation in the project would benefit the Cypriot economy and electricity consumers. Subscribe to our Newsletter Latest News Erhurman rejects EU role in Cyprus talks and sets conditions for engagement Christodoulides uses cabinet reshuffle to reinforce centre-right agenda ahead of 2028 The story behind the song ‘Limassol’ and four other Cyprus-linked tracks Weekend guide: Cocktails, beach dining and stargazing under the Troodos sky More than one-third of ambulance workload involved non-urgent transfers, report finds 40 degree peak and yellow weather warning for Friday Spy case extradition hearing delayed again after Azerbaijani interpreter fails to appear Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.