**Title: Cyprus Authorities Surprised by Major Stake Acquisition in Great Sea Interconnector**
Cyprus authorities were taken by surprise with the recent acquisition of a two-thirds stake in the Great Sea Interconnector (GSI) by French investment group Meridiam, previously held by Greece’s state-owned Admie. The announcement came just hours before a signing ceremony in Athens, leaving both the Ministry of Energy and the energy regulator unaware of the impending deal.
Reports indicate that President Nikos Christodoulides was kept informed about the developments by Greek Prime Minister Kyriakos Mitsotakis, but other Cypriot officials were not privy to the negotiations. This lack of communication has raised questions about the transparency and coordination between the involved governments, particularly since the GSI project is crucial for Cyprus's energy security.
The deal does not require the approval of the Cypriot government, as it is a business arrangement between Admie and Meridiam. Despite this, the implications of the acquisition are significant for Cyprus, as Admie will continue to manage the GSI project, now with a larger French investment component. The cables for the interconnector will be supplied by the French company Nexans.
At the signing ceremony, Prime Minister Mitsotakis emphasized that Meridiam’s involvement marks a "new state of affairs for the development of the project," which aims to end Cyprus's energy isolation. The project has garnered support from France, Greece, and the European Commission, which is set to contribute approximately €600 million towards the estimated €1.9 billion cost of the GSI.
However, the Cypriot government has been hesitant to fully commit to the GSI. Finance Minister Makis Keravnos has publicly expressed concerns about the project's financial viability, a stance that contrasts with the support previously shown by former energy minister George Papanastasiou, who is no longer in the cabinet. The current administration has yet to allocate any funds to the project, including the agreed annual payment of €25 million, and has called for a new financial viability study from the European Investment Bank (EIB), which has not yet been completed.
Tensions between the Cypriot and Greek governments have also surfaced, particularly when Christodoulides accused Admie of blackmailing Cyprus regarding the project's financing. This public disagreement was later addressed through an agreement to commission a feasibility study, although the outcome of this study remains uncertain.
The situation raises concerns about the future of Meridiam’s investment in the GSI if the EIB study concludes that the project is not financially viable. Observers speculate that the EIB study may have been a tactic to delay the project's progress, as the Christodoulides government has been reluctant to implement a modest levy on electricity bills to fund its share of the investment.
Despite these challenges, the recent developments suggest that progress on the GSI is now more likely. With the backing of President Macron and the significant investment from Meridiam, it is anticipated that the Christodoulides administration will face pressure to facilitate the project's implementation rather than hinder it.
As the GSI project moves forward, it remains to be seen how the Cypriot government will navigate its commitments and address the financial concerns that have stalled its involvement thus far. The coming months will be critical for determining the project's trajectory and its potential impact on Cyprus's energy landscape.