**Title: Government Divided Over Great Sea Interconnector Project**
The ongoing debate surrounding the Great Sea Interconnector (GSI) has revealed significant divisions within the Cypriot government, particularly between the Finance and Energy ministries. The GSI, a major infrastructure project aimed at enhancing energy security in the region, has faced skepticism from key government officials, raising questions about its viability and the commitment of the Christodoulides administration.
Despite having signed an agreement to implement the GSI, which includes a commitment to contribute €25 million annually, the government has not fulfilled this financial obligation for the current year. Finance Minister Makis Keravnos has been the most vocal critic of the project, consistently expressing doubts about its feasibility. During a recent session at the House, he reiterated his concerns, stating that the estimated cost of €1.9 billion only accounts for the subsea cable, excluding additional expenses such as insurance, maintenance, and warehousing.
Keravnos emphasized the need for updated financial data before any investment decision could be made, citing potential impacts on public finances. He referenced a 2017 study conducted by the Cyprus energy regulator, which indicated that the operational cost of the GSI would be 3.7 cents per kilowatt-hour. Additionally, he pointed to a due diligence report from a US firm in 2024 that warned of significant financial risks and inadequate profitability associated with the project.
The Finance Minister's persistent skepticism raises questions about the government's commitment to the GSI, especially given its prior indications of support. Observers have speculated whether the arguments presented by Keravnos are a precursor to withdrawing support should the ongoing viability study yield unfavorable results.
In contrast, Energy Minister Michael Damianos offered a different perspective during the same House meeting. He framed the GSI as a crucial initiative for energy security rather than a mere cost-saving measure. Damianos underscored the geopolitical significance of the project for Cyprus, Greece, and Israel, suggesting that if the costs were deemed excessive, alternative investment sources could be pursued.
This divergence in viewpoints between the two ministers highlights a lack of cohesion within the government regarding the GSI. The public disagreement is particularly striking given President Christodoulides' apparent backing of the project, especially following the recent announcement that French investment group Meridiam has acquired a two-thirds stake in the GSI from Greece’s Admie. Meridiam's expertise in large infrastructure projects adds a layer of credibility to the initiative.
The conflicting messages sent by Keravnos and Damianos have led to concerns about the government's overall strategy and decision-making process. Critics argue that a unified front is essential for the successful advancement of such a significant project. The ongoing viability study, which is yet to be completed, should ideally inform the government's stance on the GSI, rather than allowing individual ministers to express opposing views prematurely.
As the debate continues, stakeholders in Cyprus and the broader region are left to ponder the future of the Great Sea Interconnector. With the potential for enhanced energy security and economic benefits, the project's fate now hinges on the government's ability to reconcile its internal differences and present a coherent strategy moving forward.