*Published on cyprusenergy.news
The progress of the Great Sea Interconnector project was the focus of a meeting of the Parliamentary Committee on Energy on Tuesday morning, shortly after developments regarding the acquisition of a majority stake in the project by the French investment group Meridiam. Statements by government officials and CERA executives revealed a broad consensus that the final cost of the interconnector will significantly exceed €1.9 billion, which has been cited to date as the project’s cost; however, no new, updated estimate was provided.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Rubio calls a Greek-Turkish conflict over GSI “unthinkable”
People are lining up at gas stations with 20 euros
Finance Minister Makis Keravnos explained to the Committee that the amount of €1.9 billion essentially corresponds to the cost of the undersea cable and does not include other construction projects, insurance coverage, storage infrastructure, and maintenance costs—factors that, according to him, will significantly increase the total cost. All these factors are being examined as part of the update to the feasibility study being conducted by the European Investment Bank.
READ ALSO: GSI Back in Parliament: Cost Estimates Exceeding €1.9 Billion, the “Troubled Past,” and Lawmakers’ Concerns
What’s Not Included in the Cable’s Cost
According to the Minister of Finance, the €1.9 billion covers only the undersea cable itself. Four additional categories of expenses are expected to be added to the project’s final cost.
| –Additional construction work beyond the undersea cable |
| –Insurance coverage for the project |
| –Energy storage infrastructure |
| –System maintenance costs |
What’s next for the share capital
| -EIB feasibility study expected by the end of 2026 The updated study will take into account construction projects, insurance, storage, and maintenance—factors currently missing from the €1.9 billion estimate |
| -Cyprus’s decision on participation in the share capital: Pending. The government will take a position only after the revised cost of the project is known, according to the Minister of Energy. |
| -Legal status of the 2021 commitments: Under review. The question of whether the Republic of Cyprus can withdraw from the commitments it undertook in 2021 regarding theinterconnection. The Minister of Energy described it as a particularly complex issue. |
THE MOST CATEGORICAL STATEMENT: “It is
naive to believe that the cable will ultimately cost only €1.9 billion.”
Akis Hatzigeorgiou, member of RAEK
RAEK President Polys Lemonaris stated that the project’s capital expenditure remains, for the time being, at €1.9 billion. The Authority’s vice president, Alkis Philippou, described the project as extremely important for Cyprus, but noted that the question of whether Cyprus will ultimately participate in the share capital remains open. He warned that, if the current situation remains unchanged, control and management of the cable will not be in Cypriot hands, clarifying that the ownership stake and the manner of the Republic of Cyprus’s participation are two separate issues.
PROJECT TIMELINE
| 2021 · The Republic of Cyprus makes commitments to implement the interconnector |
| A few weeks ago · The French group Meridiam acquires a majority stake in the project’s implementing entity |
| September 8, 2026 · The Parliamentary Committee on Energy discusses the project’s progress, without a new cost estimate |
| End of 2026 (estimate) · Completion of the EIB’s feasibility study and cost update |
