‘Get it right or risk being left behind’

Cyprus should take the opportunity for the interconnector project or it will be left behind to burn mazut and struggle with its green transition, US ambassador to Cyprus Julie Fisher said on Friday at the Economist Impact Summit in Greece.

Her statements come as a wave of uncertainty plagues the Great Sea Interconnector, with the government admitting there are “financial and legal” challenges amid ongoing negotiations with stakeholders from Greece and Cyprus.

Speaking at the Fourth Thessaloniki Metropolitan Summit, Fisher said Cyprus has struggled for quite some time with major projects, particularly major energy projects.

“We can point towards a successive series of leaders who have been involved” but stressed “now is the time to get it right.”

The ambassador specified Cyprus stands alone in terms of its electricity connection “and it is in a very precarious place.”

If Cyprus does not get it right, “these opportunities will pass by, and Cyprus will get left behind.”

Asked to comment about a possible US involvement in the Great Sea Interconnector project, government spokesman Konstantinos Letymbiotis said “we cannot exclude it, nor can we speak of it with certainty.”

He underlined that Cyprus is “a credible partner” and this has a positive impact on the investments it can attract.

“We cannot predetermine who will show an interest or how far it will progress.”

Letymbiotis specified that Nicosia’s goal in these strategic projects is to attract this kind of interest “and a country like the US expressing its support is a vote of confidence to the Republic of Cyprus.”

Fisher said a sustainable electrical connection will offer Cyprus positives, including the ability to bring more tech talent and AI developers.

“They need that reliable sustainable electricity connection. Cyprus has a burgeoning tech industry for a lot of reasons that have to do with some of the regional dynamics. They’re not going to be able to attract that without the reliability of the electricity grid.”

The challenge at present “is how to bring everybody along.”

The ambassador stipulated this is not a challenge for the US as it isn’t a US project or US companies involved.

“What’s in it for us? We’re looking to ensure security and stability in a region where there’s not enough of it.

“Cyprus is such an important partner for us as we think about the eastern Mediterranean. And shoring up the security and the supply is important for Cyprus; it is important for the citizens of Cyprus.

“Again, I can only stress, now is the time. Should this opportunity pass, it will be very difficult to see it come back again. And there is Cyprus, left burning mazut and working on its green transition but not there yet in terms of being able to produce what the country needs.”

Seeking to assuage concerns on the domestic front, Letymbiotis said a meeting slated for Tuesday regarding the project is considered useful by all parties involved.

He did not give a clear answer on whether the government has a plan B in case things go south, but said the state’s only concern is to ensure affordable electricity for the population.

Letymbiotis admitted there were challenges of a financial and legal scope but said this was expected for a project of this scale. Negotiations have been ongoing between Cyprus’ energy ministry, legal service, finance ministry, Greece’s independent power transmission system operator Admie, and the European Commission.

Addressing concerns about a cost-benefit report submitted by the Greek Independent Power Transmission Operator to the European Investment Bank (EIB), Letymbiotis confirmed that the government was in touch with the EIB to verify certain details. Additionally, he said that a separate cost-benefit study requested by the Cypriot government was in the tendering process.

He explained that the study was aimed at assessing whether the Republic of Cyprus would invest in the share capital of the company that undertook the interconnection project.

“We chose to act responsibly as a government, and I believe that is what society expects from us, clear and well-informed decisions based on accurate data.”

He reiterated that Tuesday’s meeting with all stakeholders will be valuable. “We are acting to ensure the best interests of the Cypriot consumer and to secure benefits for Cyprus.”

In response to a question that an agreement with timelines was reached between the energy ministries of Cyprus and Greece on Monday evening, and when asked what changed between Monday night and Wednesday afternoon regarding the Cabinet, the spokesman said, “it is obvious that any decisions are made at the Cabinet level.”

“A project like the implementation of the electricity interconnection, given its significance – geopolitically, economically, and its role in our energy planning has multiple aspects that must be examined, including financial and legal dimensions.”

Responding to rumours that the government was seeking ways to bypass parliamentary approval for the project, Letymbiotis said no such limitation or goal exists. “The only focus is on making well-informed decisions that benefit consumers and prevent electricity prices from rising.”

Regarding geopolitical risks, Letymbiotis said Cyprus exercises its sovereign rights as an EU member state, downplaying any concerns about sovereignty.

When asked if there were any issues concerning trust with the Greek government following recent developments, he underlined that relations between Athens and Nicosia remain strong. “There is no issue of trust. This is a large, EU-supported project of common interest.”