Interconnector discussions to carry on ‘for as long as it takes’

Discussions regarding the regulatory framework for the Great Sea Interconnector connecting Cyprus to Crete will carry on “for as long as it takes”, deputy government spokesman Yiannis Antoniou said on Wednesday.

Speaking to Alpha TV, he said that after Tuesday’s roundtable meeting of stakeholders on the matter, discussions would continue “remotely”.

He added that Tuesday’s meeting was “productive and beneficial”, and that the government believes it is “on a good road, on the right road” over the matter.

On what was discussed, he said “everything at the moment is open”, but that it is hoped that with continued good-faith discussions with all the involved parties, “we will be able to conclude with a mutually beneficial decision” in which “all sides will have secured their own interests”.

He said the issues raised included technocratic, technical, economic, and legal matters, and that “we want to see [all sides’ positions] converge when it is possible.

“It is difficult to discuss this in detail but where there is good nature and good faith, we can see things will be gotten over,” he added.

“Our central question,” he said, “is over the reduction of energy costs for Cypriot homes and businesses. That is our approach.”

However, questions were raised over the issue of when a decision will be made, with the government having previously been expected to decide on the matter last week.

On this, Antoniou said discussions will carry on “for as long as it takes”, while at the same time, the government “recognises that time is not unlimited.”

“However, there are margins from the moment at which consultations are continuing, and no one wants to cut a discussion off which was going to conclude in a mutually acceptable agreement,” he said.

“We want to have the possibility to discuss this in a creative way without having a gun pressed to our head, but time is not unlimited. At some point, of course, when we have answers to our questions, we will also answer.”

Cyprus’ government was initially expected to make a decision over the regulatory framework of the GSI at a cabinet meeting a week ago, before first being pushed back to last Thursday, and then to Tuesday, when no decision was made.

Energy Minister George Papanastasiou called Tuesday’s talks “constructive”.

“We must continue the work where it began today. I cannot say anything else because it is work in progress,” he added.

Talks will continue via teleconference over the coming days, Antoniou said.

The main point of contention at present is Admie’s request for Cyprus to pay a total of €125 millionbetween 2025 and 2029 – before the interconnector is operational, in effect helping finance the project and ensuring that Admie will have a stable income before the project itself turns a profit.

In the end, a solution to the matter had reportedly been reached, with the Cypriot government set to utilise funds made available to it through the European Union’s emissions trading system (ETS) to pay the required €125m.

Admie had reportedly initially driven a hard bargain on the matter but, faced with the spectre of the project’s collapse and the possibility of being liable for tens of millions of euros to cable company Nexans, which had already been commissioned to start the project, they reportedly eventually backed down.

The matter of “geopolitical risk” is taking increasing precedence in discussions, with fears growing regarding the region’s potential geopolitical volatility.

The issue relates to possible interference with the laying of the cable by Turkish warships in the Aegean. Admie had sought reassurances that should anything occur beyond its control which would hinder the interconnector project, including Turkish interference, it would be able to recover the investments it had made up to that point.