Cyprus wants more assurances on planned electric cable link to Greece

Athens: Cyprus reaffirmed its commitment to a planned electric transmission cable to Greece but said on Thursday that technical and financial details needed to be ironed out before it could sink more funds into the project.

The so-called Great Sea Interconnector seeks to link the power grids of Greece via Crete, Cyprus and eventually Israel in a project costing 2.4 billion euros ($2.67 billion). The Greece-Cyprus section is estimated at 1.9 billion euros.

The project to build what would be the world’s longest and deepest underwater power cable has been the source of some unusual discord between the two historic allies, with Cyprus holding out for assurances on the viability of the project, while Greece wants a deal wrapped up swiftly.

The issue was discussed at a meeting between Greek Prime Minister Kyriakos Mitsotakis and Cypriot President Nikos Christodoulides in Athens on Thursday.

Christodoulides assured Mitsotakis of Cyprus’s political commitment and of taking a stake in the share capital of the project once a due diligence report had been finalized, a statement from the Cypriot Presidency said.

It said Cyprus also expected to see the formation of a special-purpose vehicle, for which advanced consultations were underway with third countries, which it did not name.

Nicosia on Tuesday said it would contribute 25 million euros annually over a five-year period towards the cable, but did not specify that it would sink money into its share capital, causing some consternation in Athens.

“We are optimistic… that there will be a positive outcome regarding the financial aspect, because this is the issue, this is the aspect of the specific project that is being discussed,” Greek government spokesperson Pavlos Marinakis said.