Cyprus wants more assurances on planned electric cable link to Greece
ATHENS, Sept 19 (Reuters) -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.
($1 = 0.8977 euros)
Reporting by Angeliki Koutantou and Michele Kambas
Editing by Christina Fincher
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
