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Tag: Makis Keravnos

  • Great sea — DIKO Leader Criticises Government Inaction on Great Sea Interconnector

    Great sea — DIKO Leader Criticises Government Inaction on Great Sea Interconnector

    The Great Sea Interconnector has become a point of contention between President Nikos Christodoulides and DIKO leader Nicolas Papadopoulos, who has expressed frustration over the government’s inaction regarding the critical subsea electricity cable linking Cyprus to Greece and the broader European grid.

    Great sea: The Letter That Sparked the Crisis

    In mid-December, Papadopoulos sent a formal warning to the Presidential Palace detailing his concerns about the project’s management. He specifically pointed fingers at Finance Minister Makis Keravnos, accusing the government of hesitation that he believes is jeopardising national interests. The letter, which went unanswered, has ignited a public outcry from Papadopoulos during recent parliamentary sessions and media appearances.

    Warnings of Catastrophic Consequences

    In his correspondence, Papadopoulos outlined several dire outcomes should the Great Sea Interconnector fail to progress:

    • Financial Penalties: Cyprus has already invested approximately €302 million in the project. If cancelled, the state could face hefty compensation claims from the French contractor, Nexans, due to loss of revenue and breach of contract.
    • Legal Fallout: Nexans is reportedly in the process of cancelling sub-contracts and may shift responsibility to the Greek grid operator, ADMIE, which could then hold the Cypriot government accountable for not honouring agreements.
    • Diplomatic Rupture: The current governmental stance threatens to sever relations with key stakeholders, including the Greek government, the European Commission, and France.
    • Energy Isolation: A failure to complete the interconnector would leave Cyprus without access to a stable energy supply, enabling local monopolies to maintain high prices for consumers.

    Accusations of Sabotage

    Papadopoulos has been vocal about his belief that the progress of the interconnector is being undermined from within the government. He has directly accused Finance Minister Keravnos of questioning the project’s viability and withholding the necessary €25 million annual funding, despite a Cabinet-approved Memorandum of Understanding. Papadopoulos dismissed the Ministry’s requests for updated studies, referencing EU Energy Commissioner Dan Jørgensen’s assurance that existing studies are adequate.

    The Ultimatum

    In his letter, Papadopoulos called for an emergency meeting with President Christodoulides and the Ministers of Finance and Energy to discuss the deadlock. He warned that failing to hold this meeting would compel him to take his dissent public, a promise he has now fulfilled.

  • Finance Minister Keravnos Raises Concerns Over Great Sea Interconnector Funding

    Finance Minister Keravnos Raises Concerns Over Great Sea Interconnector Funding

    great sea — Finance Minister Makis Keravnos has voiced significant concerns regarding the funding of the Great Sea Interconnector (GSI) project, citing potential financial risks associated with its implementation. In remarks made following a meeting of the Council of Ministers on Monday, where the 2026 state budget was under consideration, Keravnos highlighted findings from various studies suggesting that the GSI may not be financially sustainable.

    Keravnos stated, “I still think this issue is under discussion. If we pay the money, there is a risk. As I have said, studies suggest that the project is not viable.” His comments reflect a consistent apprehension regarding the project’s feasibility, a sentiment he has expressed on multiple occasions.

    The GSI aims to connect the energy grids of Cyprus, Greece, and Israel, representing a significant step towards regional energy integration. However, the project has faced various challenges, leading to the Cypriot government withholding €25 million requested by Greece’s independent transmission system operator, Admie, to assist with its funding.

    During the budget preparations, Keravnos mentioned that both internal and external risks had been evaluated, with the GSI identified as a notable concern. He emphasised the uncertainty surrounding the final cost of the project, which adds another layer of complexity to funding decisions.

    In a related matter, the Minister addressed the European Commission’s demand for the return of €67 million related to the Vasiliko liquefied natural gas (LNG) terminal, which was never completed. Keravnos assured that the government is actively managing this issue, hinting at potential offsets with future funds. “We are not giving up, we are fighting,” he asserted, indicating a commitment to navigating the financial challenges ahead.

    When pressed by journalists about the possibility of negotiating the demanded amount, Keravnos firmly stated that the figure was not negotiable under any circumstances, reaffirming the government’s position on the matter.