energy waterloo — The Cyprus-Greece interconnector project has been described as an ‘energy Waterloo’ by former Auditor General Odysseas Michaelides, who has raised serious concerns about the management and direction of the initiative.
In a recent social media post, Michaelides referenced a report by Phileleftheros detailing ongoing pressure from the Greek Independent Power Transmission Operator (ADMIE) on the Cypriot regulatory authority (RAEK) to receive tens of millions in payments. He highlighted a troubling lack of decisiveness from President Christodoulides, suggesting that the government’s approach is complicating the project further.
Energy waterloo: Concerns Over Government Decisions
Michaelides specifically called out President Christodoulides and his main governmental partner, Nikolas Papadopoulos, for their persistent support of the project “at any cost.” He argued that this insistence is leading Cyprus into a precarious financial situation as costs continue to escalate.
In August 2023, Michaelides informed both the European Commission and Cypriot Energy Minister G. Papanastasiou about issues surrounding the project’s Implementation Body, citing a troubling history of bankruptcy among its affiliates. He advocated for an open tender to find a more suitable entity to manage the project’s execution, but his warnings were disregarded.
Financial Implications and Investigations
Despite these red flags, the Christodoulides Government in October 2023 permitted the Implementation Body to sell the project’s “air” to ADMIE for a questionable sum of €48 million, a decision that is now under investigation by the European Public Prosecutor’s Office.
The situation escalated in September 2024 when the Council of Ministers decided to commit Cyprus to a prepayment of €125 million to ADMIE, prior to the project’s completion. This prepayment has raised eyebrows, especially given the latest cost estimate of €1.9 billion, which Michaelides claims is no longer realistic.
Calls for Accountability
Michaelides’s concerns resonate with many who fear that the current trajectory of the project could lead to significant financial repercussions for Cyprus. He emphasised that the only oversight comes from the Minister of Finance, who has publicly documented the disconnection between the revised cost estimates and reality.
As the project progresses, the community watches closely, questioning who will ultimately bear the financial burden. The ongoing developments surrounding the Cyprus-Greece interconnector project remain a point of contention, with implications that extend beyond mere financial figures to the broader energy strategy of Cyprus.