The Crete – Cyprus – Israel Crete – Cyprus – Israel cable, worth more than 1.9 billion, a project of strategic importance for Cyprus’ exit from its energy isolation that remains mired amid geopolitical infill and regulatory difficulties, is in danger of becoming a financial minefield for consumers and state coffers.
Ninety days after the electric interconnection was frozen (at the end of February), the project is only generating delays and costs with the actual costs impossible to calculate accurately, although it is clear – even with the scant data available that the bill is steadily growing with a visible risk, under the interstate agreement, of being passed on to Greek and Cypriot consumers and to state budgets.
Sources with knowledge of the financial dimension of the project speak of a heavy bill. Officially, ADMIE reports costs exceeding €250 million, but leaves out of the calculation the claimed compensation for delays, as well as the costs for the seabed surveys.
However, regulatory circles are talking about payments of more than €420 million, citing statements by ADMIE officials, which include the costs of the cable to contractor Nexans, but also the seabed surveys on which the operator appears to have spent €41 million, not even counting another €19 million for the additional ship delays (stoppages) that will be paid if the relevant budget is approved by the two regulators (RAAEY – RAEK), and €48 million for the acquisition of the project by Cypriot businessman Nassos Ktoridis.
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