Former Minister of Finance and executive president of the Glafcos Clerides Institute, Harris Georgiades, has called for an end to the wavering surrounding the Cyprus-Greece electricity interconnection project, saying the conflicting positions expressed in recent days are causing understandable confusion among the public.
Viability "already answered"
Speaking on Politis Radio's "Deuteri Matia" (107.6 and 97.6), Georgiades argued that the question of the Great Sea Interconnector's viability has effectively been answered for years. He said that if the project were assessed purely on private-investment criteria, as an ordinary commercial venture, it could not be judged viable in the same way as a typical business undertaking. For that reason, he added, years of costly studies were carried out, partly funded by the European Union, leading to the project being designated a Project of Common Interest. According to Georgiades, this designation enabled the creation of a regulated framework with guaranteed revenues and a predetermined rate of return for the implementing body.
How the funding framework works
Georgiades explained that this means the project cannot generate unlimited profits, but at the same time the implementing body is not left exposed to potential losses. The rate of return, he said, is determined through the regulatory frameworks in place in Cyprus and Greece. He also referred to the agreement covering the first five years of implementation, under which the burden on the Cypriot side will be covered by the state budget rather than directly by consumers, up to a maximum of €25 million annually. He stressed that Cyprus has not yet paid any money towards the project, either through the state budget or through electricity bills.
Government's mixed messaging
On the question of conflicting messages from the Government in recent days, Georgiades agreed that wavering has been evident, noting that the President of the Republic's most recent statements were notably positive and suggested the project was in a strong position. He recalled, however, that just a day earlier a different picture had been presented in the House of Representatives. "The continuous back-and-forth must end," he said, while making clear that DISY does not intend to turn the issue into a ground for opposition confrontation. He said the party's intention is to support efforts to implement the project and to jointly address the difficulties that arise, including Turkey's objections.
Questioning the need for new studies
Regarding the new studies expected, Georgiades questioned what more they could add, given that economic, technical and environmental studies had already been carried out, on the basis of which European funding was approved. He did not rule out the need to update the data, but set the condition that this should not become a pretext for further delays.
Energy security benefits
The former Finance Minister concluded that the project could strengthen the country's energy security and adequacy, easing problems that arise during periods of increased consumption.
