The Greek government has described the agreement for French investment group Meridiam to become the majority shareholder in Great Sea Interconnector (GSI) as a significant development for the Greece-Cyprus electricity interconnection project.
Government sources said GSI had been established from the outset as the special purpose vehicle (SPV) responsible for developing and delivering the project, with the participation of strategic investors.
"The agreement with Meridiam puts that plan into effect and, following ADMIE's successful share capital increase, further strengthens the project's financial capacity," the sources said. They added that Greece's Independent Power Transmission Operator (ADMIE) will remain a strategic shareholder and key partner with minority veto rights, while retaining technical leadership of the project and responsibility for operating the interconnector once it is completed.
International expertise
The sources described the agreement as "a strong vote of confidence" in Greece's energy sector and in ADMIE as the project's implementing body.
They added that the deal is accompanied by a strategic agreement between ADMIE, GSI and French cable manufacturer Nexans, under which the three parties will work together from the outset to accelerate the project, with priority given to completing offshore seabed surveys.
According to the Greek government, Meridiam's participation in the share capital of ADMIE's subsidiary GSI will significantly strengthen the project by bringing international expertise and strong investment credibility. The move supports the company's strategic objective of connecting Cyprus to the European electricity grid via Greece, while enhancing the energy security and resilience of both countries.
The agreement is also expected to help resolve outstanding regulatory issues and facilitate the project's long-term financing through the banking sector, strengthening the security and stability of its funding structure. At the same time, the process for securing financing from the European Investment Bank (EIB) is continuing.
Meanwhile, work is also progressing on the planned Cyprus-Israel electricity interconnection. Greek government sources said ADMIE, as the project promoter, has completed the cost-benefit analysis and will submit it to the Cypriot and Israeli regulatory authorities in the coming days, marking an important milestone in the project's development.
Source: CNA
