EuroAsia Interconnector Limited, the project promoter of the European project of common interest (PCI) connecting the electricity grids of Israel, Cyprus, Crete and Attica in Greece, announced that it will proceed with a capital increase and bond issue to safeguard the “financial closure” for the construction of the entire project which will cost EUR €2.758 bln.
The Nicosia-based company said that the first 1,000MW phase of the subsea cable “provides substantial social and economic benefits to the citizens of the involved countries, ends the energy isolation of Cyprus (the last isolated EU member state) and Greece’s largest island – Crete, and ensures the security of supply, while creating an alternative electricity corridor connecting the East Mediterranean to Europe.
This follows the recent discovery of major natural gas deposits in the eastern Mediterranean area, which can be used to produce electricity and exported to nearby markets or onwards to the continental European electricity network.
Responding to some criticism in Greece that the cable is delayed, the project promoter said in its announcement that it is on schedule with the commissioning dates for the first two segments of the interconnector – June 2022 for the internal line between Korakia, Crete and Attica region and December 2023 for the interconnection between Kofinou in Cyprus and Korakia, Crete.
EuroAsia Interconnector said that it is collaborating with multilateral financial institutions, including the European Investment Bank, for each of the Cyprus-Crete and Crete-Attica interconnector segments in line with their respective implementation schedules.
It added that the cable, as an EU project of common interest, is eligible to receive grants of up to 50% of the total construction cost (including the Crete-Attica link) from the Connecting Europe Facility (CEF) and additional facilities from the EIB and other EU institutions.
“Within this framework, EuroAsia Interconnector Limited has prepared the necessary application for submission to the Innovations and Networks Executive Agency (INEA) and this is one of the critical stages for the progress of the project,” the announcement said.
As regards licensing, these are at an advanced stage, with the approval of the environmental impact assessment (EIA) from Cyprus ratified on December 11, 2017, while “the relevant documentation for acquiring the environmental approval from the Greek competent authorities have been submitted, a process which is currently underway.”
The company added that it is executing the pre-works studies, such as civil works, offshore geophysical and geotechnical, FEED, etc., alongside activities critical for the infrastructure’s uniform interoperability after commissioning of the EuroAsia Interconnector electricity link, with an additional 50% funding in the form of grants from the Connecting Europe Facility already secured.
The first phase of the procurement process for selection of the manufacturers and construction of the project has been completed with the pre-selection of candidates, while meetings are currently underway in Nicosia with the successful candidates for the final invitations to tender (ITT).
“Particularly promising and indicative of the significance of the geopolitical gravity of the project is the fact that the procurement processes have drawn the interest of all major European manufacturers with proven global experience in this field, the participation of whom reinforces the multilateral efforts for successful implementation of the project,” the company concluded.
