Nicosia has expressed its satisfaction at the entry of the French investment group Meridiam as majority shareholder in the Great Sea Interconnector.
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Cyprus’ Energy Minister, Michalis Damianou, said that the participation of the French group gives new momentum to the project’s implementation and confirms the shared political will of Cyprus and Greece to advance electricity interconnection.
He added that the Republic of Cyprus is still awaiting the due diligence study of the European Investment Bank (EIB) before deciding whether it will participate in the project as a shareholder.
Damianou described Meridiam’s entry as a “vote of confidence” in the project, while noting that the government’s final decisions will be based on the findings of the European Investment Bank, which will also determine the project’s final cost.
The agreement for the entry of the French investment group Meridiam as majority shareholder in the company Great Sea Interconnector (GSI) was signed on Thursday in Athens.
According to the initial plan, the company, a subsidiary of IPTO, will take on the development of the Greece–Cyprus electricity interconnection project.
Meridiam’s participation in GSI’s share capital is expected to significantly strengthen the project, as it brings international know-how and strong investment credibility, reinforcing the company’s strategic objective: connecting Cyprus to the European electricity system via Greece and boosting the energy security and resilience of both countries.
A tripartite agreement was also signed between IPTO, GSI and Nexans. The three parties will work together from day one to accelerate the works, with priority given to completing seabed surveys.
Meridiam is a leading international investor, developer and operator of infrastructure projects, based in Paris and with a strong presence in Europe, the United States and Africa.
It specialises in strategically important public infrastructure projects, which it develops, finances, delivers and manages with a long-term investment horizon, in close cooperation with governments, regulators and public bodies.
At the same time, the process to approve financing of the project by the EIB is under way.
In parallel with this development, the Cyprus–Israel electricity interconnection is also progressing towards implementation.
IPTO, as the implementing body, has completed and will in the coming days send to the regulatory authorities of Cyprus and Israel the cost–benefit study, an important milestone for the project’s progress.
The project is expected to strengthen Greece’s role as a strategic energy hub linking the electricity systems of the Eastern Mediterranean with the European electricity market.