The Crete-Cyprus-Israel cable project, valued at over €1.9 billion, is crucial for alleviating Cyprus’ energy isolation. However, it is currently entangled in geopolitical and regulatory challenges, posing a potential financial burden for consumers and the state.
Since the electric interconnection was put on hold at the end of February, delays and rising costs have become the norm. Although precise expenses are difficult to quantify, available data indicates that the project’s costs are increasing, with a significant risk that these will eventually be passed onto Greek and Cypriot consumers and state budgets.
Insiders familiar with the project’s financial aspects mention a substantial price tag. Official figures from ADMIE indicate costs exceeding €250 million, yet this does not account for compensation claims related to delays or expenses associated with seabed surveys.
Conversely, regulatory sources suggest that total payments could surpass €420 million, based on statements from ADMIE officials. This figure includes costs related to the cable provided by contractor Nexans and the €41 million spent on seabed surveys. Additionally, if the required budget is approved by the two regulatory agencies (RAAEY – RAEK), there could be €19 million in costs due to extra ship delays and €48 million for the project’s acquisition by Cypriot businessman Nassos Ktoridis.
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