The government has begun procedures to recover €67 million in EU funding granted for the Vasilikos liquefied natural gas import terminal, Energy, Commerce and Industry Minister Michalis Damianou said on Monday.
Damianou said the recovery process involves offsets against other amounts owed by the Republic of Cyprus, while part of the sum has already been returned in cash.
Priority remains completion of the project
The minister stressed that the government’s priority is for the project to be completed as originally planned and “from the point at which it was halted”, during discussion at the parliamentary committee on the item titled Progress in the implementation of the LNG import terminal at Vasilikos.
“The objective is to find a new contractor through a tender procedure so that the project can be completed,” he said.
Technip study under review
Asked by committee chair Kyriakos Hadjiyiannis whether he has in his possession the study prepared by French firm Technip, Damianou replied that it is a highly technical gap analysis currently being examined by ETYFA (Natural Gas Infrastructure Company of Cyprus), which has the necessary expertise to assess it.
Hadjiyiannis requested that the study be submitted to the House. The minister said this would be done if it is legally feasible.
Talks with the United Arab Emirates
Referring to proposals from other parties on completing the project, Damianou said discussions are taking place with the United Arab Emirates regarding the possibility of an Emirati company taking on completion of the terminal.
Asked whether there is a political decision to bypass the Technip process through an intergovernmental agreement, the minister said discussions remain at a very early stage.
No timeline yet
On the project’s completion timeline, Damianou said that even Technip’s technical experts are unable to provide firm schedules at this stage.
“The project must be completed, but I am not in a position today to give timelines,” he said, adding that specific deadlines will be announced once this becomes possible.
Recovery of EU funding
Regarding the €67 million financed under the EU grant awarded via the European Climate, Infrastructure and Environment Executive Agency (CINEA), Damianou reiterated that recovery procedures are ongoing and that offsets have already been carried out.
Explaining the process, he said two methods were used: offsets against other amounts due from the Republic of Cyprus and a cash repayment for part of the funding.
Source: CNA