The bid to link the power grids of Greece and Cyprus received a new boost Wednesday with French investment group Meridiam joining the Great Sea Interconnector project as a majority stakeholder, in an agreement with a strong financial and geopolitical footprint.
The deal signed at the Greek prime minister’s Athens office, in the presence of Kyriakos Mitsotakis, opens a new chapter in one of the biggest and most complex energy projects in the eastern Mediterranean Sea.
Mitsotakis hailed the agreement as “an important step forward” for the GSI, which he called “a project of strategic importance for Greece and Cyprus but also for Europe as a whole.”
“It will help essentially end Cyprus ‘s energy isolation,” Mitsotakis said.
Meridiam is bringing not only capital but also its substantial experience in major international projects, while its presence substantially boosts the French interest in the GSI project, in which another French company, Nexans, is already involved.
Greece’s ADMIE, GSI and Nexans will also sign a three-party deal to carry out surveys of the seabed, opening the way for one of the most crucial – and geopolitically sensitive – stages of the project.
The energy link is expected to carry a price tag of €1.9 billion, €657 million of which will be provided by the European Union. The remaining cost must be covered by equity, borrowing and the regulated cost recovery model.
The overall price will be shared by Cyprus and Greece, with the former being allocated a 63% share.
The agreement on the seabed surveys touches on the trickiest stage of the project. Extending the surveys into international waters has in the past provoked reactions from Turkey, due to the different positions of Athens and Ankara on eastern Mediterranean marine zones.
In its next stage, the project will no longer just concern Greece and Cyprus, but will be linked even more directly with French financial interests.
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