Newsroom
Finance Minister Makis Keravnos has raised concerns about the GSI electricity interconnection project, saying there is a risk if the government provides funding. He added that some studies suggest the project may not be viable.
Speaking after the Council of Ministers approved the 2026 state budget, Keravnos said no money has been allocated to the project so far. He explained that funding it could be risky because the project’s feasibility is still uncertain.
When asked about the potential scenario in which Cyprus might have to cover the project’s costs if it stalls, the minister said these risks were already considered when preparing the budget.
On the cost of the GSI project, Keravnos said it is not clear. He also noted that, while some intergovernmental agreements have been signed, he himself has not signed any memoranda.
Regarding a GSI-related project in Kofinou, funded by a €100 million loan under the Recovery and Resilience Plan, the minister said officials are reviewing it and it appears it may be removed from the plan unless new information emerges.
Keravnos also addressed the €67 million that must be returned to the European Commission for the Vasiliko project, saying the issue has been factored into the budget and will be managed. He added that efforts are underway to offset costs with other incoming funds, emphasizing that the government is “not giving up.”
When pressed about negotiating the amount to be returned, the minister said it is “not negotiable under any circumstances.”
