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Eight bidders, €180 million and one second chance for Cyprus’ failed gas terminal. The government is trying again to finish Vasiliko, a project meant to help bring down electricity costs that has instead become a costly lesson in delays.
Eight companies have expressed interest in completing the stalled liquefied natural gas import terminal, with the Natural Gas Public Company, DEFA, aiming to draw up a shortlist before the end of the year and award the contract before summer 2027.
The work is expected to take approximately two years. If that timetable holds, completion would fall around 2029. That is a construction target, however, rather than a guarantee of when gas will start reaching power stations or savings will appear on electricity bills.
DEFA Chairman George Pistentis told the Cyprus News Agency that problems encountered during the previous attempt had been taken into account when drawing up the contractor-selection criteria.
For households and businesses paying the bills, the test will be whether those safeguards produce a working terminal.
The facility is intended to allow Cyprus to import natural gas for electricity generation, reducing its dependence on oil-based fuels. Any eventual savings would also depend on gas prices and the cost of getting the completed system into operation.
Interest first, full bids later
The €180 million is the estimated value of the completion contract, excluding VAT—not the total cost of the project from its beginning.
The official tender record lists AVAX, PETROJET, China Harbour Engineering Company, TERNA, ECOnnect Energy, Saipem, Baran International and Archirodon Construction (Overseas) among the applicants. The deadline for expressions of interest closed Oct. 9.
These are preliminary applications, rather than eight fully priced offers ready for a decision.
The first stage examines whether companies have the experience, technical capability, and financial strength to undertake the work. Those shortlisted will then be invited to submit detailed bids. The award is to consider both price and quality, rather than price alone.
A difficult legacy
The new competition follows the collapse of the original construction arrangement in July 2024. The project also became the subject of a European Public Prosecutor’s Office investigation into suspected procurement fraud, misuse of EU funds, and corruption. Those are matters under investigation, not findings of guilt.
There is also unfinished business beyond the construction site. The project’s floating storage and regasification vessel, Prometheas, remains in Malaysia without the certification needed for its intended role, according to recent reporting. The European Commission previously demanded repayment of almost €69 million in grants.
A new contractor would therefore be a significant step, but it would not resolve every obstacle.
The next milestones are a shortlist, detailed bids, and a signed contract. For electricity customers, the milestone that matters most is still further away: a terminal that works, delivers gas, and shows whether the promised savings can finally reach their bills.
