Apostolos Tomaras
The presence of Energy Minister Giorgos Papanastasiou at this year’s Green Agenda forum, and what he revealed about the de facto framework governing major public contracts, understandably caused a stir. But it also reinforced a long-standing and widely shared perception about how public tenders for critical infrastructure projects are handled in Cyprus.
The former energy minister’s public references to political and party interference in the awarding of major energy projects are, according to him, the exception rather than the rule. Yet they reflect what many believe happens behind closed doors in some of the country’s biggest investment programs. Describing Cyprus’ energy reality, Papanastasiou said bluntly that what the country is experiencing in the energy sector is the result of political and party interventions, which have left major projects such as natural gas infrastructure and the electricity interconnector stuck in limbo.
What the former minister did not spell out directly, but what can be reasonably inferred, is which projects were affected and by whom. His remarks clearly point toward powerful political and party structures with the ability to influence decisions in favor of third parties, or sometimes their own interests. Looking back at the history of major state projects, many argue his comments are not vague political impressions but reflect real events, the full documentation of which would require both political will and thorough investigation by the executive and legislative branches.
The “who’s who” of influence
In political circles, it is widely understood that influence is rarely exerted in public. It happens behind closed doors, without records or digital traces that could expose how decisions involving contracts worth millions are shaped. Former ministers have described to K how influence is often disguised as "assistance" and who benefits from it.
In some cases, these interventions never leave the room where they occur. In others, they end up in court. One example often cited is the waste management scandal, where, beyond the politicians who were convicted, testimony also referred to “contributions” made by interested companies to political parties in exchange for securing contracts.
In such cases, influence appears to have come either directly through party structures seeking to serve specific interests or through financial contributions flowing back into party funds. Alongside party agendas, there is also what many describe as a personal agenda, either for direct financial gain or a mix of political and personal benefit.
One such example often discussed in political circles involves long-running efforts to bring natural gas to Cyprus, as well as the construction of the LNG terminal at Vasilikos, where allegations of possible illegal political funding are currently under investigation by the European Public Prosecutor’s Office.
Papanastasiou’s remarks at Green Agenda, referring to interference in major public works, essentially confirm what many in society already suspect.
Party influence and political financing
Although attempts to influence major state contracts often remain in the shadows, party mechanisms are frequently accused of using state-linked projects to indirectly support their finances through donations.
One case that reached the courts and drew significant attention involved a dispute between former president Demetris Christofias and contractor Miltiades Neophytou, widely referred to as a “national contractor” during the AKEL government years. In court, Neophytou alleged that businessman Andreas Vgenopoulos had contributed €2 million to Christofias’ election campaign—an allegation denied by both Christofias and his witnesses.
Another case often referenced relates to waste management contracts. During related trials following revelations about landfill scandals, testimony suggested that “contributions to political parties were a prerequisite for securing contracts.”
A similar pattern has been alleged in relation to early attempts to introduce natural gas between 2006 and 2010. Just before final agreements were expected to be signed between the Electricity Authority (EAC), DEFA and companies such as KOGAS and Shell, political reactions suddenly intensified. By early 2011, the process collapsed.
At the time, DISY strongly opposed the deal, warning that Cyprus risked locking itself into a long-term contract while offshore exploration in the Exclusive Economic Zone was ongoing and expectations of domestic hydrocarbon reserves were rising.
Former head of the Cyprus Energy Regulatory Authority (CERA), Giorgos Siammis, told K in a past interview (08/2026) that the 2009 effort to secure natural gas supplies was, in his view, undermined and effectively torpedoed by a political leader—whom he did not name—and a technocrat in the National Council. According to him, the collapse of that process cost Cyprus billions of euros. It is also noted that when DISY later came to power, the Anastasiades government did not pursue the party’s earlier position on the matter.
Political interference and major projects
The Vasilikos LNG terminal is another case often cited in discussions about political interference in the selection of contractors, with financial and political implications now under scrutiny by the European Public Prosecutor’s Office.
Behind the scenes, there is a strong belief that the current framework governing public procurement actively allows space for political and economic interference. Some also argue that gaps in contract terms are not accidental, enabling contractors in some cases to later demand additional payments or negotiate off-the-record arrangements.
Political interference is also alleged in other major projects, including the Paphos–Polis Chrysochous road, awarded to Greek construction company Intrakat before eventually collapsing. In political circles, it is suggested that the selection process was influenced at a political level, partly due to the company’s links with Greece’s political establishment.
A similar logic is said to have applied in the Vasilikos terminal project, which some claim was also used to strengthen bilateral relations with China.
Calls for a national energy policy
Papanastasiou’s proposal at Green Agenda for a national energy policy modelled on the National Council could, according to him, help limit political interference in strategic decisions.
He stressed that energy policy should be driven by technocrats rather than political parties. “Political forces should not interfere in energy matters,” he said. “The outcomes we see today are the result of political interference.”
His proposal is based on strengthening the role of technical experts in decision-making in order to reduce clientelist relationships between political parties and business interests. Decisions, he argued, should be based on evidence and rational planning rather than political considerations—practices which, according to him, have repeatedly led to corruption risks, shadow dealings, and significant social cost.
It is also worth noting that, according to estimates cited in relation to the Vasilikos terminal alone, the financial burden of delays and mismanagement in Cyprus’ energy planning has reached €624 million, excluding annual operating costs, which some experts estimate at around €500 million.
