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The decision made by the Nicos Anastasiades government in 2016 to shift away from failed attempts to introduce F.P. by constructing a terminal at Vasilikos initially offered hope for resolving an 11-year dilemma. Fast forward eight years, and the integration of F.P. for electricity generation continues to vex the Republic of Cyprus.
The inauguration celebrations for the nation's largest energy project now seem like a distant memory, overshadowed by revelations concerning the prior government's decisions. These revelations have prompted a detailed examination, with a criminal investigation on the horizon to pinpoint potential liabilities linked to ongoing construction woes.
Recent disclosures hint at possible interventions from China to break a month-long deadlock with the project consortium, comprising China Petroleum Pipeline Engineering Co Ltd, METRON S.A., Hudong-Zhonghua Shipbuilding Co. Ltd, and Wilhelmsen Ship Management Limited. Meanwhile, fresh evidence is emerging regarding the procedural intricacies leading to the project's concession to the state-owned Chinese company.
A recent letter from the Independent Cyprus Hydrocarbons and Energy Association to the Parliamentary Committee sheds light on decisions made before awarding the project. The letter suggests oversight of technocratic insights and consultant recommendations, with concerns raised about the forced withdrawal of two out of three interested parties.
Furthermore, the government's approach to the project's execution faces scrutiny, with claims that the chosen model, costing €289 million, disregarded less expensive alternatives, like the €135 million proposal presented by neighboring Egypt.
In political circles, the government is exploring diplomatic avenues to resolve the impasse with the project consortium. Energy Minister George Papanastasiou's engagements with the Chinese ambassador in Nicosia underscore efforts to seek resolution and restart construction at Vasilikos. As tensions simmer, the president of the Republic remains tight-lipped, hinting at imminent developments while leaving termination of the contract as a potential next step if negotiations falter.
[This article is a summary of the original in Greek published in Kathimerini's Sunday edition]
