Construction Begins for Greece-Cyprus-Israel Interconnection Project as Milestone Achieved

The initial phase of constructing the cable section for the Greece-Cyprus-Israel interconnection, known as the Crete-Cyprus interconnection, has commenced with Nexans receiving an order from Greece's Independent Power Transmission Operator (IPTO).

This order instructs Nexans to reserve the necessary production slot for cables and begin relevant procedures.

The order from IPTO marks the first milestone in the contract signed in July, signifying the start of work on the flagship project before the end of 2023. Shortly after this contract signing, IPTO took on the role of project promoter through its special-purpose company, Great Sea Interconnector.

IPTO's eagerness to expedite the project's implementation is evident in this latest development, which follows the successful completion of the Asset Purchase Agreement with the previous project promoter. Additionally, Nexans and Siemens transferred their contracts to IPTO, while the grant agreement for 657 million euros from the European Union's European Climate, Environment and Infrastructure Executive Agency (CINEA) was also transferred.

CINEA subsequently disbursed an advance payment of 55 million euros (First Notice to Proceed) to Nexans, indicating that construction work on the cable can commence. The first installment payment to Nexans has now been completed.

Simultaneously, Siemens is intensifying its efforts on the FID study for the Cyprus Conversion Station, tasked with determining the equipment specifications for the project.

Great Sea Interconnection's equity is also being expanded through ongoing negotiations with new investors. IPTO has already signed agreements with the Israeli fund Aluma, as well as a memorandum of understanding with the Cyprus Ministry of Energy, Commerce and Industry, and the Abu Dhabi National Energy Company (Taqa) Fund from the United Arab Emirates. Furthermore, investment funds from the United States and other countries have expressed interest in participating in the project.

IPTO is actively engaged in discussions with the European Investment Bank and commercial banks regarding the borrowing aspect of the project. Additionally, IPTO maintains continuous communication with regulatory authorities in Cyprus and Israel as the project progresses rapidly in terms of construction, funding, and regulatory matters.