The Cypriot government is poised to announce its preliminary approval for participation in the ambitious Great Sea Interconnector (GSI) project, according to multiple media reports.
The project aims to connect the power grids of Israel, Cyprus, and mainland Greece via an undersea cable spanning the eastern Mediterranean.
After facing challenges and setbacks in negotiations, Cyprus and Greece seem to have reached a compromise.
Key points of the agreement include, reduced revenue for Greece's system transmission operator (IPTO or ADMIE): IPTO will now receive €125 million during the construction phase instead of the previously proposed €200 million.
The Republic of Cyprus will become a GSI shareholder by investing €100 million in share capital. The Greek side will increase its percentage of a guarantee linked to "geopolitical risks."
A formal announcement is expected following a meeting between Greek Prime Minister Kyriakos Mitsotakis and Cyprus President Nikos Christodoulides in Athens on September 19. The Cypriot cabinet must also approve the deal, which is scheduled to be discussed at their meeting on Wednesday.
The GSI project, if realized, would be a significant step towards strengthening energy cooperation in the eastern Mediterranean region and reducing dependence on fossil fuels.