AKEL challenges Cyprus finance minister on Great Sea Interconnector viability
"AKEL leader Stefanos Stefanou has formally demanded transparency from Finance Minister Makis Keravnos regarding the financial viability of the €3.9 billion Great Sea Interconnector, questioning how French firm Meridiam's recent acquisition of a 66% stake impacts Cyprus's planned €100 million equity investment and consumer commitments given the ministry's previous conclusions that the project was unviable."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
The leader of Cyprus' main opposition party, Stefanos Stefanou, has directly questioned Finance Minister Makis Keravnos regarding the financial viability of the Great Sea Interconnector (GSI), the island's most expensive energy project. Stefanou's inquiry, detailed in a letter published on Thursday, September 3, 2026, seeks clarity on how the recent acquisition of a majority stake by a French asset management firm impacts Cyprus’ plans and financial commitments.
The letter comes at a pivotal moment for the GSI. Last month, French investment firm Meridiam secured a 66 percent stake in the Greek holding company overseeing the interconnector, while Greece’s independent power transmission operator, Admie, retained 34 percent. This significant ownership shift has prompted AKEL to demand transparency and answers from the Cypriot government, which has heavily supported the project both politically and financially.
“Naturally, the entry of a new investor is an important development,” Stefanou stated in his letter. “Nonetheless, we feel that on its own it does not answer critical questions regarding the total cost and viability of the project, its financing, or the cost to Cyprus and consumers.”
The AKEL general secretary pressed Minister Keravnos on several key points. He asked whether the finance ministry possesses the full details of the agreement between Admie and Meridiam, who now owns the project's assets, who will lead its construction and operation, and if the government is considering Cypriot participation in the GSI’s shareholding structure under the new ownership arrangement. Stefanou also inquired whether the new agreement alters any existing financial or other commitments made by Cyprus.
The Great Sea Interconnector is envisioned as an approximately 1,200-kilometre subsea electricity cable designed to link the power grids of Cyprus, Crete, and mainland Greece, with an estimated capacity of 1,000 megawatts. Project cost projections have widely ranged around €3.9 billion (approximately KES 566 billion), with the European Union’s Connecting Europe Facility already committing €657 million in grant funding. Until August, the project company was wholly owned by Admie, making Meridiam's majority entry a significant structural change.
Stefanou's most poignant argument referenced previous statements made by Minister Keravnos. The AKEL leader reminded the minister that only a year prior, he had informed the media that two independent studies concluded the project was not viable. This earlier admission, from the same ministry now contemplating further state investment, forms the core of AKEL’s demand for clarification on what factors have changed to alter the government’s assessment.
Cyprus is currently considering an equity investment of €100 million (about KES 14.5 billion) in the interconnector. According to the finance ministry, a final investment decision will only be made after comprehensive due diligence and a cost-benefit analysis are completed. Beyond this potential equity stake, Cyprus has already committed to a support package for consumers during the construction phase, totaling €125 million (about KES 18.1 billion), dispersed as €25 million annually over five years.
The GSI holds importance beyond Cyprus' borders, recognized as a flagship European Union Project of Common Interest. It aims to end Cyprus’ energy isolation by integrating its grid into the wider European network, an initiative that Brussels has supported with substantial grants to bolster the EU’s single electricity market and enhance post-Ukraine energy security.
AKEL’s letter highlights crucial questions about transparency in large EU-funded cross-border infrastructure projects: clarifying asset ownership, the distribution of construction risks, and the accountability for potential cost overruns. Similar subsea interconnector projects across Europe have faced rising budgets and shifting ownership, making Nicosia's response a closely watched development for investors and policymakers throughout the bloc.
As of publication, the finance ministry has not yet publicly responded to Stefanou’s letter. Consequently, the final investment decision on Cyprus’ €100 million stake remains on hold, balancing the government's past doubts with the new majority owner’s insistence on the cable's strategic value.