EuroAsia Interconnector EPC mandates due by September
The official visit of the Prime Minister of Greece Kyriakos Mitsotakis to Cyprus this week significantly boosted the implementation process of the $3.5 billion EuroAsia Interconnector – a HVDC submarine power cable project spanning Israel, Cyprus, Attica and Crete, according to sources close to the deal. EPC mandates – with GE and Siemens in the fold – are expected within Q3 2019, with financial close targeted by year-end.
The scheme comprises two parts under one tender: the construction of a subsea cable and four HVDC converter stations. Commercial operation is scheduled for September 2022.
The bulk of the financing for the project will be provided by commercial banks, with the EIB and the EBRD also expected to extend support. The European Commission via its Connecting Europe Facility (CEF) recently approved a $300 million grant for the $1.1 billion Crete-Attica section of the project, as well as a $700 million grant for the $1.5 billion Cyprus-Crete section. CEF’s involvement has ensured a low cost of funding for the connector and attractive DFI financing, says the source. In fact, cost of funding savings are thought to be around $450 million over a 25-year project lifetime.
Italian consultant CESI is advising on the cable, Elia is acting for matters on the grid, while Teshmont is advising in relation to power system engineering.
