vasiliko lng — vasiliko lng — The government of Cyprus is currently exploring legal options regarding a demand from the European Commission for the return of €67 million related to the Vasiliko liquefied natural gas (LNG) terminal project, which was never completed. Energy Minister George Papanastasiou confirmed on Friday that the Law Office of the Republic has sought advice from British legal experts as they assess the situation.
The European Commission has set a deadline for Cyprus to repay the funds, which were initially granted for the construction of the LNG terminal. The government must respond by November, and Papanastasiou indicated that all options, including an appeal, remain on the table while they await the legal counsel.
The dispute appears to stem from a complaint regarding the awarding of the tender for the project to a Chinese consortium. Papanastasiou explained that the Commission’s climate, infrastructure and environment executive agency (Cinea) was alerted to the issue by the European Court of Auditors, which based its findings on information from Cyprus’ Audit Service.
In its report, the Court of Auditors asserted that the contract should not have been awarded to the consortium, prompting the demand for the funds’ return. “When we received the first letter last spring, we responded with a detailed and lengthy explanation of our position,” Papanastasiou stated. However, the energy ministry’s permanent secretary received a reply indicating that the previous correspondence did not address the concerns raised, and the decision to reclaim the money was deemed final.
Thus far, Cyprus has received a total of €73 million from the EU, part of a larger budgeted grant of €101 million for the Vasiliko project. Papanastasiou noted that the remaining funds, which the Commission is not seeking to recover, likely pertain to studies conducted prior to the awarding of the contract.
