Phileleftheros today publishes the complete text of the Framework of Understanding signed on 20 September 2024 by the energy ministers of Cyprus and Greece for the electrical interconnection of the two electrical networks, following government authorisation and a related decision by Cyprus’s Council of Ministers.
The agreement’s publication aims to allow readers to form a clear and valid opinion regarding what the two states committed to do and what they must implement urgently concerning funding for the implementation body (ADMIE) and promoting the electrical interconnection, attracting investors and funding.
Cyprus commits €125 million without written conditions
The framework text and Cyprus Council of Ministers decision reveal that the Republic of Cyprus undertook to pay a total of €125 million to ADMIE in five annual instalments of €25 million from 2025 to 2029, without any written preconditions for disbursing the amount linked to the project’s implementation stage.
No precondition was set for completing bathymetric surveys in the territorial waters of both countries or international waters between Cyprus and Crete. However, a basic condition existed that the €25 million must be approved by CERA as actual and justified expenses already incurred by ADMIE.
Payment timing remains flexible
The Framework of Understanding for Mutual Assumption of Commitments between the Republic of Cyprus and the Greek Government clearly shows Cyprus has committed to paying €25 million annually to ADMIE until 2029, provided this amount is justified by the Cyprus Energy Regulatory Authority (CERA). However, no specific date exists by which the annual instalment must be paid to the implementation body.
This means Cyprus must pay the €25 million for the period 1 January 2025 to 31 December 2025, but theoretically can do so at any time.
CERA approval and ministerial conditions
On 31 July 2025, CERA approved €82 million as justified recoverable expenses for the Cyprus-Crete electrical interconnection implementation body and simultaneously approved payment of €25 million to ADMIE for the January-December 2025 period.
Following CERA’s decision, Finance Minister Makis Keravnos announced his position that the €25 million would be disbursed when ADMIE implements all commitments undertaken for the electrical interconnection, referring to timetables and bathymetric surveys which, as mentioned, are not explicitly recorded in the Framework of Understanding.
The President of the Republic supported his minister last Wednesday, stating that advancing the strategically important project connects with ADMIE assuming its commitments.
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