Cyprus to return €67 million in EU funding for Vasiliko LNG terminal

Energy Minister Michalis Damianos informed the House energy committee on Tuesday that Cyprus is returning €67 million in EU funding received for the Vasiliko LNG terminal project. The funds, originally provided by the European Commission's Climate, Infrastructure and Environment Executive Agency (Cinea), are being returned through deductions from other EU allocations and cash payments. This repayment follows allegations of irregularities in the 2017 tender process, which was awarded to a Chinese-led consortium, and subsequent project mismanagement. The European Public Prosecutor’s Office is currently investigating potential corruption related to the tender award. Damianos stated that neither the government nor its current consultants, Technip, can provide a specific timeline for the project's completion at this time. The government's priority is to restart the work by seeking a new contractor via a fresh tenders process. The €67 million represents the disbursed portion of a larger €101 million grant approved under the Connecting Europe Facility. Currently, the state natural gas infrastructure company, Etyfa, is assessing the status of the works using a gap analysis provided by Technip.