Greece–Cyprus Cable: Funding at Risk as €250M Exposure Looms for ADMIE

The Greece–Cyprus electricity interconnection project is hanging by a thread, with the threat of a permanent blockage putting both its energy and financial viability at risk.

The CEO of ADMIE, Greece’s electricity transmission operator, has made it clear that no further payments will be made to French company Nexans unless the regulated revenue is secured. “Without this approval, the project is not financially viable for the investor,” sources say.

Nexans has already requested formal clarification from ADMIE, which plans to highlight that it cannot continue payments without regulatory approval. Should Nexans suspend operations, the project would be frozen, with the risk of full contract termination—but without additional penalties, as the full Notice to Proceed has not been issued.

Under the Greece–Cyprus intergovernmental agreement (CBCA), costs from an uncontrollable project halt are split equally. However, Cyprus appears to be shifting responsibility onto ADMIE, attempting to avoid its share of €125 million. Greece maintains that: “If Cyprus withdraws support for a project it annually endorses as a PCI, the responsibility is beyond our control.”

Political tension is rising: Greek Prime Minister Kyriakos Mitsotakis stated that “the project can only proceed if Cyprus demonstrates through concrete action that it wants it,” while Cypriot President Nikos Christodoulides emphasized that “ADMIE must fulfill its obligations so that we can meet ours.”

admie-kalodiadodekanisa

Viability remains the central issue. While RAEK approved the first regulatory decision, the second—dependent on Cyprus’ Ministry of Finance—blocks progress. This refusal nullifies the regulated revenue and jeopardizes investor confidence.

Nexans has already prepared a Plan B, allowing production to shift to another project. “Our exposure remains protected thanks to the upfront payment and high profit margin. We remain on Plan A but are ready with Plan B if needed,” said Nexans CEO Christopher Gillangh.

The Greek government is also considering a capital increase for ADMIE if Cyprus refuses to cover its financial obligations. A potential collapse would place the financial burden on the Greek operator and delay the strategic energy link between Greece and Cyprus.

This situation highlights that technical and political deadlocks can stall critical infrastructure, with the Cypriot decisions set to determine whether the cable proceeds or remains permanently frozen.

Source: pagenews.gr