The Cypriot Government has expressed its satisfaction with the agreement the French investment group Meridiam signed to become the majority shareholder in Great Sea Interconnector (GSI).
Minister of Energy, Commerce and Industry, Michalis Damianos, stressed that this development gives "huge new impetus" to the efforts to implement the project and confirms the common political will of Cyprus and Greece to promote the electrical interconnection.
Replying to journalists' questions after the first meeting of the Council of Ministers with its new composition, Damianos said that the entry of Meridiam implements the joint decision of President of the Republic Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis, which was taken during the third Cyprus-Greece Intergovernmental Summit in Athens, on November 12, 2025, namely, to find a strong investor for the project.
“The participation of an international French giant with the necessary know-how adds enormous new momentum to the efforts to implement the project, while also demonstrating the common political will of Nicosia and Athens to promote the energy interconnection,” he said.
Furthermore, he said that the President of the Republic was constantly informed by the Greek Prime Minister about the developments in the relevant consultations.
Asked whether the Republic of Cyprus should now participate as a shareholder in the GSI, the Minister replied that the Government is still awaiting the results of the due diligence study being carried out by the European Investment Bank on the economic dimension of the project.
“We are awaiting the due diligence study from the European Investment Bank itself regarding the financial part of GSI, which we expect to have in the coming months. Whether the Republic of Cyprus will participate as a shareholder is something that we will see in the process,” he said.
The IPTO, he continued, as the implementing body of the project, has already submitted a relevant request to the European Investment Bank, adding that the study is expected to be completed before the end of the year.
Asked whether Meridiam's participation contributes to reducing the geopolitical risks associated with Turkey, the Minister replied that "the participation of an international French giant certainly helps the project itself for all the obvious reasons."
Regarding the possibility of attracting more investors, the Minister said that he could not prejudge developments, noting, however, that "a project that has investment interest of this prestige, it is normal to see further investment interest." He clarified that, after the agreement, Meridiam will own 66% of the project, while IPTO (Independent Power Transmission Operator) will retain the remaining one-third.
Asked whether Meridiam’s entry means that the project’s viability is now secured, the Minister said it is a “vote of confidence”, but reiterated that the Government’s decisions will be based on the findings of the European Investment Bank.
“It is a vote of confidence, but as I have said before, we certainly have to wait for the due diligence study from the European Investment Bank, which we will rely on,” he pointed out.
The Minister added that the study will clarify the final cost of the project and how to cover any increased financing needs.
“The study will highlight exactly what the cost will be, because if it has increased beyond €1.9 billion, we will have to see how any new needs will be covered with investors,” he said.
Finally, Damianos stressed that the Government's position remains that updated data from the European Investment Bank are required before final decisions are made.
