The Independent Power Transmission Operator of Greece (ADMIE) plans to establish a Special Purpose Vehicle (SPV) to facilitate potential investments by the Republic of Cyprus and other investors in the EuroAsia Interconnector project. This initiative was discussed in a recent meeting between Cyprus’s Minister of Energy, Commerce, and Industry, Giorgos Papanastasiou, and Greece’s Deputy Minister of Environment and Energy, Alexandra Sdoukou.

The meeting, which took place last Friday during the Cyprus-Greece Intergovernmental Summit, also included Manos Manousakis, CEO of ADMIE. Discussions focused on coordinating the energy ministries of Cyprus and Greece, along with regulatory authorities and system operators, to accelerate the implementation of the electricity interconnection project between Greece, Cyprus, and Israel.

Papanastasiou and Sdoukou also reviewed necessary actions for finalizing the regulatory framework to smoothly advance the project. Additionally, they were informed about ADMIE’s intention to form an SPV for the Greece-Cyprus-Israel interconnection, aiding the entry of Cyprus and other investors into the project. Manousakis updated the ministers on ongoing discussions and expressed interest from various entities.

Furthermore, technical issues related to the project’s funding from the European “Connecting Europe Facility” (CEF) with an allocation of €657 million were discussed. The focus was on expediting the disbursement of advance payments for the project within the current year, in cooperation with the European Union's CINEA (European Climate, Infrastructure, and Environment Executive Agency).

A Special Purpose Vehicle (SPV) is a subsidiary created by a parent company for various financial reasons, including isolating financial risk. Essentially, an SPV is a separate legal entity with its own assets and liabilities, distinct from those of the parent company. It's commonly used in complex financial transactions such as securitization, where it helps in turning illiquid assets into liquid securities. SPVs can also be employed for risk management, asset transfer, and property sale. Their structure makes them a popular choice for handling specific assets or activities, providing legal protection and financial separation from the parent entity.