The European Commission is demanding the return of €68,608,438.46, representing the European grant disbursed to date to ETYFA, the contracting party in the agreement, according to the Ministry of Energy, Commerce, and Industry regarding the liquefied natural gas (LNG) storage and regasification terminal project in Vasiliko. The Ministry notes that it will respond to the Commission within 30 days.

In an announcement, the Ministry stated that it received a letter from the European Commission detailing possible irregularities that arose during the evaluation period of the tender for the construction and operation of the LNG Storage and Regasification Terminal in Vasiliko. These issues pertain to the evaluation criteria of the consortium comprising China Petroleum Pipeline Engineering Co. Ltd., Metron Energy Applications S.A., Hudong-Zhonghua Shipbuilding (Group) Co. Limited, and Wilhelmsen Ship Management Limited, it noted.

"The letter alleges two substantial violations. The first concerns the criteria for awarding the tender to the consortium (December 2019), and the second pertains to the signing of the bilateral agreement upon the approval of an additional €25 million (June 2022)," it added.

As a result of the above issues, the European Commission, the Ministry stated, "is demanding the return of €68,608,438.46, which represents the European grant disbursed to date to ETYFA, the contracting party in the agreement." It is noted that the project, named "Cyprus Gas 2 EU," is a Project of Common Interest and was funded with a European grant of €101 million.

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The Ministry of Energy, Commerce, and Industry stated that it will respond to the European Commission's positions outlined in the letter within 30 days, as stipulated.

"The Government's priority remains the defense of the interests of the Republic of Cyprus. To this end, it supports the ongoing investigation in full cooperation with the European authorities from the outset, in accordance with the strict instructions of the President of the Republic, to ensure a thorough investigation of the facts and zero tolerance for any potential illegal actions," it said.

At the same time, the Government's commitment focuses on the effort to complete the significant energy project in Vasilikos as soon as possible, the Ministry concluded.