The government of the Republic of Cyprus is currently deliberating on the crucial matter of the sustainability of the EuroAsia Interconnector project. This ambitious endeavor aims to establish an electric interconnection between Cyprus and Greece, and it has garnered the attention of the Minister of Energy, George Papanastasiou, who recently addressed the issue in an interview with the Cyprus News Agency (CNA).

During his conversation with CNA, Papanastasiou confirmed the accuracy of an article published in "Fileleftheros," which reported discussions on the project with the Minister of Finance, Makis Keravnos, over the past weekend.

The minister revealed that they conducted a comprehensive evaluation of several key aspects, including the current status of the project, the support received from the European Commission, the capabilities of the implementing entity, and the potential involvement of the state in providing assistance, should it be required.

Papanastasiou emphasized that while their discussion with the Minister of Finance covered significant ground, no decision has been reached yet. The ultimate decision-making authority rests with the President of the Republic, as it is not solely an economic or energy-related matter.

Regarding the potential scenarios, Papanastasiou highlighted that all options are under consideration, including state participation, financial support, or the possibility of no involvement whatsoever.

"At this stage, we have put all the cards on the table. We are carefully examining what this project means for Cyprus, evaluating its sustainability and strategic significance," he explained. "If we decide to support it, it means the project meets the necessary sustainability criteria. However, if it fails to pass this stage, it will not be included among the projects in which the state desires to participate."

While Papanastasiou refrained from categorizing the entire project as being at risk, he did acknowledge that it has encountered significant delays. These delays have provoked concerns from the European Union, which has allocated a substantial amount of funding to the initiative.

It is worth noting that the project's progress was previously discussed during a meeting at the Presidential Palace, chaired by the President of the Republic, earlier in July.

The Cyprus-Greece-Israel electricity interconnection is considered of utmost importance for Cyprus' energy plans. It is poised to alleviate the country's energy isolation and provide support for its green transition, enabling Cyprus to fulfill its commitments to the European Union.

Designated as a project of common interest (PCI) by the EU, it has already received €657 million in funding from the "Connecting Europe Facility" mechanism. An additional €100 million has been secured from the Recovery and Resilience Facility (RRF). The project entails the construction of a 1,200 km underwater cable that will connect Israel to Cyprus and Greece via Crete. The first phase, estimated at a value of €1.57 billion, focuses on the 

Cyprus-Greece connection, while the second phase centers on the Cyprus-Israel connection.

However, due to unforeseen delays and rising construction material costs resulting from the conflict in Ukraine, the total implementation cost of the project has increased to approximately €1.9 billion.

The examination of the EuroAsia Interconnector project's sustainability and strategic significance underpins the government's commitment to thoroughly evaluate its potential benefits for Cyprus. As the deliberations continue, the future of this ambitious project hangs in the balance, with crucial decisions yet to be made.