Nexans warns with work suspension for GSI with a letter to ADMIE – The company declares that it intends to claim any right it has for delays or additional costs in accordance with the terms of the contract
Letter to the Minister of Energy, Trade and Industry Giorgos Papanastasiou and to the Cyprus Energy Regulatory Authority (CERA), sent on August 28 by the Independent Electricity Transmission Operator (ADMIE), with which it informs that the company Nexans states in its letter that it will proceed on September 2, to complete suspension of work for the construction of the cable of the electrical interconnection Greece – Cyprus (Great Sea Interconnector).
In his letter, which was obtained by the Cyprus News Agency, ADMIE refers to “huge efforts“which he paid all the previous period and in his effort to “convince NEXANS not to suspend operations, due to the overturning of the regulatory framework with the decision no. 215/02.07.2024 of CERA, which makes the Project economically unsustainable for the Implementing Agency and any prospective investor, as well as the continued non-completion of the regulatory framework' (recognition of revenue and determination of the reasonable return (Wacc) of the project which is not arbitrarily defined but based on the revenue methodology and takes into account the actual financial data, e.g. borrowing costs for the 1st regulatory period and revision of the joint cost sharing decision (CBCA) to cover the financing gap of 100 million euros and cover the geopolitical risk in a manner similar to that of the Greek Regulatory Authority ).
ADMIE communicates its letter to the Greek Minister of Environment and Energy, Th. Skylakakis, to the Greek Deputy Minister of Environment and Energy, A. Sdoukou, to the Director General of the European Commission Ditte Juul Jørgensen, to the Director, to the Director for the Green Transition and the Integration of Energy Systems Catharina Sikow-Magny and to the Vice-President of RAAE and Head of the Energy Department, D. Fourlaris.
In its letter, which was obtained by KYPE, the company Nexans Norway AS warns of the suspension of work on the project of the Great Sea Interconnector, concerning the Euroasia Link 2 cable connection, due to delays attributed to pending regulatory issues.
The notice, which was sent to the Independent Electricity Transmission Operator (ITO), states that the company will cease operations from September 2, 2024, if the required Full Notice to Proceed is not issued by August 31 2024.
According to the letter signed by Nexans Project Manager and Representative, Rune-Andre Stoten, the Full Commencement Notice has not yet been issued due to of pending regulatory issues by the Cypriot Regulatory Authority, despite the efforts of the contractor, the European Union, Governments and Regulatory Authorities. Nexans points out that although it understands the situation, the result remains the same.
Furthermore, the company states that it intends to assert any rights it may have for delays or additional costs in accordance with the terms of the contract. It is also noted that all additional costs arising from the suspension and resumption of work and extension of project schedules will be borne exclusively by ADMIE.
