Cypriot gas network in a tangled mess

The development of Cyprus’ natural gas network has become woefully entangled, as after the delays in the schedules and the appeals against the tender, sources at the Public Natural Gas Company (DEFA) emphasize that every possible effort must be made to complete all the necessary infrastructure works at Vassilikos.

An appeal by the consortium of Hill International with Hellenic Gas Transmission System Operator (DESFA) against the DEFA decision in favor of a rival consortium by KPMG and Asprofos is expected to be heard next Tuesday.

Notably, in a December 20 letter from the European Commission that makes explicit reference to the reasons for rejecting the grant of 10 million euros DEFA is entitled to receive from the European Energy Recovery Program after having requested a second extension, there is a small “window” for claiming the grant in the conclusions.

DEFA sources say claiming the grant may be possible if it proceeds immediately with the preparation of the design which is the first deliverable project in case of signing an agreement with the successful bidder.