Vasiliko project should never have been awarded to CMC – president

The Chinese CPP-Metron Consortium Ltd (CMC) should never have been awarded the Vasiliko liquified natural gas (LNG) project President Nikos Christodoulides said on Monday, as damning statements of blame continued over the sunken deal.

In statements to a pool of reporters on the sidelines of an antiquities event, Christodoulides said the results illustrate that CMC was unable to implement the project.

But he sought to stress “the project will go ahead” as the government is ready with a plan B.  

“What I want to say with absolute certainty is that this company should never have been given this project.”

The Vasiliko LNG is part of the government’s plan to reduce the cost of electricity, “as Cyprus is one of the EU member states with the highest electricity prices”.

Commenting on the floating unit (Fsru) part of the project concerning the ship Prometheus – which has been completed but remains in Shanghai – the president specified if ongoing negotiations do not reap any results to ensure it is delivered into the Republic’s hands, “we have a plan B.”

“There is a plan in case talks do not lead to the desired result.”

Earlier in the day, Energy Minister George Papanastasiou told the state broadcaster that the latest statement by the CMC is part of its efforts to secure a better outcome in the arbitration process.

“First it blamed the Natural Gas Infrastructure Company (Etyfa), then the president, then the minister, and suddenly the subcontractor.”

On Sunday, CMC charged the project’s subcontractor VPSM of substandard performance and significant delays.

VPSM is a joint venture between Multimarine of Cyprus and Spanopoulos of Greece. CMC attributed the problems to Multimarine only.

“[CMC] is doing all this because of the arbitration,” Papanastasiou said, suggesting that the company was seeking to take advantage of press coverage to use in its favour.

The consortium announced on Thursday it was terminating the project, which the energy minister said came as no surprise.

“We have had problems with this consortium from the beginning.”

Nonetheless, Papanastasiou stressed the government is “exerting every possible effort” to ensure the project finishes in the first half of 2025.

He specified a peaceful handover had taken place for the jetty of which around 50 per cent had been completed.

For the onshore part of the terminal, around 60 per cent of the works have been carried out but that too has been smoothly handed over.

The sticking point remains to be the FSRU for which “efforts are underway to find a mutual solution”. In case this does not happen, the government has a plan B, he specified without delving into details.