President assures there will be no cover-up in Vasiliko contract failure

President Nikos Christodoulides said on Sunday that there would be no cover-up in the ongoing investigations related to the Vasiliko LNG case.

The president was replying to journalists’ questions after a memorial service for Archbishop Makarios III.

When asked about the government’s intentions concerning the failed contract for the liquefied natural gas infrastructure in Vasiliko, Christodoulides said that nothing would be concealed regarding the issue.

“From the outset, we have been cooperating with the European Public Prosecutor’s Office, and I want to state publicly today: nothing will be hidden regarding this issue,” he said.

The Chinese-led construction firm CPP-Metron Consortium Ltd (CMC), terminated the contract with the Republic of Cyprus following a series of delays in the project’s delivery and financial demands for additional funding from the government, beyond what was stipulated in the contract.

The European Public Prosecutor’s Office is investigating the contract, and the European Commission has demanded from Cyprus the reimbursement of €68.6 million, part of a €101 million European subsidy paid to Etyfa, the project’s contracting party, due to potential irregularities. These include alleged violations during the tender evaluation for the LNG Terminal and issues related to an additional €25 million agreement signed in June 2022.

The president further clarified that there was absolutely no effort, and there would be none, to cover up for anyone.

“I take personal responsibility for this. No one is above the law and the interests of the Republic of Cyprus. I want to be clear and unequivocal on this matter,” he said.

Responding to another question, President Christodoulides pointed out that those found responsible for any wrongdoing, whether for contracts or other issues, would be brought to justice based on the findings of the European Public Prosecutor’s investigation, which could not be contested.

“No cover-up for anyone whatsoever. This is a clear message to the Cypriot people,” he concluded.

In 2018, Cyprus awarded a €542 million contract to a consortium including China Petroleum Pipeline (CPP), Hudong-Zhonghua Shipbuilding, Norway’s Wilhelmsen Ship Management, and the UK’s Metron to build the Vasiliko LNG terminal. The project was initially set for completion in 2019 but experienced delays, extending the deadline to 2022 and beyond. The agreement fell apart on July 18, 2024. CPP has taken the case to international arbitration in London, seeking €200 million from Cyprus.