Greece Engages Consultant to Review Costs for Undersea Power Link

Greece's Undersea Power Project Overview

ATHENS, Jan 27 (Reuters) - Greece will hire an external adviser to review costs for a stalled project to build one of the world's largest undersea power cable and link mainland Europe to Cyprus, the Greek energy minister said on Tuesday, as it seeks new investment.

Project Background

Known as the Great Sea Interconnector, the scheme, with a budget of 1.9 billion euros ($2.26 billion), in part provided by the European Union, has been delayed by geopolitical tensions in the eastern Mediterranean and as Cyprus has repeatedly sought clarifications on the total cost, viability and any liabilities for unforeseen delays.

Investor Engagement

The Greek transmission operator IPTO is building the link, with a planned capacity of 1,000 megawatts, after taking over in late 2023 from a Cyprus-based operator that had been working on the project for about a decade.

Cable Supply and Delays

Both Greece and Cyprus have reaffirmed their commitment to the cable in recent months, and Cyprus said it has approached the United Arab Emirates for possible cooperation on the project.

"The decision by Greece and Cyprus is that we move ahead, that there will be updated numbers by a house, one of the most renowned ones in the world, and with that, to attract investors either from the Middle East or the Americas," Energy Minister Stavros Papastavrou said in an interview with Greek Open television on Tuesday.

"I hope this will be a new start," he said, adding that a larger base of investors will allow for the implementation of the scheme.

French cable maker Nexans, which has won a 1.4 billion euro contract to supply the cable, said this month it was renegotiating the delivery schedule, acknowledging delays.

($1 = 0.8425 euros)

(Reporting by Angeliki Koutantou; editing by Barbara Lewis)