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Greece-Cyprus Power Interconnector Project Advances With New Funding Step

Project Advancement And Strategic Funding

The independent power transmission operator Admie has received clearance to submit a funding request to the European Investment Bank (EIB) for a comprehensive due diligence study of the Greece-Cyprus electricity interconnector (GSI) project. This decisive step enables Admie, acting as the project promoter, to further refine the techno-economic parameters of the interconnector and reassess its cost and feasibility in light of current market conditions.

High-Level Engagement And Multilateral Support

The development was confirmed during a high-profile meeting that included Cyprus Energy Minister Michael Damianos, Greek Energy Minister Stavros Papastavrou, and EU Energy Commissioner Dan Jorgensen. The presence of Deputy Minister to the President Irene Piki, Greek Deputy Minister of Environment and Energy Nikos Tsafos, along with representatives from Admie and the EIB, underscores the substantial multilateral commitment backing the project.

Revisiting Economic Parameters

Following earlier communications with the EIB by the energy ministers of Cyprus and Greece, the decision to re-evaluate both the economic and technical frameworks of the project was initially announced in November 2025 by President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis. This reassessment is designed not only to attract new investors but also to ensure that the project’s structure remains viable in the face of evolving financial and technical realities.

Implications For Energy Security And Market Integration

At its core, the Greece-Cyprus interconnector stands as a strategic infrastructure initiative, vital for bolstering energy security, enhancing grid stability, and promoting deeper integration with the European electricity system. The updated study, expected to reveal a revised cost estimate, is an essential step in positioning the project within a competitive investment landscape.

Ensuring A Resilient Energy Future

EU officials reiterated continued support for the project during the meeting, with Commissioner Jorgensen describing the interconnector as strategically important for regional energy resilience. The project is also viewed as a key step toward reducing Cyprus’ energy isolation from the European grid. Results from the due diligence study are expected to clarify future funding needs, investment risks and financing strategies ahead of the project’s next development phase.

Cyprus Government Surplus Rises To €1.61 Billion In First Nine Months Of 2026

Cyprus recorded a general government surplus of €1.61 billion in the first nine months of 2026, equal to 4.0% of gross domestic product, as revenue growth outpaced the rise in public spending. Higher receipts from income taxes, social contributions and value-added tax (VAT) drove the improvement, while lower capital expenditure helped restrain spending.

Preliminary figures released Tuesday by the Statistical Service of Cyprus show the surplus rose to €1.17 billion, or 3.0% of GDP, up from € 442.1 million in the same period of 2025.

Total government revenue increased 6.5% to €12.09 billion, while expenditure rose 2.9% to €10.48 billion.

Key Fiscal MeasureJanuary–September 2025January–September 2026
Total revenue€11,353.9 million€12,091.8 million
Total expenditure€10,186.2 million€10,482.1 million
Government surplus€1,167.6 million€1,609.7 million
Surplus as a share of GDP3.0%4.0%

Income Taxes And VAT Lead Revenue Growth

Taxes on income and wealth made the largest contribution to the increase in revenue. Receipts in this category climbed by €442.2 million, or 15.3%, to €3.34 billion, compared with €2.89 billion a year earlier.

Social contributions rose by €235 million, or 6.6%, to €3.78 billion. Taxes on production and imports increased by €251.5 million, or 7.2%, reaching €3.77 billion.

Net VAT receipts, after refunds, totalled €2.64 billion, up €293.1 million, or 12.5%, from €2.35 billion in the first nine months of 2025.

Some Revenue Streams Decline

Not all revenue categories moved higher. Capital transfers fell by €74.6 million to €96.7 million, while current transfers declined by €71.6 million, or 20.5%, to €278.2 million.

Revenue from services slipped 1.0% to €743.5 million. Interest and dividend receipts dropped by €37 million, or 28.6%, to €92.4 million.

Social Benefits And Personnel Costs Increase

On the expenditure side, social benefits rose by €199.6 million, or 4.9%, to €4.27 billion. Compensation of employees—which includes imputed social contributions and public-sector pensions—increased by €108.3 million, or 3.8%, to €2.99 billion.

Intermediate consumption, covering goods and services used in the delivery of public services, rose by €114.3 million, or 11.0%, to €1.16 billion. Interest payments increased by €8.7 million, or 2.6%, to €340.7 million. Current transfers were up €68.7 million, or 10.6%, at €714.7 million.

Lower Capital Spending Limits Expenditure Growth

The overall increase in spending was tempered by a decline in capital expenditure. Capital-account spending fell by €189.9 million, or 16.9%, to €936.2 million from €1.13 billion in the same period last year.

Investment in fixed capital declined by €94.1 million, or 12.1%, to €686.4 million. Other capital transfers fell by €95.8 million, or 27.7%, to €249.8 million. Subsidies also decreased, dropping by €13.9 million, or 15.5%, to €75.8 million.

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