The ongoing dispute over the Cyprus-Greece power interconnector project has reached a critical juncture as the French contractor ADΜIE finds itself at the center of a contractual storm. While ADΜIE and local regulatory authorities have attributed the project’s delays to systemic challenges, reliable sources indicate that Nexans—the company responsible for manufacturing and laying the cable—now holds ADΜIE solely accountable for breaching fundamental contract terms, including critical timeline milestones.
Contractual Breaches and Formal Warnings
According to industry reports, Nexans has formally notified ADΜIE, following the recent agreement between Mitsotakis and Christodoulidis, that failing to issue the Full Notice to Proceed—the final approval required for the commencement of all project phases—by the first quarter of 2026 will release the contractor from all schedule-related obligations. Originally scheduled for August 2024, this delay not only invalidates the contractual timeframes but also nullifies penalty clauses that would otherwise compensate for project delays.
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Escalating Financial Liabilities
Further compounding the situation, Nexans has communicated in writing that, given the accumulated delays and halted cable payments since April 2025, ADΜIE could soon face liabilities amounting to approximately €250 million if the project is terminated prematurely by ADΜIE. This figure is likely to rise when combined with other overdue amounts and potential claims related to raw material orders or subsequent cancellations on similar electric cable projects.
Operational Progress and Critical Dependencies
Despite the mounting legal tensions, Nexans has already produced roughly 300 kilometers of cable conforming to diverse technical standards, leveraging its manufacturing facilities in Japan and Norway. However, the French firm’s willingness to extend deadline relaxation—with the latest extension expiring in December 2025—is contingent upon the imminent issuance of the Full Notice to Proceed. Failure to secure this approval by March 2026 may prompt Nexans to invoke contractual penalty clauses, effectively releasing them from further obligations.
Regional Implications and Future Steps
If Nexans’ conditions are not met, ADΜIE is poised to initiate compensation claims against regulatory authorities in both Cyprus and Greece, potentially implicating national governments and electricity consumers in the financial fallout. ADΜIE has already disbursed approximately €300 million to Nexans—funds which Nexans considers non-refundable. When combined with the aforementioned penalties, the overall cost of this venture, launched in the summer of 2023, could soar to nearly €550 million, excluding additional claims that might materialize.
Rescheduling Efforts and Strategic Impacts
On January 6, 2026, Nexans acknowledged the project’s delays in an official announcement, indicating that a reprogramming of activities was underway with its client. The revised delivery date, initially set for the close of 2029, may now be postponed by as much as one year—provided that no further disruptions occur, such as geopolitical instabilities in international waters between Crete and Cyprus. The contractor remains clear: should ADΜIE issue the Full Notice to Proceed within the stipulated timeframe, the delay in project completion will be limited to one year.
This unfolding scenario underscores not only the operational and financial challenges inherent in large-scale infrastructure projects but also the critical importance of timely decision-making at the governmental level. With both Nexans and ADΜIE now firmly entrenched in a high-stakes legal and financial battle, the resolution of this dispute will have far-reaching implications for regional energy policy and investor confidence in interstate infrastructure initiatives.
