Cyprus has a big problem with its new LNG terminal project. The project is in Vasiliko and has many difficulties. There are money problems and the EU might stop giving money. Also, there are investigations into corruption. The Energy Minister told a committee that the project is in a long crisis. There is no clear date for when it will finish. The cost is also unknown.
The main reason for these problems is bad planning. A contract was given to a Chinese group four and a half years ago. This group had no experience building such energy projects. They were the only company that bid. This group left the project in July this year. They have been gone for eighteen months. The EU is trying to get back €67 million because of mistakes.
The European Prosecutors are also looking into the terminal's purchase. They are investigating possible corruption. This makes people doubt the state companies Etyfa and Defa. Their work has not been good. People do not trust them. The argument with the Chinese group is being solved by arbitration. This makes the project's delay even longer.
The government hired Technip for €10 million to study the problems. Etyfa is looking at the study results now. This shows the project needs a better plan. The government is also talking with the United Arab Emirates about working together. However, these talks are very early. They will not help with the delays soon.
This long failure will cost a lot of money. Taxpayers will have to pay more. Losing EU money is a big problem for Cyprus. People are unhappy because important projects keep failing. This has happened before with other governments. The project might be delayed for five more years. This means Cyprus may not get LNG for a long time. The public sector needs to work better. The Vasiliko LNG terminal shows these problems.