The entry of Meridiam into the share capital of the Great Sea Interconnector, which is responsible for the implementation of the Greece-Cyprus-Israel electrical interconnection project, is the subject of the Memorandum of Understanding (MoU) signed with the Independent Power Transmission Operator (IPTO).
Meridiam is a Paris-based global investor and asset manager specializing in the development, financing and management of long-term public infrastructure projects with a focus on maximizing the benefit to the economy, the environment and society. It is the lead investor in the NeuConnect project, the first electrical interconnection between the UK and Germany which is already under construction. Meridiam manages more than 22 billion dollars in assets, with a presence in 56 countries.
IPTO continues the rounds of contacts with interested investors, for equity participation in the project. It has already agreed with the US government fund DFC to immediately send the proposed financing terms (term sheet) of the project, following the letter of intent (LoI) it had recently addressed to the operator.
At the same time, it is in negotiations with Greek commercial banks, as well as with the Bank of Cyprus, in order to participate in its financing.
The Greece-Cyprus-Israel electrical interconnection project is one of the largest electrical interconnection projects worldwide, pioneering the laying of cables at a depth of up to 3,000 m and using innovative technology of conversion stations (High Voltage Direct Current).
The project paves the way for Cyprus to enter the single electricity market, resulting in the convergence of the island’s energy prices with those of the rest of Europe, to the benefit of consumers as well as businesses. The interconnection will bring a total social net benefit of 6 billion thanks to savings from fuel substitution, reduced emissions of gaseous pollutants, etc., an amount that far exceeds the cost of building the project.
According to the IPTO, this means that the interconnection will more than double the benefit index for society as a whole, a fact that the European Commission has already accepted with its participation in the financing of the project with 657 million euros.
