The European
Investment Bank provides EUR 130 million to the Electricity Authority of Cyprus
for a new production unit to enhance electricity supply in
Cyprus
.
The finance
documentation was signed today in a public ceremony at the Ministry of Finance
in
Nicosia
in the presence of Mr. Kikis Kazamias, Cypriot Minister of Finance. The finance contract was signed for the EIB
by Vice-President Plutarchos Sakellaris and for the Electricity Authority of
Cyprus by the President of the Board of Directors, Mr. Harris Thrassou.
EIB Vice-President Plutarchos Sakellaris, whose responsibilities
include EIB’s lending activities in
Cyprus
as
well as energy issues, said on the occasion in
Nicosia
today: “In
2011 our aggregate lending in
Cyprus
totalled EUR 180 million. It was for
roads and education. I am delighted to
sign today a vital finance contract for energy production at the Vassilikos
power plant in
Cyprus
. This is our sixth loan with
the Electricity Authority of Cyprus. Through
our long-lasting and good cooperation we were able to provide significant
support to the generation, transmission and distribution of electricity in
Cyprus
. This loan comes in good time to cater to the
urgent need for energy production in the country after the explosion at the
adjacent Mari Naval Military Base last July.”
The EIB has
supported a number of energy projects in
Cyprus
,
mostly in cooperation with the Electricity Authority of Cyprus. This includes
loans totaling EUR 330 million for the upgrading of the electricity
transmission and distribution network, and EUR 30 million for a new internal
combustion engine power plant at the Dekeleia power station in the district of
Larnaca in
Cyprus
. A further EUR 200 million has gone to the Vassilikos electricity
power plant, one of the largest investments undertaken in
Cyprus
. Both
electricity production plants can be retrofitted to natural gas, once this
becomes available on
Cyprus
. Electricity demand in Cyprus is rising and plants of this type provide
a rapid response to load changes, which makes them suitable for generation of
electricity during peak demand This will help meet demand changes in particular
during the summer months, when cooling and electricity needs are highest.