After a four-hour meeting between Energy Minister George Papanastasiou and a delegation from the Chinese CPP, an agreement was reached yesterday, and the contractor’s side assured that they would immediately return to the construction site in Vasilikos to continue and complete the works for the construction of the jetty and other facilities.
According to information from Phileleftheros, the company has interrupted or intends to interrupt its collaboration with a Cypriot company that undertook specific tasks related to the jetty.
These tasks will continue with personnel that CPP will bring from China to Cyprus.
Efforts will be made to expedite the issuance of visas for approximately 120 Chinese technicians for their fastest possible arrival.
Yesterday’s meeting did not address economic differences related to the contractual obligations of the two parties, which will be examined by the Arbitration Court in London.
Information suggests that the atmosphere at the meeting was generally positive, although the sharp to aggressive announcement issued on Thursday by the CPP – Metron (CMC) consortium was seen as an attempt by the contractor to stretch the tension rope.
However, the Chinese delegation appeared conciliatory and willing to discuss all aspects of the disagreements that had led to the suspension of work recently.
Unofficial information from sources not present at yesterday’s meeting suggests that significant developments had begun since Thursday, as CPP had initiated – and communicated to the stakeholders, according to another source – the termination of its collaboration with the Cypriot subcontractor, most likely due to financial differences.
Other information, however, suggests that the subcontractor also has serious financial claims against the Chinese company for services provided in the past.
In light of the termination, according to our information, of CPP’s collaboration with the Cypriot subcontractor, the Chinese delegation informed the Energy Minister and his associates yesterday that they would themselves advance the project in Vasilikos, utilizing personnel they intend to bring from China.
The Minister reportedly committed to collaborate with his colleagues in the government to expedite the issuance of visas for approximately 120 CPP employees.
Given these circumstances, the resumption of substantial work in Vasilikos in the coming days appears difficult, as the arrival of Chinese technicians and possibly necessary equipment must be awaited.
Moreover, the complete withdrawal of CPP’s former collaborators and their equipment from the construction site does not seem to be an easy or quick process.
The Energy Minister and CPP also agreed yesterday to maintain continuous communication to avoid further problems in their relationship.
The establishment of a working group from the Ministry of Energy, which will have direct cooperation with CPP, seems quite probable. At this stage, the involvement of ETYFA (Natural Gas Infrastructure Company) in communication with the Chinese company is expected to be more discreet until their relationship is fully restored and the projects can proceed smoothly.
What the government side will soon expect is to be informed by the contractor about a new project delivery schedule, as the one set for July 2024 can no longer be met.
Construction in Vasilikos is at 45% of its entirety, according to the Government, while the construction of the FSRU floating unit is almost at 100%.
