The EU is seeking to claw back up to €100mn from the Cypriot government after a Chinese-led consortium abandoned a gas import terminal project that is now being investigated for corruption.
In 2018 the Cypriot government awarded the €542mn contract for the construction of the Vasilikos liquefied natural gas terminal to a consortium comprising China Petroleum Pipeline (CPP), Hudong-Zhonghua Shipbuilding, Norway’s Wilhelmsen Ship Management and the UK’s Metron.
The project, designed to reduce the country’s reliance on imported oil, was originally due to be completed by 2019. However, it ran into delays and the deadline was first extended to 2022 and then beyond. The deal finally fell apart on July 18 amid accusations that the consortium was not meeting its contractual obligations.