AKEL ON NEW MEMORANDUM PROVISION ON ENERGY

 

Statement by Neoklis Sylikiotis, Member of the Political Bureau of the C.C. of AKEL

 

As we have stated over the past few days too, the updated Memorandum represents in reality a new agreement between the Government and the Troika, given that the Government is proceeding to make additional concessions to the Troika on important issues.

 

Unfortunately, our bleakest predictions regarding the field of energy and management of natural gas are being confirmed.

 

AKEL had stressed that with the signing of the Memorandum the government had wrongly accepted the incorporation of a provision specifying that all the plans regarding Natural Gas, as well as the plans for the infrastructures (terminal liquefaction, pipes etc.), are subject to the approval of the Troika.

 

By incorporating the new provision that the investments for the Terminal must be included in the fiscal frameworks and commitments in relation to the 2016 budget, they create the preconditions for the transfer of the ownership of the infrastructures from the state to private interests – although they are aware that the management of the infrastructures and participation of the state through the state company does not burden the budget and the public debt in the slightest. Besides it is not a coincidence that at the same time the government accepts the incorporation of this new provision in the Memorandum, the international consultants hired by the Government proposed that the development and utilisation of the Terminal should be done solely by private investors.

 

Could it be in the end that the government’s delay and inaction to move ahead with the procedures for the construction of the Terminal and other infrastructure work fall within the above context?

 

These developments confirm the warnings AKEL had issued that commitments made to the Troika and the Government’s machinations lead to significant delays in the implementation of plans to exploit the natural gas.

 

Already, 2019, which represented a milestone for the transportation of natural gas to the global markets, has been extended to 2021, perhaps even later.

 

At the same time we reiterate that the delay in the procedure for the implementation of the work project at a time of economic crisis slows down the path of recovery of the Cyprus economy.

 

The current conditions more than ever make the collective handling of this issue imperative that will give the possibility to the Cyprus economy and society to exit the crisis as soon as possible.

 

Natural gas is an important and hopeful perspective for Cyprus and our people.

 

To fulfil the goal for the speedy exploitation of natural gas and convert our country into a major regional energy hub in the Eastern Mediterranean determination, a prudent and consensual handling of the whole issue is needed.