Alpha News

Vasilikos Terminal: An Anatomy of a Scandal

Published January 25, 2026, 06:16

The Vasilikos natural gas terminal, a flagship project of the previous government aimed at reducing energy costs, has become a scandal due to its failure to complete and massive budget overruns. Seven years after the initial promise, the project remains unfinished, while costs have soared to hundreds of millions of euros. The process of awarding and managing the project, from the tender to the present day, is being investigated by the European Public Prosecutor's Office, indicating serious issues of corruption and lack of transparency. The chronological evolution of the project demonstrates a series of delays and problematic decisions. Funding began in 2018 with loans from the European Bank for Reconstruction and Development and the European Investment Bank, reaching €331 million. The tender was awarded to a Chinese consortium (CPP) in 2019, with a seemingly advantageous offer, but ultimately led to further problems. Construction began in 2020, but progress was extremely slow. By February 2022, the project was only 4% complete, while the consortium had already requested an extension of the deadline. The situation worsened in January 2024, when the Chinese consortium filed a lawsuit against the Republic of Cyprus, demanding compensation for additional expenses due to technical problems and delays. This scandal raises serious questions about the management of public works in Cyprus and the need for greater transparency and accountability. The failure of the Vasilikos terminal not only wastes taxpayers' money but also undermines the effort for energy independence and reducing energy costs for citizens.