Chinese-Led Consortium Withdraws from Cyprus Gas Terminal Project Over Payment Disputes

The Chinese-led consortium CPP-Metron has abandoned its contract with Cyprus to construct the island’s inaugural natural gas import terminal. The consortium accuses the Cypriot government of failing to make promised payments for work completed earlier this year.

Despite assurances from a March meeting chaired by President Nikos Christodoulides, the government allegedly did not fulfill its financial commitments. 'No contractor can be expected to work indefinitely on credit,' stated the consortium.

Initially planned for completion in 2022, work on the 289 million euro terminal commenced in July 2020. The European Union provided a 101 million euro grant. The project, intended to be a major step towards cleaner energy for Cyprus, faced multiple delays, which CPP-Metron attributes to Cyprus' Natural Gas Infrastructure Company creating obstacles and demanding extra work outside the contract.

(With inputs from agencies.)