Cyprus may need to raise extra funds for the construction of a huge European power cable

If an upcoming cost assessment confirms that the project's costs have ballooned, then it may be necessary to raise additional funds in order to continue. This is what Cyprus' energy ministry told? ?on Tuesday.

The Great Sea Interconnector project is a 1.9 billion euro ($2.2 billion) project that will build a transmission line linking Greece with Cyprus, and then Israel under the Mediterranean Sea.

The project has been on hold for many years due to concerns about its cost, and the geopolitical tensions that exist in the eastern Mediterranean where Greece?and Turkey disagree over the limits of the continental shelves. Cyprus and Greece 'now await the results of an EIB study, which will determine if the cost of the project spiraled beyond the initial forecast.

"If the project costs more, there are a few different ways to do it," said Damianos, adding that these could include finding additional investors or requesting further EIB support.

We have some ideas but first we need to know how much the project will cost.

Damianos was scheduled to meet with the European Commission, Greece's Energy Minister and Damianos on Tuesday in Nicosia.

The EIB stated that discussions were ongoing. A spokesperson stated that "any potential financing request will be evaluated in accordance with the Bank's policies and procedures."

Cyprus is the sole EU country without any electricity links with other EU members. The?cable will improve the energy security of the island.

The EU has allocated 657?million Euros in funding to the project.

The project's goal is to reduce the cost of solar energy for consumers and export Cyprus?excess?solar energy to Europe?and Israel.

Damianos stated that 63% of the construction cost would be covered by electricity bills, which makes the overall cost an important consideration for the government.

(source: Reuters)