A decision to proceed with a tender for the pre-selection of contractors for the Liquefied Natural Gas (LNG) Terminal project in Vasiliko, as well as to address the central committee of changes and requirements to approve a fund and pay for the risk investigations was taken yesterday by DEFA, while according to CERA, the worst-case scenario is that the arrival of natural gas will not happen until 2030.
These were said during today’s session, Tuesday, of the Parliamentary Energy Committee, during which MPs raised the issue of delays and consultants.
Regarding the implementation of the project, the President of the Public Natural Gas Company (DEFA), Giorgos Asiikalis, stated during the session that a six-month extension was given to the Technip company, which provides project coordinator services, in order to complete the overall planning.
He also noted that the valve system and nitrogen production unit for the floating LNG storage and regasification unit “Prometheus” located in Malaysia, with all works costing less than 1 million euros.
“Yesterday we succeeded and took another two steps forward. We have made a decision to enter a tender for preselection of contractors. We have made a decision to go to the central changes and claims committee to approve a fund and pay for the risk surveys. We are proceeding at full speed with tenders for the completion of the project”, said Mr. Asiikalis.
The Chairman of the Energy Committee and DISY MP, Kyriakos Hatzigiannis, raised the issue of consultants, requesting an investigation by the Auditor General, who was present at the session. “I am asking the Auditor General to investigate whether the syndicate schemes of the consultants revolve around two specific individuals. Not all of them can give advice and get these results. Any confidential document that has come into my possession, it is my duty to give it to the Auditor General,” he said.
“There were only two people dancing on the dance floors. I want to know if there were real advisors and not virtual advisors. Based on CERA’s position, they clearly consider that before 2030 natural gas will not come to Cyprus under any circumstances. The capital impact of the polluters alone will mean another additional billion on top of the billion it has already cost. This is all hellish and the Auditor General should come and check things out. We asked for an investigation to be prepared on the matter of the advisers, but also on the correctness of the decisions,” he said.
The General Auditor Andreas Papakonstantinou clarified that, “we audit the organization, not the consultant”, adding that “if they had consultants they shouldn’t have, ETYFA is responsible”.
DISY MP and Deputy Chairman of the Energy Committee, Averof Neofytou, mentioned during the debate that “a foreign expert was in the DEFA bid preparation team”. He left, he said, “and switched to another organization and that organization took the offer to check the implementation of the same one that prepared it with another hat” to add that “it is a very serious matter”.
“The cost of counseling is paid by the taxpayer and this state blows the whistle. If I were in the position of DEFA or the state, I would have initiated 100 lawsuits against the advisers”, added Mr. Neofytou.
“For the issues of the terminal there was no other charge. The central provider was paid. We did not hide anything, the amounts are accurate as they come out of the accounting program. There is complete transparency,” said the Deputy General Manager of the Natural Gas Infrastructure Company (ETYFA), Nikolas Valanidis.
“In the big projects it’s the same pattern. We get into adventures and some end up with this process at the end of the day, earning a lot of money,” said the President of the Environmental Movement, Stavros Papadouris.
“The contracts with the legal advisers are not the current people of DEFA and ETYFA who signed them. They are old stories that happened years ago”, was the comment of the President of DEFA on the matter. “There was a change in one of the partners of this partnership. One of the experts left and went to another company. We try every day to implement the project. With the termination of the contract, we started the process of finding a project manager,” he added.
“We had control and supervision. They are recorded. We had given two recommendations. To say that a project manager came in is out of place and not true. Whatever risk there was, we recorded it. The studies and notes of the independent engineer are available at ETYFA”, was the response of the representative of the company “Hill International”.
The President of the Cyprus Energy Regulatory Authority (CERA), Polybios Lemonaris, noted with regard to the arrival of natural gas that “we are running continuous studies on the adequacy and they include the worst case scenario that the arrival of natural gas will not come until 2030”.
AKEL MP Kostas Kostas described what was said about the issues of the councilors as very serious. “No one knows if the project will be done, when it will be finished and how much it will cost. The consultants alone may get more than 60-70 million. The ship costs €440,000 a month just because it is in Malaysia,” he said.
“We cut the staff in half. The monthly cost will be 190 thousand less. The ship is still in Malaysia and it is under investigation where it will go. There was interest from companies to use it, but the European Union does not allow us to do so,” said Mr. Asiikalis about the “Prometheus” ship.
The former General Director of DEFA, Marios Menelaou, told the MPs that “DEFA and ETYFA relied on external technical consultants” and that “the cost of non-delivery of natural gas amounts to 350 million per year”.
Mr. Menelaus made a proposal. “I have in my possession a temporary solution that was given in Colombia and is also applicable in Cyprus,” he said and wondered “why not consider the construction of pipelines from the Aphrodite deposit”.
“We have found many times that no project is finished. We need to see the documents of the public contracts again”, noted a representative of the Technical Chamber of Cyprus (ETEK).
Source: KYPE