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The government’s lack of (or unimpressive) strategy on energy has been criticised by opposition Euro MP Neoclis Sylikiotis, himself a former Commerce and Energy Minister during the Christofias administration.
Sylikiotis cites a number of faults or shortcomings of the present administration that, four years in office, has shown little as regards a clear cut strategy on upstream and downstream exploitation of oil and gas resources, and establishing Cyprus as a key energy hub, not just for hydrocarbons, but for energy supply and electricity interconnection.
“The celebrations and cultivation of exaggerated expectations is not productive,” Sylikiotis wrote, adding that what is needed is seriousness and hard work “within the framework of a comprehensive plan, which the government has yet to develop.”
True, there is confusion as regards commitment to various projects, such as the East-Med gas pipeline, the EuroAsia Interconnector electricity cable and the Mediterranean Gas Storage terminal, with future potential for jobs in the thousands, according to the Akel official, if these projects get underway.
He also cites the government’s hesitation to push the oil giants to proceed with exploration, which, despite having reached the third licensing round, only two of 12 drills have been realised so far.
Furthermore, the EUR 103 mln raised from the third round licensing and an added 175 mln from the second round, seem to have vanished into thin air, probably added to the government payroll that the present and past administrations refuse to drastically reduce. Instead, all talk of establishing an Oil and Gas Wealth Fund, to be generated from all energy-related activities, have been set aside by the present government, their predecessors and all opposition forces. Whereas such a fund could also have been set up in escrow, for use by a future united federal nation, thus silencing once and for all Turkish accusations that the Greek Cypriot side does not want to share revenues, these funds have, unfortunately, been redirected to other uses. Naturally, being just ten months away from the next presidential elections, these uses have nothing to do with development and investments, but rather with voter-satisfying promises to civil servants.
To be fair, the same short-sighted and voter-driven decisions would have been implemented by any political party or ideology that would be in office, the difference being that the present administration was supposed to be “pro business” and may have shown some measure of entrepreneurship.
What is worrying, though, is that the ruling party seems to be swaying in its decisions, and hence support to the government.
Sylikiotis has a bone to pick with DISY, saying its leadership has only now agreed to setting up a terminal (proposed by the Christofias administration), having earlier demolished the state oil and gas company and thrown in the bin all past studies by companies such as the French Technic or even the Massachusetts Institute of Technology (MIT).
With the EU declaring a clear strategy in favour of natural gas-driven power production, it is a shame that Cyprus remains undecided on what it wants to do, probably ill-advised all along by the wrong consultants.
As the saying goes, “too many chiefs, no Indians!”
