Release date: 9 January 2004
Promoter – Financial Intermediary
Electricity Authority of Cyprus (EAC).Location
Description
The project concerns the construction (turnkey Engineering, Procurement, Construction (EPC) contract) of a new CCGT generator (Unit 4) at the Vasilikos Power Plant, with a generating capacity in the range of 170 to 220 MW. The selection of the CCGT technology is largely explained by the assumed timely availability of natural gas on the island. The CCGT will operate on distillate oil for about 3 years and then switch to gas as primary fuel when Liquefied Natural Gas (LNG) will be available at the site.
Objectives
The project aims at the cost-effective supply of electricity, both to meet growing demand and to replace obsolete and less efficient existing generating capacity. Generally, an adequate and reliable provision of electricity at reasonable cost supports the economic development of Cyprus. Furthermore, the CCGT technology will raise the average thermal efficiency of the system and will contribute to minimise emissions of greenhouse gases and air pollutants per unit of electricity generated. The unit production cost and the environmental benefits should further improve once the initial use of gasoil can be replaced by natural gas.
Comments
Electricity generation.
Sector(s)
Proposed EIB finance (Approximate amount)
Up to EUR 100 m.
Total cost (Approximate amount)
Of the order of EUR 160 m.
Environmental aspects
Due to its size, the project falls under Annex I of Directive 97/11/EC and thus requires an Environmental Impact Assessment (EIA). Cyprus already applies the EU legislation on EIA and the project is expected to comply with EU policy and legislation in the field of environment. The appraisal will include the confirmation that there shall not be a negative impact on any important site of nature conservation. The project represents a more energy-efficient and low-emission technology than previously used in Cyprus. The project will also facilitate the decommissioning of old, inefficient and polluting heavy fuel oil power station units.
Procurement
The project will have to comply with EU directives relevant to the sector, including publication in the Official Journal of the EC when appropriate.
Status
Signed - 7/05/2004
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).