Ref. Ares(2018)451122 - 25/01/2018
INEA CEF GAS
Action 7.3.2-0026-CY-W-M-17 "Removing internal bottlenecks to end
isolation & allow transmission of NG from Eastern Mediterranean
Draft GA_Action 7.3.2 - CyprusGas2EU.docx
Following the call for proposals of 26th April 2017 concerning projects of common interest under the
Connecting Europe Facility in the field of energy, on 25th January 2018 the CEF Coordination Committee
has given a positive opinion on a list of Actions proposed for funding.
We are happy to inform you that this list also includes Action 7.3.2-0026-CY-W-M-17 "Removing internal
bottlenecks to end isolation & allow transmission of NG from Eastern Mediterranean (CyprusGas2EU)"
For your information, you will find at the bottom of this email the overall comments regarding the
proposal as provided by the Evaluation Committee. Information regarding the marks awarded to the
proposal may be communicated upon request.
Without prejudice to the final decision to be taken by the European Commission in the coming weeks,
and in order to facilitate the next steps, please find attached a first draft version of Annex 1 of the Grant
Agreement for your review. We would be grateful to receive your comments and/or modifications on
this draft by 9th February 2018 in order to accelerate the preparation and signature of the Grant
I take this opportunity to request that you provide us with the following information:
• The name and title of the person who will sign the Grant Agreement;
• The contact details and the name and title for the official contact persons.
• The following information in relation to comments made during the evaluation of the proposal:
o Clearer justification and substantiation on the impacts on the identified countries,
especially on Greece
o Better description of the overall project management structure and strategy, as well
as identified roles and responsibilities
Furthermore, we would like to invite you for a meeting on 19 February 2018 at 09:30-12:30 at INEA
premises in Brussels. The purpose of this meeting will be to clarify any open questions on the revised
Annex I and draft Grant Agreement, for you to provide us with an updated presentation of the
envisaged Action and to discuss a number of specific elements concerning its implementation
(objectives, description of activities and milestones, etc.). Depending on your preferred arrangements, a
video conference could alternatively be organised to serve the same purpose (if this is the case please
let us know).
For planning purposes, we would be grateful to receive confirmation of your availability for the meeting
by 9th February 2018.
I would like to highlight that this e-mail does not constitute a formal commitment by INEA or the
European Commission to provide financial support to the envisaged Action. This will depend on the
successful conclusion of the grant preparation process. I would like to draw your attention to the fact
that you will not acquire any rights until all parties have signed the grant agreement.
For further correspondence, please always indicate the Action code, i.e. [7.3.2-0026-CY-W-M-17] in
subject and only use the functional mailbox firstname.lastname@example.org (pleas
e don't reply to this EC
ARES NOREPLY email address).
Please do not hesitate to contact me should you have any questions or clarifications on this matter.
I look forward to your reply at your earliest convenience.
"OVERALL COMMENTS PROVIDED BY THE EVALUATION COMMITTEE: The proposed Action aims at
introducing Natural Gas to Cyprus in order to end the current energy isolation, drive the establishment of
the internal market for gas and improve the environmental and carbon footprint of the electricity
production in the country. The action includes the construction of an offshore LNG Facility (FSRU) and
related construction components. The action's maturity is excellent and the implementation can start
promptly. The action will create some degree of positive externalities in relation to solidarity and security
of supply but does not demonstrate specific effects in regards of technological innovation. It is also
expected to have particularly high benefits at national level in terms of sustainability of electricity
generation. The proposal documents the need to overcome financial obstacles but it does not justify, nor
clearly substantiate, the need for requested the exceptional, 75% co-funding rate. The implementation
plan is sound and well-structured although the proposal would have benefited from a more
comprehensive assessment of the human resources and project management structures to be in charge
of carrying out the project. In this respect and in order to streamline the implementation of the action it
seems justified that there is one single entity ultimately responsible for the action, i.e. the promoter of
the CyprusGas2EU PCI. Accordingly, the Activity 8 (Project Management & Dissemination) should not be
covered by the CEF grant. Instead, specific project management, construction supervision and technical
coordination expenditures of MECIT should be considered eligible expenditures as part of other activities
which are recommended for CEF funding. The construction of Emergency Shelter for the FSRU, i.e.
Activity 7, should not be covered by the CEF grant as this involves works which go beyond the scope of
the implementation of the FSRU terminal. The overall co-funding rate should not exceed 40%. The
proposal is recommended for funding except, for Activity 7 and 8
Project Officer – C4 CEF Energy
Innovation and Networks Executive Agency (INEA)
Chaussée de Wavre 910