Cyprus government and lenders agree on EAC privatisation

Cyprus government and lenders agree on EAC privatisation

Nicosia, January 8, 2016/Independent Balkan News Agency

By Kyriacos Kyriacou

The Government and its international lenders have reached an agreement regarding the future of EAC (Electricity Authority of Cyprus).

CNA has learned that the Energy Ministry and the Troika (European Commission, European Central Bank and IMF) agreed on the withdrawal of the privatization decree of EAC with the Government having secured the legal unbundling of the Authority to two companies, one of which will be taking over the transmission and distribution networks and the other production and supply.

A government source has told CNA that the Ministry`s final proposal was sent to the lenders on Thursday and a positive reply was received today. On Monday, according to the same source, the proposal will be put before the Cabinet.

The Troika has also accepted, as CNA has learned, to include the Government`s reservations in the proposal as regards uncertain factors such as the potential solution to the Cyprus problem, the arrival of natural gas and the Inter-connector cable.

When a final agreement is reached, the Energy Minister will have to put forward the implementation plan, something that must be done, as CNA has learned, in the immediate future.

In case the Government needs to draft any bills, these must be put before the Parliament by the end of the year and the decision must be implemented in the next two years, thus until the end of 2017.

The Government is expected to make announcements on the issue on Monday, following the Cabinet meeting.