Ongoing Construction Dispute at Vasiliko LNG Terminal
The CPP-Metron Consortium Ltd (CMC), a Chinese-led construction firm, has escalated its payment dispute with the Natural Gas Infrastructure Company (Etyfa) over the liquefied natural gas terminal project in Vasiliko. In a series of statements, CMC accused Etyfa of altering the terminal’s original plans and failing to remunerate for the additional work requested.
CMC alleges that Etyfa has not only delayed advance payments by a year but also consistently missed milestone payments, forcing the consortium to finance the ongoing work themselves. This breach of contract, according to CMC, has led to an “unsustainable situation” where they had to suspend work in January as a last resort, resuming only after assurances from Etyfa to settle outstanding debts.
The construction dispute intensified as CMC claimed that Etyfa’s behavior concerning payments has not improved, with some invoices pending for nearly six months. The consortium criticized Etyfa for using non-payment as leverage to impose demands and for rejecting invoices on questionable grounds.
CMC highlighted that the project was founded on the principle of timely payments from Etyfa, which have not been forthcoming. The dispute took another turn when CMC pointed out that Etyfa had made significant changes to the project scope, shifting from a facility designed for importing LNG to one capable of exporting it. This change involves complex cryogenic technology and substantial additional costs, for which CMC insists they should be compensated.
The disagreement over the jetty’s construction has been ongoing for years, with CMC striving to find practical solutions without resorting to public statements. However, they now contend that the changes requested by Etyfa have fundamentally altered the nature of the project they initially agreed to undertake.
Etyfa responded to CMC’s claims by expressing surprise and unequivocally rejecting them as untrue, citing confidentiality provisions and refraining from engaging in a public debate over the matter.
This latest round of accusations comes after a brief period of apparent reconciliation between CMC and the Cypriot government, with construction resuming earlier this year following previous disputes. The renewed conflict underscores the complexities and challenges inherent in large-scale infrastructure projects and the critical importance of clear contractual agreements and communication between involved parties.
