Joint Statement: Cyprus and Lebanon Announce Agreement and Launch of a Prefeasibility Study by the World Bank Regarding the Electricity interconnection between the two countries

The Minister of Energy, Commerce and Industry of the Republic of Cyprus, Michael Damianos, and the Minister of Energy and Water of the Lebanese Republic, Joseph Al-Saddi, have jointly confirmed their agreement on the Terms of Reference (ToR) and the launch of a World Bank-supported prefeasibility assessment of an electricity interconnection between Cyprus and Lebanon.

The agreement marks an important milestone in the cooperation between the two countries, aimed at exploring opportunities to strengthen regional energy connectivity, enhance energy security and promote sustainable economic development in the Eastern Mediterranean.

The two Ministers express their appreciation to the World Bank for its continued support and its responsiveness to the request submitted by the Governments of Cyprus and Lebanon, acknowledging the Bank’s valuable contribution in advancing this strategic initiative.

In this context, the Ministers have endorsed the World Bank’s proposed phased approach for conducting the study. Under this methodology, the assessment will commence with an evaluation of the electricity supply-demand balance and a high-level economic analysis under agreed scenarios. Subject to positive findings, the work will then proceed to a detailed techno-economic prefeasibility assessment. The Ministers emphasised that this sequential approach will enable informed decision-making at each stage, while ensuring that subsequent analyses are grounded in robust technical and economic evidence.

To support the effective implementation of the study, Cyprus and Lebanon will establish a joint Steering Technical Committee that will work closely with the World Bank.

The two Ministers express confidence that the prefeasibility assessment will provide a sound basis for evaluating the viability of an electricity interconnection between Cyprus and Lebanon and will contribute to broader efforts to strengthen regional energy cooperation in the Eastern Mediterranean.

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