THE CABINET yesterday gave the green light to the Electricity Authority (EAC) to participate in the Hellas Sat satellite venture due to be launched in March.
Trade Industry and Tourism Minister Nicos Rolandis said the cabinet approved the move even if Hellas Sat has not provided all the necessary documents requested by his ministry.
The satellite is due for launch on March 11 and will provide television and telecommunications services for the 2004 Athens Olympics while covering Greece, Cyprus, and another 25 countries in the Balkans, central Europe and the Middle East.
Rolandis said the EAC’s participation in the consortium has been approved with the condition that his ministries demands would be satisfied.
The ministry wants proof that the loan — $100 million-would have been secured by Hellas Sat before the EAC committed its capital.
A second condition was that Greek telecommunications organisation (OTE) must finalise a deal for the leasing of eight transmitters from Hellas Sat.
Rolandis said OTE has already decided it would lease the transmitters.
The Hellas Sat venture is expected to cost between $170 to $180 million with the EAC participating in the project with $19 million.
At this stage the company’s share capital is $73 million while the rest would be borrowed, Rolandis said.
Around $70 million would be spent to acquire the satellite, $50 million on the launch, which would take place in the USA, and $30 million would be paid to insure the satellite, if something should go wrong with the launch.
The minister said the figures have been confirmed through studies carried out by independent experts.
There is a final obstacle to overcome, as the EAC funds must be approved by the House, which is not scheduled to meet until after the presidential elections.
Rolandis said the approval must be given early in March to enable the EAC to withdraw the funds on time.
The minister said he did not know whether the House would hold an extraordinary plenary session though it is understood that the government would have to request it first.
The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.
