The Cyprus Organisation for Storage and Management of Oil Stocks (COSMOS) has concluded a €35 million financing contract with the European Investment Bank (EIB), to finance the construction of a privately-owned oil storage terminal.

According to an announcement published by the PIO, the agreement was concluded after a long and multidimensional evaluation process by the EIB, both of the supported project and COSMOS.

“EIB is one of the strongest, more prestigious and most reputable international financial institutions and the financing agreement gives significant validation to the construction of a privately-owned terminal and to the broader operation framework of COSMOS,” says the announcement.

It notes that the loan has favourable conditions and supports the first infrastructure project in Cyprus funded by the European Structural Investment Funds (EFSI), also known as the “Juncker Plan”. It is provided without government guarantees and without collateral.

COSMOS storage terminal will be built in Vasilikos Energy Center and will consist, at this stage, of six liquid fuels storage tanks with a total capacity of 200,000 cubic meters, pipelines and pumping stations, fire protection systems and an administration building.

The construction is expected to begin in 2018 and the total cost will be €50 million.

According to recent assessments, the construction of a privately-owned oil storage terminal has a net present value (NPV) of € 70 million, which is the expected direct economic benefit.