Insurers paid EAC 30mln following 2011 Cyprus blast, another 102,5 to be paid
The negotiations between the two sides for an out of court settlement were concluded last October.
Atlantic Insurance Company has already paid a total of 30 million euro to the Cyprus Electricity Authority (EAC), out of a total of 132,5 million following the destruction of Vasilikos power plant as a result of a massive explosion in the nearby naval base, in July 2011.

The negotiations between the two sides for an out of court settlement were concluded last October.

According to statements made during a meeting of the House Finance Committee, the government has agreed to pay the counter-insurers 99 million euro in compensation in recognition of its own responsibility for the blast. The first installment of 15 mln will be paid end of January and the rest in 6 monthly installments of 14 mln each, starting July 2013 and ending January 2016.

According to a document prepared by the Finance Ministry, during the negotiations, EAC claimed a total of 167,8 mln while the insurers accepted only 110 mln. The two sides finally agreed to a compensation of 132,5 mln. This amount will be paid by Atlantic Insurance to EAC while at the same time 99 mln without interest will be returned to the insurers by the government itself, as a recognition of its liability.

Chairman of the Finance Committee Nikolas Papadopoulos said that according to the Attorney General Petros Clerides, the out of court settlement was in favor of the government. Clerides also pointed out that the real cost that the government will be asked to pay, including the claims of the victims’ families, cannot be estimated accurately right now, as the case is still pending before the court.

Thirteen people were killed and dozens were injured when a massive explosion occurred at the naval base “Evangelos Florakis”, near Limassol, on the southern coast, in the early hours of July 11th 2011. The blast badly damaged the island’s main power plant, at Vasiliko, resulting in daily power cuts for some months.

The blast occurred in containers, full of munitions, which Cyprus had confiscated from ``Monchegorsk``, a vessel sailing from Iran to Syria in 2009. Nicosia was acting in accordance with UN sanctions against Teheran.

A one-man investigation commission, set up by the government, examined the circumstances that have led to the massive explosion. The police also carried out their own investigations into the blast.

Two former ministers and six army and fire service officers charged with manslaughter in connection with the naval base blast were formally charged last April.

 — (KYPE)


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