Friday, July 15, 2011

A hard week for Cyprus

You may have seen or heard on the news that there was a big explosion on island last Monday. A large Iranian arms shipment passing through Cypriot waters was impounded three years ago, and was stored on the island on a naval base beside a large power station.  Last Monday the arms and ammunition exploded after a small bushfire, causing extensive damage to island's main power station, killing 12 people and injuring many more.  The loss of the island's main power station at the peak of summer and tourist season is a major setback, and will create a huge burden on an economy that is already struggling in recession, along with the economic woes
of neighbouring Greece looming large.


www.bbc.co.uk
Police fire tear gas as thousands of Greek Cypriots march on the presidential palace in protest at the deaths of 12 people in Monday's blast at a navy base.

Loss of the main power station also means that all Greek parts of the island have had to commence rolling power cuts and water restrictions (much of the island's water is provided via desalination).  This is likely to go on for a number of months due to the extent of the damage to the power station. 

Over the past three nights, there have been large protests at the President's palace in Nicosia.  People are demanding the President's resignation, as it is widely felt that the incident could have been prevented had basic precautions been followed.  It's been interesting to observe the reactions of our Cypriot colleagues.  There is a sense of anger and frustration with inept Government and bureaucracy, and I think also a sense of shame that a modern EU country would find itself in this situation.    

So now daily power outages are a reality, with a further potential for water cuts where water will only be available for 12hrs in 48.  The Government is currently working on short term options to increase electricity supply for basic demands.  This includes sourcing large generators from Israel and Greece.  Ironically there has also been an offer of additional power from the Turkish side of the island (which runs on a separate grid and generates it's own power). 

Large public funerals have been held over the past few days for those killed in the blast, with all flags at half mast and church bells ringing across the city. 

All in all a challenging week for Cyprus.


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