The contracts for the construction of the first phase of the Cyclades electricity interconnection project were signed on Wednesday in Athens.

The first phase of the interconnection project with the mainland electricity system, includes the islands of Tinos, Mykonos and Paros and is expected to be completed at the end of 2016.

The project is expected to be completed with the interconnection of Naxos, in 2019. Then, the savings from the reduction of the electricity cost will reach 100 million euros per year. After the inclusion of Crete in the project, cost reduction may exceed 500 million euros per year.

The budget of the investment totals 240 million euros.

Deputy Environment, Energy and Climate Change Minister Makis Papageorgiou said that the project would benefit greatly not only the islands but all electricity consumers who will see significant reductions in their bills. Mr. Papageorgiou added that, through this project, the government protects ” one of the most dynamic parts of the country’s economy, tourism, and these projects put an end to the blackout risks for major tourist destinations”.