French company Meridiam SAS has agreed to purchase a stake in the €1.9 billion ($1.98 billion) project that aims to connect Greece’s electricity grid with those of Cyprus and Israel via subsea cables in the Eastern Mediterranean, according to a Bloomberg report.

Meridiam, which specializes in infrastructure investments, will acquire a 49.9% stake in the Great Sea Interconnector (GSI) project, while Greece’s Independent Power Transmission Operator (IPTO/ADMIE) will retain a 50.1% share. The information comes from sources familiar with the matter who requested anonymity as the agreement has yet to be officially announced.

The subsea electricity interconnection will be among the largest globally and will integrate Cyprus, the last non-connected member of the European Union, into Europe’s power transmission system. Over 1,200 kilometers (745 miles) of high-voltage cables will be laid at depths of up to 3,000 meters (9,842 feet).

Both companies will finance their respective shares in the project, with the agreement also allowing for the potential inclusion of additional investors in the future, according to the sources.

Representatives for IPTO and Meridiam declined to comment on the matter.

The GSI serves as the implementation body for the Greece-Cyprus-Israel electricity interconnection project and is a subsidiary of IPTO. Under the agreement, GSI’s board of directors will initially consist of 11 members—six appointed by IPTO and five by Meridiam.

The organizational structure of GSI will adhere to the terms of the concession agreement mutually agreed upon by both parties, the report added.

Construction of the Cyprus-Greece segment, via Crete, began in 2023. In the next phase, Israel will be able to bolster its energy security and accelerate the integration of renewable energy sources into its energy mix.

The project is listed as one of the European Union’s Projects of Common Interest (PCI), and the EU has already provided a €657 million grant for the Cyprus-Crete segment.