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VILNIUS, Jun 25, BNS - Lithuania's electricity transmission system operator Lietuvos Energija (Lithuanian Energy) and the Central Project Management Agency (CPMA) have signed a consortium agreement for the implementation of a project on the linking of Lithuania's and Sweden's power systems, Lietuvos Energija has reported.

Lithuania's CPMA will represent the country in filing a joint applicationto the European Commission (EC) for the financing of the Baltic interconnection project. Lidija Kasubiene, CPMA deputy director, told BNS last Monday that the consortium agreement defined the responsibilities of the parties clearly. Later the companies of three states - the Lithuanian consortium, Sweden's Svenska Kraftnat and Latvia's Latvenergo would sign a memorandum of understanding and then a joint application to the Commission would be worked out, she added.

Lietuvos Energija would implement the project in Lithuania, while the state-run CPMA would receive the funding. The company due to build the power link is expected to be headquartered in Sweden. The venture would be controlled by the participating countries. Lithuania, Latvia and Sweden are to submit their joint application for the EU's funds by Jul. 15. The European Union has earmarked 175 million euros for the planned power interconnection under the Baltic Sea from Sweden to Lithuania, including the improvements of the power transmission network in western Latvia. Another 100 million euros should be provided for a second interconnection between Estonia and Finland.