Nicosia: The second £100 million tranche of a total £200 million loan agreement was signed on Thursday between the Republic of Cyprus and the European Investment Bank (EIB) for the financing of major infrastructure projects across Cyprus. The agreement was signed during a ceremony at the Ministry of Finance by Minister of Finance, Makis Keravnos, on behalf of the Republic of Cyprus, and EIB Vice President, Kyriacos Kakouris, on behalf of the Bank.
According to Cyprus News Agency, Kakouris emphasized that the loan is not merely financial support for a specific project but represents a shared commitment to developing better, safer, and more sustainable infrastructure to significantly improve the daily lives of the people of Cyprus. He noted that the investment will enhance regional connectivity, sustainable urban mobility, road safety, and climate-resilient transport infrastructure, contributing to the sustainable development of the country.
Kakouris further highlighted that the EIB offers specialized technical assistance and works closely with relevant authorities to ensure optimal project implementation. The financing comes with long-term loans and extended grace periods, providing the best possible terms for the Ministry of Finance.
Minister Keravnos stated that the agreement demonstrates the relationship of trust and effective cooperation developed over the years. The financed projects, estimated to cost around £400 million, are expected to be implemented from 2024 to 2029. Some projects are already under construction and co-financed by the EU through the Connecting Europe Facility and the THALIA 2021-2027 Cohesion Policy Programme.
Keravnos described the projects as strategically important, aiming to improve road safety, accessibility, and citizens’ quality of life. He expressed confidence that the projects would deliver meaningful benefits for Cypriot society and the economy, emphasizing the significance of the EIB’s favorable financing terms and long-term perspective in achieving development goals.
Eleftherios Eleftheriou, representing the Minister of Transport, Communications and Works, stressed that developing Cyprus’ core land transport infrastructure remains a priority to enhance the competitiveness of the economy and address climate change challenges. He noted that the current framework loan agreement provides flexibility in project selection, with the EIB’s support for projects in Cyprus exceeding £1 billion over the past 25 years.
A Finance Ministry press release stated that the co-financed projects under the loan agreement include major road infrastructure interventions throughout Cyprus. These involve the construction and upgrading of highways, urban and rural roads, bridges, and tunnels, as well as upgrades to roundabouts, installation of road lighting systems, noise barriers, road safety measures, and improvements to existing road infrastructure.