Cyprus: EIB commits €230 million support for vital wastewater management and multi-sector investments.

• New €100 million investments to move Cyprus towards full compliance with EU Urban Wastewater Treatment Directive.
• Water management projects to cover country’s three major cities, Nicosia, Larnaca, and Limassol.
• A total of €130 million in EU Co-financing will support key smart and green investments across multiple sectors to boost the local economy.

The European Investment Bank (EIB) has announced a total of €230 million in financing support for two vital projects in Cyprus, a €100 million loan for wastewater management investments in three major cities, and a €130 million loan for multi-sector “smart investments”.

The wastewater investments in Nicosia, Limassol and Larnaca will fund the preparation and construction of sewer networks and treatment facilities for peri-urban communities serviced in the three largest cities in Cyprus, moving the country further toward full compliance with the EU’s Urban Wastewater Treatment Directive.

The multi-sector EU co-financing loan operation is to support the THALIA programme, which targets smart and green investments including digitalization, resource efficiency (especially water and energy), environment protection, modernising vocational and training infrastructure for employment, and social cohesion.

“As the green energy transition accelerates, these new agreements reflect the specific financing needs of the country and demonstrates the EIB’s increased support for transformational investment across Cyprus. We also have a strong pipeline of upcoming projects that includes more wastewater investments, innovation and research, and renewable energy, and we look forward to continuing our unwavering support into 2024,” said Kyriacos Kakouris, EIB Vice President for Cyprus.

“Today we’ve signed four loan agreements with the EIB for the financing of key projects which are expected to bring significant financial and environmental benefits for the Republic of Cyprus. Our goal is to use these funds appropriately and we hope that the intense activity of the EIB in Cyprus will continue in the coming years, with the financing of priority investments, both in private and public sector,” said Makis Keravnos, Minister of Finance.

“These finance contracts with the European Investment Bank and the Sewerage Boards of Limassol, Larnaca and Nicosia are particularly important because they will help the Cyprus Government to implement the projects resulting from the European Directive concerning urban wastewater treatment. With the completion of these projects, Cyprus is moving towards full compliance with the EU Directive,” said Petros Xenophontos, Minister of Agriculture.

EIB support for Cyprus’ water sector

The loan agreements for the wastewater projects, which were signed by EIB Vice President Kakouris, the Minister of Agriculture, Rural Dev. & Environment, Petros Xenophontos, the Mayor of Larnaca, Andreas Vyras, the Director of Financial Services of the Sewerage Board of Nicosia, Antonis Antoniou, and the General Manager of the Sewerage Board of Limassol-Amathus, Yiannis Tsouloftas, represent a significant step to move Cyprus toward full compliance with the EU’s water directives.

Cyprus is one of the most water-scarce countries in the world, with limited freshwater resources, while at the same time demand for water is increasing. Since Cyprus’s accession to the European Union, the EIB has approved financing in excess of €650 million to support several projects in the water sector throughout the country.

The latest investments are of key importance. While improving service efficiency, the new operations will also have other environmental and public health benefits, such as avoiding surface and groundwater pollution.

Demonstrating EIB support for key investment in Cyprus

THALIA, spanning from 2021 to 2027, and with a total budget of €1.8 billion, is central to Cyprus’ efforts of bolstering economic resilience and competitiveness through innovative investment and decisions. The new support of €130 million will finance selected operational programs and priorities during that period as outlined in the Cyprus partnership agreement, with the EIB playing an important role in helping the country steer its economy toward smart, digital, and sustainable investments, while also maintaining robust employment and social cohesion.

Last year the EIB provided a total of €250 million of financing for long-term investments in urban regeneration projects to be implemented across the country, and new targeted business financing to support SMEs and MidCaps through the Cyprus Entrepreneurship Fund.