Cyprus University of Technology gets €125 million in EIB support for campus upgrades

• EIB to help fund construction of student housing as well as renovation of academic, research and sports facilities at Cyprus University of Technology (CUT)
• CUT campuses in Paphos and Limassol to gain a total of 703 new student residences
• EIB financing covers 70% of project costs
• EIB Advisory services also included to improve energy efficiency of infrastructure

The Cyprus University of Technology (CUT) will benefit from €125 million in European Investment Bank (EIB) loans to build affordable student housing and upgrade campus facilities in the cities of Paphos and Limassol. The EIB funds will ensure that the planned student lodgings are sustainable and affordable and that academic, research and sports facilities meet the highest teaching and environmental standards.

The EIB funds stem from two financing agreements with CUT totalling €108 million and one funding accord with the municipality of Paphos amounting to €17 million. Part of the financing –

€89 million – is backed by the InvestEU programme, which marks its first operation in Cyprus. The EIB support will cover 70% of the project’s total cost.

“Investing in university infrastructure is key to ensuring that Cypriot universities can attract and train talented people and support economic growth, business innovation and social progress in the country,” said EIB Vice-President Kyriacos Kakouris. “A lack of sustainable and affordable housing is a major problem in Cyprus as well as across the EU and one of our priorities is tackling this scarcity. With this new financial support for Cyprus, we are backing up pledges with concrete action.”

The project will involve the construction and renovation of over 81,000 square metres of academic and administrative space along with the creation of 703 additional living places for students. In Limassol, the upgrades will include a solar-power plant to provide renewable energy, making the campus more energy independent. EIB Advisory Services are also providing technical assistance as part of the agreement to help the CUT maximise energy efficiency in the infrastructure that will be developed.

“The EIB’s continued strong partnership with Cyprus has resulted in this vital new financing in our education sector,” said Cypriot Finance Minister Makis Keravnos. “This support is of huge significance and is aligned with our goal of accelerating investments for sustainable and affordable housing and energy efficiency.”

The plans in Paphos offer a signal for Cyprus as a whole.

“By establishing, operating and managing a student residence, the Municipality of Paphos sets the first example of a local authority in Cyprus responding to a clear social need,” said Paphos Mayor Phedon Phedonos. “Decent housing is a basic requirement to have happy, proud and productive students and it is here that local government needs to show that it listens to what the community needs.”

CUT echoed the point.

“A dream we have had for many years has come true,” said CUT Rector Panayiotis Zaphiris.

“The provision of the necessary student accommodation and other major projects funded by the signing of these loan agreements build a stronger future for our university, especially for our students.”

CUT Board Chairman Costas Galatariotis added: “Today is the ideal prelude to a new path of development for the Cyprus University of Technology. Our warmest thanks to the EIB and the Republic of Cyprus through the Ministries of Finance and Education, for the trust and support. The impact of this partnership will be extremely important for the University and especially for the progress and well-being of our student community.”

CUT Student Union President Petros Christodoulou stressed the benefits of the planned new student housing.

“The high cost of accommodation has become a significant social problem for university students in recent years,” Christodoulou said. “These investments will help the university accommodate the increasing number of students and keep growing.”

The new loans bring total EIB financing for Cypriot universities and research institutions over the past decade to more than €300 million.

Previous EIB commitments were to expand and modernise the University of Cyprus in 2014 and 2017, when the bank provided a total of €162 million for the extension and modernisation of the University of Cyprus’s facilities and to create the Faculty of Engineering. Those two financing packages also helped improve energy efficiency and protection against earthquakes.

Furthermore, the EIB provided €25 million in 2017 for extra space, new equipment and research activities at the Cyprus Institute of Neurology and Genetics.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.