TEPAK STUDENT RESIDENCES (CYPRUS)

Promoter – Financial Intermediary

CYPRUS UNIVERSITY OF TECHNOLOGY,PAFOS MUNICIPALITY

Location

• Cyprus

Description

The project concerns the financing of the construction of student residences as well as the construction and/or renovation of academic and research facilities for the Cyprus University of Technology.

Additionality and Impact

The project is in line with the InvestEU objective of social investments. The project concerns the construction of student residences and associated sports infrastructure as well as the construction and renovation of academic and research facilities and a photovoltaic park for the Cyprus University of Technology. Additionally, the project will finance complementary transversal investments such as digitalisation activities. It contributes to the European Education Area by 2025, the EIB's Innovation, Digital and Human Capital Public Policy Goal and is in line with the 'widening participation and spreading excellence' objective of the Horizon Europe.

The Project addresses the need for affordable student accommodation in the country, which has become an acute social concern in recent years. Furthermore, the supported investments aim at improving access to high-quality public higher education and promoting excellent research, creating positive externalities. Additionally, the Project has the potential to foster job creation and improve productivity and economic growth. Finally, the investments targeting climate change mitigation will contribute to the construction of a more sustainable future.

EIB also aims to provide non-financial support that will promote energy efficiency investments as the Promoter will carry out energy efficiency tests such as air tightness and thermal integrity.

The financing proposed offers features such as revisable rates, longer grace periods and a long tenor that improve the affordability of the project.

Objectives

The main project objective is to enhance the learning experience of university students by addressing a housing shortage in the Limassol and Pafos areas of Cyprus, through the provision of affordable student accommodation, and upgrading and expanding TEPAK's learning and research facilities. Such investments will contribute to human capital formation and economic and social development in Cyprus.

Sector(s)

• Education - Education

Proposed EIB finance (Approximate amount)

EUR 125 million

Total cost (Approximate amount)

EUR 178 million

Environmental aspects

Directive 2011/92/EU, as amended by Directive 2014/52/EU on Environmental Impact Assessment (EIA), does not specifically cover educational activities, leaving it at the discretion of the responsible competent authorities to request an EIA on the basis of the location and scale of the works concerned. However, universities (including research and student residences) may fall under Annex II of EIA Directive 2011/92/EU with respect to urban development. Social and environmental aspects as well as any issues related to historical and cultural heritage will be verified during the appraisal. This includes verification of compliance with accessibility features for people with reduced mobility. The project will include new buildings and potentially renovations, which will comply with the 2010/31/EU Directive on the energy performance of buildings and Directive 2012/27/EU on energy efficiency. The project will be located in a less developed region as defined by the EU cohesion policy. Therefore, the project is expected to support the strengthening of the EU's economic, social and territorial cohesion. Moreover, the project will contribute to better-balanced territorial development, counteracting excessive concentration, strengthening secondary growth poles and reducing inequalities between people and between places.

Procurement

The Bank will require the promoter to ensure that contracts for implementation of the project have been or will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 28/06/2024