EIB bolsters key investments in Cyprus with EUR 268 million loans

The European Investment Bank signed today in Luxembourg two loans for up to EUR 268 million for key investments in Cyprus.  The loan agreements were signed by EIB Vice President Plutarchos Sakellaris, responsible for operations in Cyprus, and Mr. Kyriacos Kakouris, Senior Economic Officer, on behalf of the Cypriot Minister of Finance:

•  EUR 200 million to the Republic of Cyprus will provide timely support for the implementation of the Cypriot National Strategic Reference Framework (NSRF). It focuses on sustainable development, competitiveness and human capital. The operation is structured as a framework loan and will be used by the Cypriot state for investments in priority areas identified in the National Strategic Reference Framework. The investments to be financed are grouped around selected priorities of two comprehensive Operational Programmes (OPs) of the Republic of Cyprus. The schemes implemented within these OPs are expected to contribute primarily to the achievement of objectives in Sustainable Development and Competitiveness, as well as Employment, Human Capital and Social Cohesion. The investments will address long-term objectives of the Cypriot economy in the sectors of solid waste management, port infrastructure, renewable energy, knowledge economy, human capital, SMEs and sustainable urban development.
  
  The EIB has provided similar loans to other EU countries, including Greece, Romania, Latvia, Lithuania and Hungary. The EIB has also financed the Cypriot national contribution to operational programmes in the 2004 -2006 programming period.

• EUR 68 million will support the Limassol-Amathus Sewerage and Drainage Project, which, having commenced in 1992, is being implemented in several phases bringing the system  in line with the requirements of the EC Urban Wastewater Treatment Directive. The project includes an all-round upgrade of the existing main collector system. Upon completion in 2017, the project will extend the service area for wastewater collection, and will provide an additional wastewater treatment plant of 100,000 population equivalent, as well as sludge processing facilities for the existing and new wastewater treatment plant, storm water drainage and retention structures and related works.

On this occasion, EIB Vice-President Plutarchos Sakellaris stated: “The two agreements signed today for investments in Cyprus totalling EUR 268 million will strengthen the competitiveness of the Cypriot economy and enhance the effective use of the EU grant funds allocated to the country.  We are building on the excellent co-operation with the Cypriot authorities, and joining forces with the European Commission in the priority areas of sustainable development and human capital. I would like to assure you that the EIB will keep its product mix and expertise available and ready to use for the benefit of Cyprus in the coming years”.

Mr. Kyriacos Kakouris highlighted the importance of the EIB financing at the present time, when the Cyprus economy faced many challenges. He thanked personally VP Sakellaris and the EIB staff for their excellent cooperation with the Cyprus Authorities; the Planning Bureau, The Ministry of Finance and the Sewage Board of Limassol-Amathus for the efficient and timely preparation of the two projects.