The Republic of Cyprus signed Friday a new loan agreement with the European Investment Bank (EIB), of 200 million euro, for the partial financing of road infrastructure projects of the Department of Public Works, with the first tranche amounting to 100 million euro.
The agreement was signed by the Ministers of Finance and Transport, Communications and Works, Makis Keravnos and Alexis Vafeades, respectively, and the Vice-President of the EIB, Kyriakos Kakouris.
Speaking at the signing ceremony of the loan agreement, which took place at the Ministry of Finance, Keravnos said that the agreement represents a shared vision of the Government of Cyprus and the EIB for the future of Cyprus, a vision that embraces growth, sustainability and connectivity for all citizens.
He said that the projects that will be financed, with a total cost of approximately 400 million euro, are expected to be implemented during the period 2024-2029, noting that some are already under construction and some may receive co-financing from the EU, through the Connecting Europe Facility and the THALEIA 2021-2027 Cohesion Policy Programme.
Meanwhile, the Minister of Transport said that “the innovation of this 200 million loan agreement to support projects worth more than 400 million concerns the form of the (loan), as it is a framework loan that gives us the necessary flexibility in the selection of projects to be financed.”
He added that 19 projects have been proposed that will be financially supported by the new contract with the EIB.
EIB Vice President Kyriakos Kakouris said that “the 100 million loan, which we are signing today with the Ministry of Finance and the Ministry of Transport, Communications and Works, is not just financial support,” but “represents our shared commitment to creating better, safer and more sustainable infrastructure, which will substantially improve the daily lives of the Cypriot people.”
According to an EIB press release, the loan has more favorable terms than those in the market and offers longer disbursement periods and fixed interest rates for the entire duration of the loan. It includes a wide range of projects, like upgrading and construction of motorways, regional and rural roads and the construction of new bridges, tunnels and pedestrian and cycle paths, upgraded traffic management systems and sewerage systems.
In his address at the ceremony, the Minister of Finance said that the EIB’s support will play a crucial role in the transformation of the Cypriot transport network, providing the necessary resources to enhance mobility and road safety, stimulate economic growth and improve the quality of life of people across the island.
“The successful conclusion of this loan agreement is clear evidence of the confidence that the EIB has in the economy and future prospects of Cyprus” he underlined, adding that it also shows the close and effective cooperation between the Cypriot Government, the EIB and all the stakeholders involved.
The loan signed today, he said, is the 4th one secured by the EIB in the transport sector, with total financing approaching half a billion (€492,000,000).
Keravnos thanked on behalf of the Government of the Republic of Cyprus, the EIB and in particular its Vice President “for the Bank’s practical support to our country and the people of Cyprus, which spans many decades, providing financing in excess of €5.6 billion to support 83 projects in total”.
