Cyprus received a €100 million loan from the EIB for extensive road upgrades, marking the fourth significant road-infrastructure project supported by the EIB in the country. Funding will be limited to half of the overall project cost. loan is part of a €200 million financing package, with a second tranche of €100 million expected to be signed in 2025. The projects aim to make road travel easier and safer, covering various road networks and infrastructure improvements across Cyprus, with completion expected by 2029.
The European Investment Bank (EIB) has been actively financing road infrastructure projects in Cyprus for several years. Since 1998, the EIB has contributed over €570 million to Cyprus’s road networks. This include €112 million loan in 2021 for road projects in Nicosia, Limassol, Paphos, and the Vasilikos Energy Centre Road. An €80 million loan in 2011 for upgrading the A1 motorway, improving access to Limassol’s port, and installing traffic monitoring equipment and a €100 million loan in 1999 for the upgrade of three major road projects, including the Dhekeli–Protaras motorway, the extension of the Nicosia–Troodos motorway, and the Limassol bypass.
These investments are aimed at enhancing social cohesion, economic growth, and improving the daily lives of Cypriots through better mobility, safety, and resilience to climate change. The projects are designed to address critical bottlenecks, improve connectivity, especially to isolated areas, and reduce fatal road accidents. These financings reflect the ongoing commitment of the EIB to support Cyprus in developing its infrastructure, focusing on sustainability and safety in road travel.
Cyprus’s infrastructure funding involves a combination of national resources, European Union (EU) funds, and international financial institutions like the European Investment Bank (EIB). Cyprus has been allocated around €1 billion in grants from Recovery and Resilience Facility (RRF), with a focus on digitalization, green investments, and infrastructure.
European Fund for Strategic Investments (EFSI) has provided financing for projects in Cyprus, including infrastructure, with a total financing of €152 million triggering about €401 million in additional investments. Funding from programs like Horizon Europe, the Digital Europe Programme, and the Connecting Europe Facility also supports various infrastructure developments, particularly in digital and transport sectors.
Infrastructure funding in Cyprus has been targeted towards improving connectivity, digital transformation, and environmental sustainability. Projects range from transport networks, digital infrastructure, to water management and energy efficiency The focus has also been on making infrastructure more resilient to climate change and natural disasters, with initiatives like the KIOS Centre of Excellence developing digital solutions for protecting critical infrastructure.
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