Despite the changes in the Recovery Plan and the delays observed in its implementation, Cyprus has managed to promote important reforms and launched public investments by announcing or signing several contracts, some of which are ongoing, while some other projects have been completed.
In addition, more than 40 sponsorship projects have been announced and private sector investments have also proceeded, while more projects will be implemented in the coming months.
The amount to be made available through the sponsorship projects funded by the Recovery Plan is €460 million.
Reforms
Phileleftheros presents the reforms made through the Recovery Fund, which will help modernize the functioning of the state. This is despite the problems identified for the implementation of some reforms, such as the Local Government and Civil Service reforms.
–In detail, commitments were made to the EU for the improvement of the legal and institutional framework for the fight against corruption, with the adoption of relevant legislation and the establishment and operation of the Independent Authority against Corruption, an effort that has been successfully achieved.
–The legislative framework for the new procedure for the evaluation, recruitment, and promotion of civil service employees was also adopted. However, following pressing complaints from civil service employees, an effort is being made by opposition parties to temporarily modify the evaluation system for two years, so that the criterion of evaluation of employees will have less importance (than that provided for in the new legislation) in the general rating of employees.
–In addition, the legal framework for the management of non-performing loans has been strengthened, and the licensing procedures for RES projects have been digitized.
Investments
Investments completed include the operation of the Infectious Diseases Unit at Famagusta Hospital, the completion of the construction of the dialysis unit in Paphos, and the purchase and installation of new equipment at the State Chemistry Department.
In addition to the health sector, which includes several other interventions that are at an advanced stage of implementation (e.g. a new Mental Health Hospital), some investments have also been completed in other sectors supported by the Recovery Fund, such as the expansion of the Famagusta District Court, the operation of a Child Care Centre in Agios Athanasios, Limassol, the completion of many flood protection projects in the Nicosia Municipality, as well as the installation of photovoltaic systems in 405 schools in all cities of Cyprus.
Through the Recovery Plan, Cyprus aims to strengthen the resilience of the economy and the country’s potential for socially and environmentally sustainable long-term growth and prosperity.
How much money Cyprus has received
Through the Cyprus Recovery Plan, the country is expected to get €1.2 billion by 2026. So far, Cyprus has received €262 million from the European fund.
Specifically, in September 2021 it was granted an advance of €157 million and in December 2022 it received the first tranche of €85 million, after having implemented 14 milestones.
Last December, a payment request was submitted by the Republic for the 2nd and 3rd tranches, which is currently being assessed by the European Commission. These two tranches amount to €152 million and are expected to be disbursed later this year.
It is worth noting that for the 2nd tranche 16 pre-conditions and for the 3rd tranche 22 milestones have been implemented.
In January 2021 the advance payment from REPowerEU, amounting to €21 million, was granted to Cyprus. It should be noted that the incorporation of the new REPowerEU Capital in the Recovery Plan was included after the change of the Plan. The country will receive an additional amount of €104.6 million for the implementation of the measures under this chapter.
Finally, the submission of the payment requests for the 4th and 5th tranches for a total disbursement of €197 million is expected soon.
