Full steam ahead to get second tranche of EU resilience funds

The finance ministry’s general directorate for development is steaming ahead to implement landmark projects to secure the second €85 million tranche of funds from the EU recovery and resilience plan, its head said on Friday.

Speaking to the Cyprus News Agency, Anthoulla Savvides told CNA that there seems to be no limit to “difficult policy matters.”

She added that after submitting the application for the disbursement of the first tranche on July 28, the whole process was being reviewed by the European Commission and will subsequently be reviewed and approved by EU institutions, with the actual payment requiring at least three to four months to take place.

So far six out of 18 milestones have been achieved, another four will be achieved in the immediate future, while the remaining eight are in progress or are being implemented.

“Measures to expedite them in cooperation with the implementation authorities are taken where possible so as to have them completed on time with the submission of the payment application,” she added.

The milestones achieved so far concern incentives for investments and human capital in the field of research and innovation enacted via a bill establishing tax exemption for corporate investors (legal entities) that invest in innovative businesses.

Efforts to improve the legal framework fighting corruption has also been achieved with the law establishing an independent anti-corruption authority.

Moreover, strengthening the national regulatory authority as well as establishing an online cloud computing platform to improve trade and information symmetry in the fresh produce supply chain has also been achieved.

The strengthening of the administrative capacity and improvement of public administration’s operation for better policy formulation and implementation was also achieved with the cabinet’s approval of the Action Plan for the effective management of human resources in public administration.

At the same time, the signing of contracts for the digitisation or digital upgrade for several ministries and departments of the central government led to the digital transformation of the central government as well.

Savvides also said that the process up to the application’s submission requires parallel implementation by the national audit bodies and the Coordinating Authority of verification and controls, so as to secure the absorption of all resources available, to confirm the achievement of goals and also the correctness and regularity of the acts funded by the recovery and resilience mechanism.

“Our aim is to submit the second payment request within 2022’s fourth quarter in accordance with the SAAs Operational Regulations signed with the Commission,” she added.

Moreover, she pointed out that given many of the second tranche milestones concern tender offers, unpredictable situations may be faced, such as appeals to the tender review authority which may affect timetables.

She did note however that “necessary checks for all milestones completed begin immediately so that in case there is a delay with one of them, as it happened with the first application, we are ready to immediately check it and complete the entire internal process of preparation and audit of the application until its submission.”

The second application concerns an additional €85 million. Thus far, €157 million has been disbursed another €85 million is expected in November/December 2022 as part of the first application.