The United States State Department said on Thursday it “welcomes” the mutual understanding found to solve the dispute surrounding the buffer zone village of Pyla and construct a road from there to the village of Arsos.

State Department spokesman Matthew Miller said the department “commends the work of the sides and the UN and urge next steps to build confidence”.

The mutual understanding will see construction on the road commence on October 23, while 400 plots of land north of Pyla will be converted into residential properties and a large solar farm is set to be built in a vacant area northwest of the village.