Cyprus, EIB sign agreement to fund island roadworks

By Rebekah Gregoriades

The vice president of the European Investment Bank (EIB), Kyriacos Kakouris, on Friday signed the first €100 million tranche of a new €200 million loan to Cyprus. The loan will partially fund a series of roadworks.

The signing ceremony took place at the finance ministry, with Finance Minister Makis Keravnos and Transport Minister Alexis Vafeades also in attendance.

Keravnos described the agreement as more than a financial transaction, emphasising its alignment with a shared vision for Cyprus’ future in terms of development, sustainability and connectivity. He stated that the projects, with a total cost of approximately €400 million, would be implemented between 2024 and 2029.

Some, he said, had already started and others were to be co-funded by the EU.

Keravnos said this loan was the fourth from the EIB for the communications sector, bringing total funding from the bank in this area to €492 million.

Vafeades said the new loan agreement offered the necessary flexibility in choosing projects for funding.

A total of 19 projects have been proposed for funding under the new loan, he added. The minister said the funded projects would address various road network issues, such as access to remote areas and reducing accidents.

The new loan will be used to build phase B3 of the Nicosia ring road, with an investment of €35.6 million, to meet the needs of the capital and the surrounding municipalities and communities. The loan will also fund the Nicosia-Troodos and Nicosia-Palechori motorways, with a combined budget of €235 million, enhancing accessibility and fostering social cohesion.

Other projects include urban mobility with €90 million and specialised infrastructure for drivers, cyclists, pedestrians and people with disabilities.

“All projects aim at road safety,” Vafeades said.

Kakouris called the first tranche a testament to the joint commitment to building better, safer, and more sustainable infrastructure that will significantly improve the daily lives of Cypriots.

Earlier, the EIB described the agreement as an “important milestone” in its support towards Cyprus, with emphasis on sustainable infrastructure and the promotion of growth.

Since 1981, the bank has invested €5.6 billion in the country, focusing on areas such as water management, urban mobility, affordable housing, digital transformation and climate action.

The EIB noted that the loan offers favourable terms, including extended repayment periods and fixed interest rates.