The cabinet on Wednesday approved extraordinary state aid of eight million euros for a year to the local district organisations (EOA) for the management of water in the wake of the acute shortage.

“We are investing in solutions [to] support local infrastructure and strengthen [efforts] for sustainable and adequate water management in a period of increased pressures due to the climate crisis,” Agriculture Minister Maria Panayiotou said.

The minister announced that EOAs and communities had been allocated the €8 million amount to be used towards upgrading ageing supply networks. An added provision of €1 million per annum for a three-year period had been earmarked for remote areas that fall outside the EOAs jurisdiction for the same purpose.

A subsidy for the installation of small private desalination units in hotels and a simplified licensing framework for them had also been approved, the minister said.

Panayiotou stated that the government is proceeding “with dedication and targeted measures” to resolve the chronic and sizeable water losses from networks under the EOAs responsibility, “estimated at [a ratio of] approximately 35 per cent to 40 per cent”.

The outdated networks “unfortunately had not received proper repair to date” she said.
Funding for upgrades to the local supply network will come mainly from European funds, the minister added.

The decision constitutes “another targeted intervention to address water scarcity [and offers] practical support to EOAs and the communities”, she said.

Panayiotou also said that the annual provision of €1m for remote communities had been approved for the period 2025-2027.

As part of the packet of emergency measures cabinet had approved a €3m pay out in grants for the hotel industry to install small private desalination units to cover their water needs without burdening state supply, the minister added.

The greatly simplified licensing framework for small desalination units up to 1,500 cubic metres covers hotels, local authorities and also farmers who wish to install such units, Panayiotou said.

The minister urged local authorities who wish to install small desalination plants to contact the ministry to proceed. Their licensing and approval of financing had been fast-tracked to be completed within a week, she said.

The previously approved newly drafted national water plan entails investments of over €1.2 billion and a 28-point action programme to address the escalating water scarcity.