Following critical statements by the municipalities of Strovolos and Lakatamia, the government has rejected accusations of unfairly allocating funds from its €1 billion development scheme, denying claims of favouritism toward Nicosia’s city centre.

Responding to the “unfounded claims made by the municipality of Strovolos”, the government said it had allocated funds for an energy upgrade of the municipal hall, studies and constructions in the Strovolos industrial area to address flooding problems and for the establishing of a transfer station serving Strovolos, Lakatamia and Nicosia.

Additionally, it pointed to designated urban development plans including the creation of sidewalks, bicycle lanes and improvements to green spaces.

“In regard to the three questions of the mayor of Strovolos and the claim that no answers had been given to him, it is noted that all the issues were discussed,” the statement read, stressing that the mayor and a government official had held a private conversation on the respective matters after the meeting.

The statement added that if unequal treatment truly existed, the government would not have held “multiple meetings” with municipal authorities over the past two years.

“The government assures that it treats all municipalities and communities equally,” the statement concluded.

The Strovolos municipality on Tuesday accused the government of neglecting the area in its announcement of over €1 billion worth of development projects for the Nicosia district, saying its residents were being treated as “second-class citizens”.

“Not a single euro” of the €1 billion funding-plan for the capital had been allocated for cultural, sports or social projects in Strovolos, the municipality said in a statement on Tuesday evening.

The plan was announced on Monday evening by President Nikos Christodoulides and follows similar announcements for other areas of the island.

With funding limited to roadworks that serve transit traffic rather than local needs, Strovolos municipality – the third largest in Cyprus – said residents were once again being ignored.

The municipality criticised the allocation of funds for central Nicosia ahead of the 2026 EU presidency, while Strovolos had been left without receiving any funding.

In his outline of projects, Christodoulides had only accepted three suggestions put forward by Strovolos Mayor Stavros Stavrinides.

It also expressed frustration over a lack of updates on stalled funding plans and the delayed concession of the former Strovolos co-op building, warning the project may be diverted from its intended purpose.

Furthermore, it condemned the announcement of a road project on Hadjiiosif-Stavrou Avenue saying it had been announced without council approval or community consultation.

“The municipality of Strovolos, the municipality with the huge and timeless problems, will continue to vigorously claim what it is entitled to,” the statement read.

The municipality of Lakatamia followed the criticism with a statement on Wednesday, equally expressing disappointment over the lack of new projects allocated to that area. The mayor and deputy mayors said none of their proposed infrastructure projects were taken into account, calling for fairer state support, urging the president to follow through with a promised meeting to address their concerns.