Cyprus has so far received €568 million from the European Union’s Recovery and Resilience Facility (RRF), with the next disbursement expected soon, according to Finance Minister Makis Keravnos.

Speaking during the inauguration of new student residences in Nicosia, a project completed with EU financing under the Recovery and Resilience Plan (RRP), Keravnos said the plan will bring around €1.2 billion to Cyprus by 2026.

It is being implemented through 135 measures, reforms and investments, divided into five policy axes, and involves more than 70 public and broader public sector bodies, aiming to meet 271 milestones and objectives.

According to the minister, Cyprus has already received €568m for the first five grant tranches and pre-financing, corresponding to 53 per cent of the total €1bn in grants available to the island.

He also revealed that the request for the sixth tranche, worth about €61m, is currently under evaluation by the European Commission.

Keravnos said that the new student residences are part of the broader RRP measure for the ‘Regeneration and Revitalisation of Nicosia Inner City’, which carries a total budget of €18m (excluding VAT).

This measure includes two key components. The first component, implemented by the Municipality of Nicosia, involves the purchase and renovation of buildings within the Nicosia Inner City to be adapted into student dormitories, allocated a €7 million budget.

The second component is a grant scheme for converting existing rooms into student accommodation, which is implemented by the Department of Town Planning and Housing with a budget of €11 million.

Describing the dormitories as “a model of effective utilisation of state and European funding,” Keravnos said the project represents “a productive cooperation between the government, the local authorities and the academic community, resulting in a great social benefit.”

Addressing the students and their families, Keravnos said the government recognises the growing difficulties in finding affordable housing and coping with rising living costs.

“The government’s priorities are to relieve you in various ways from the financial burden, both for you and your families,” he said.

Keravnos further stated that “it is a great pleasure to inaugurate a project that confirms the government’s support for the new generation and our students, and to see the goals of all of us becoming actions and projects for the benefit of the citizens, society and the economy of our country.”

He said that the project also reflects “a policy that embodies a sustainable and socially sensitive economic direction”.

“Every investment in education is an investment in human capital, the most valuable asset of our small homeland,” he added.

Beyond the student housing initiative, the RRP also supports several other development projects in the capital.

Among them is the urban flood protection project, with a total budget of €14m, aimed at ensuring robust infrastructure to protect Nicosia from flood risks.

Works have already been completed in Ayios Antonios, Lycabettus, Trypiotis, Ayioi Omologites and central Nicosia, while construction in Pallouriotissa and the city centre is expected to finish by August 2026.

Keravnos also pointed to the complementarity of European funding sources and the synergies with the Cohesion Policy Programme ‘Thaleia 2021–2027’, under which ten projects worth €73m are being implemented across the enlarged Municipality of Nicosia.

These include the restoration of the old municipal market into a research and innovation centre (€8m), the development of smart city infrastructure and systems (€8m), and the redevelopment of the creative enterprise district area (€5m).