New concerns over the plan to redevelop the former Phaneromeni primary school site were raised by Finance Minister Makis Keravnos on Monday, who warned the current contract places an unfair burden on the state.

He said the agreement has been described as unbalanced by both the former auditor-general and the current one. He added that this makes it difficult for him to support a contract that he believes works against the interests of taxpayers.

Keravnos explained that the deal was reached between the government and the church.

Under the terms, the school would be renovated and a new large building would be constructed on state-owned land behind it.

He said the plan also includes structural upgrades to the underground area.

According to the minister, the state would have to cover the full cost of the renovation and the new building.

Despite this, the new facility would then be handed to the church. The church would own the building and would rent it to universities. The state would then benefit from those paying to attending the university.

He said this arrangement means taxpayers would fund both the construction and the rental costs of a building on state land that would not remain under state control.

Keravnos stated that he has spoken to the Archbishop, the Nicosia mayor, and the rector of the University of Cyprus.

He said the university’s rector has submitted a different proposal, which he has accepted.

The alternative plan calls for the renovation of the existing school complex while two research centres would move to the site, bringing 83 researchers to work there.

The location would also host meetings and events, making regular use of the space.

The minister said this proposal does not create an imbalance for any party.