Filenews 24 August 2021
The agreements between Cyprus and the European Commission on EU funding of the Recovery and Resilience Plan (SDS) were approved by the Council of Ministers during its meeting on Monday, said the Director General of the Directorate General for European Programmes, Coordination and Development Theodosis Tsiolas, while mentioning that finance minister Konstantinos Petrides is now expected to sign the official agreement document which will then be sent to Brussels for submission by the European Commission.
Through the Recovery Plan, the Republic of Cyprus will use €1.2 billion in resources for projects and reforms to be made available to Cyprus for the period 2021 – 2026 by the EU Recovery and Resilience Facility. The amount concerns an EU grant of €1,006 billion and additional funding from the Facility of approximately €200 million in the form of a loan.
Mr Tsiolas also said that the Commission has up to two months to pay Cyprus the advance amounting to 13% of the total amount of funding of €1.2 billion or to the amount of approximately €156 million.
However, Mr. Tsiolas told CNA that important in the first half of the year, which ends at the end of 2021, is the implementation of the measures concerning the first objectives and milestones of the Recovery Plan in order to disburse the first tranche by the Commission (in addition to the advance payment).
He said it was important for the House to approve bills to reform the public service and anti-corruption bills, as well as projects to upgrade the courts.
Mr. Tsiolas stressed that if these important reforms do not go ahead, then the disbursement of the entire first tranche will be suspended.
He also referred to the bill on Local Government concerning the extension of the term of office of existing local authorities, which will be discussed on September 9th in the Parliamentary Committee on the Interior.
Preparation of an information system for the Recovery Plan
Moreover, according to information provided by the CNA, an information system is currently being prepared for the Recovery and Resilience Plan through which, among other things, the promoters of the Plan's measures will inform the Coordinating Authority, which is the General Directorate for European Programmes, Coordination and Development, of the progress of the implementation of their measures, while it will be accessible to all stakeholders such as monitoring bodies and control authorities.
It is an information system of monitoring through which, according to the same information, the coordinating authority will receive the necessary information in order to prepare and submit accordingly the relevant progress report to the European Commission in order to monitor immediately and more correctly the implementation of the measures and the achievement of the objectives and milestones set through the Plan, with a view to the immediate recovery of available resources from the EU.
The development and operation of the system by the end of the year is one of the measures of the first targets and milestones included in the Recovery Plan in order to be checked by the Internal Audit Service afterwards and to be fully operational within the first quarter of 2022.
The Information System must be developed and checked before the European Commission pays the 2nd payment to the Republic of Cyprus (1st payment concerns the advance payment), with the achievement of the first milestones of the SDS by 31/12/2021, as defined in the Plan. The positive evaluation by the Commission as to the achievement of the predetermined objectives and milestones of the Plan is a prerequisite for the payment of the grant.
At 14 measures for the first targets and milestones by the end of 2021
The measures concerning the first targets and milestones, which should be completed by the end of 2021, amount to 14, including the information system, and concern, among others, bills for public service reform, anti-corruption bills, court upgrade projects as well as measures contributing to green growth.
According to information, in order for Cyprus to be able to receive the first disbursement, which amounts to around €65 million (in addition to the advance already received by the country), all 14 targets/milestones will have to be achieved by the end of the year. According to the Regulation establishing the Recovery and Resilience Facility, if the European Commission, when examining the submission of each request for funding, finds that the milestones and objectives have not been satisfactorily met, then the payment of all or part of the financial contribution is suspended by a relevant decision of the Institutions of the European Union.
It is noted that of the 14 objectives and milestones mentioned, two have already been achieved concerning the promotion of the circular economy through an action plan approved by the Council of Ministers and the promotion of the use of RES and energy upgrades in residences through a sponsorship plan of the Ministry of Energy.
Source: Philenews/CNA
