Filenews 23 January 2023 - by Angelos Nicolaou
Strong investment interest from China has emerged for the creation of a Technology Park in Pentakomo, according to the Limassol Chamber of Commerce & Industry. The clear signs of attracting investment interest have led the government to give this issue another chance to the advent of high-tech companies. For the first time, it was decided, instead of proceeding with the failed practice of tenders, to conduct a public consultation in anticipation of investment interest from abroad for the Technology Park, the creation of which is expected to contribute substantially to the development of research and innovation.
As part of the public consultation, it has been decided to present its content on Wednesday 25 January 2023 at 4pm at the Chamber's offices in Limassol. It is emphasized that the last day of submission of comments is Friday, February 10, 2023 at 2pm at the e-mail address ltheodorou@meci.gov.cy.
The Ministry of Energy estimates that this effort will reveal the reasons why investors do not show interest in the conduct of tenders, who seek direct award of the project. After the comments from the public consultation have been recorded, the Minister of Energy will have the last word who will determine the further policy.
In order to participate in the tendering procedure, interested economic operators must meet requirements relating to their technical and professional ability. That is, to have successfully completed at least one project related to the Design, Construction, Management and Operation of a Technology Park and with a participation rate of at least 30% in a contract. Alternatively, interested parties may have successfully completed at least two contracts for the construction of large-scale projects of more than 20,000 square meters of covered area each or at least €10 million contract value each and with a participation rate of at least 30% in each contract.
In accordance with paragraph 37 of the Law on Public Procurement Procedures, any contracting authority may publish a public consultation procedure in order to ensure transparency, fairness and non-discrimination in the preparation of the tendering procedure.
Through the ongoing public consultation, the Government of the Republic of Cyprus sends the message that it supports the establishment of the Science and Technology Park, as a key infrastructure for the promotion of applied research, innovation and high technology, including digital, information and communication technologies in Cyprus. The ultimate goal is to contribute to the diversification of the Cypriot economy and the transformation of Cyprus into a regional centre of applied knowledge.
The fundamental goal of the Technology Park is to increase the wealth of the country by promoting the culture of innovation and the competitiveness of the companies and institutions that will join or are associated with the Park.
According to the purpose of the land expropriation decree, the Technology Park could host organizations such as Research Centers, Business Incubators and other Enterprises, Organizations, Institutes that focus on knowledge and applied research. In addition, it will transfer knowledge and technology between Universities, Research Institutions, Companies and Markets.
In other words, the Science and Technology Park:
• It contributes to the creation of wealth in the region through the establishment of companies such as technology, research, innovation and with high growth potential.
• Stimulates investment in technology, research and innovation companies.
• Increases the growth rates of companies based on technology, research and innovation.
• Increases the employment rate, especially of the skilled.
• Strengthens relations between businesses and knowledge producers, universities, institutions and research centres.
The Science and Technology Park will be an integrated and organized development that will provide all the necessary facilities for Research, Academic and Incubator Centers as well as for high-tech enterprises. It will also include areas for setting up businesses in an attractive technological environment. Science and the Technology Park will also offer technology transfer as well as business support. In this way, all locations and infrastructure of development will allow development from the stage of generating ideas to the stage of production (research, incubation, production).
17 years in the waiting
In 2006, the initial political decision for the development and operation of the Science and Technology Park in Pentakomo was taken by the Council of Ministers. Since then, the Government of the Republic of Cyprus has taken several actions for the implementation of the project. Over time, the government faced financial constraints and therefore decided to reduce the size of the expropriated land and move it to the southern region of Pentakomo, in order to achieve zero cost of ownership for the state. The government has published several calls for tenders since 2016 and organized many promotional events abroad in order to attract a strategic investor for the development of the Park without results.
The Ministry of Energy, after examining the reasons for the lack of interest, considers that this is due to two possible reasons or a combination of them:
a) Effectiveness of the incentives given by the government.
b) The early stage of the research and innovation ecosystem in Cyprus, which entails the non-existence of support services such as the Technology Transfer Office.
Therefore, the Ministry of Energy, Commerce and Industry has launched the current public consultation in an attempt to identify the reason why previous attempts failed and to bring together all proposals to help revise and improve the stimulus package.
It is noted that due to a court appeal, the last expropriation decree was annulled, so the total available expropriated land today is about 200,000 sq.m.
It is noted that previous tenders concerned the submission of bids by interested strategic investors for the lease, for a period of 50 years, of state land of approximately 328,000 sq.m., which is intended for the development of the Park in the coastal area of Pentakomo, in the Limassol district. Based on 2016 estimates, the amount of the investment was expected to reach €135 million.
The Science and Technology Park is planned to bring together enterprises that are intensively involved in activities in new sectors of the knowledge-based economy. The primary goal is for the Science and Technology Park to contribute to the creation and development of new enterprises that will participate in the production of innovative high-tech products. These products will have the potential to create positive effects on the economy. The operation of such enterprises is aimed at facilitating the process of turning technological results into business action.
INTERVENTION
Work pending for decades
Today's development gives another opportunity for the Scientific and Technological Center to become a reality. The truth is that since it has been decided, three Presidents of the Republic have already changed (Tassos Papadopoulos, Demetris Christofias, Nicos Anastasiades) and we are going for the fourth one. With the advent of high-tech enterprises in Pentakomo, it will be important to contribute to the fields of research and innovation technology for the whole of Cyprus. If the interest of the Chinese in the project is confirmed, the government is expected to decide the procedure to follow in order to achieve the best possible result in finding an investor.
