Filenews 26 May 2024 - by Eleftheria Paizanou
Despite the changes in the Recovery Plan and the delays observed for its implementation, Cyprus has managed to promote important reforms, launched public investments by announcing or signing a number of contracts, some of which are in progress, while some other projects have been completed.
In addition, more than 40 sponsorship schemes have been announced and private sector investments have proceeded, while other schemes will be implemented in the coming months.
The amount that will be made available through the grant schemes funded by the Recovery Plan amounts to €460 million.
Reforms
"F" presents the reforms made through the Recovery Fund, which will contribute to the modernization of the functioning of the state. This is despite the problems identified for the implementation of some reforms, such as those of Local Government and Public Service.
– In detail, the reforms that the EU was committed to promoting include the improvement of the legal and institutional framework for the fight against corruption, with the adoption of relevant legislation and the establishment and operation of the Independent Authority against Corruption, an effort that was crowned with success.
– Also, the legislative framework for the new process of evaluation, recruitment and promotion of employees in the Public Service was adopted. However, following pressing complaints by public sector employees, an attempt is being made by coalition parties to temporarily alter the evaluation system for a period of two years, so that the criterion of employee evaluation has less weight (than that provided for by the new legislation) in the overall rating of employees.
– In addition, the legal framework for the management of non-performing loans was strengthened, as well as the digitalization of licensing procedures for RES projects.
Projects
Among the investments that have been completed are the operation of the Infectious Diseases Unit at Famagusta Hospital, the completion of the construction of the dialysis unit in Paphos, as well as the purchase and installation of new equipment at the State Laboratory.
Apart from the health sector, which includes a number of other interventions that are in advanced implementation (e.g. new Mental Health hospital), a number of investments have been completed in the other areas supported by the Recovery Fund, such as the expansion of the Famagusta District Court, the operation of a Child Care Centre in Agios Athanasios, Limassol, the completion of a number of flood protection projects in Nicosia Municipality, as well as the installation of photovoltaic systems in 405 schools in all cities of Cyprus.
Through the Recovery Plan, Cyprus aims to strengthen the resilience of the economy and the country's potential for social and environmentally sustainable long-term growth and prosperity.
How much money did Cyprus receive?
Through the Cyprus Recovery Plan, the country is expected to disburse €1.2 billion by 2026. So far, Cyprus has disbursed €262 million. from the European Fund.
Specifically, in September 2021, it was granted an advance payment of €157 million and in December 2022 disbursed the 1st tranche, amounting to €85 million, after having previously implemented 14 milestones.
Last December, a request for payment was submitted by the Republic for the 2nd and 3rd tranches, which is under evaluation by the European Commission. These two tranches amount to €152 million. and are expected to be disbursed later this year
It is worth noting that for the 2nd tranche 16 prerequisites were implemented and for the 3rd tranche 22 milestones.
In January 2021, Cyprus was granted the advance payment from REPowerEU, amounting to €21 million. It should be noted that the inclusion of the new REPowerEU Chapter in the Recovery Plan was included after the change of the Plan. The country will receive an additional €104.6 million for the implementation of the measures referred to in that Chapter.
Finally, the submission of payment requests for the 4th and 5th tranches for the disbursement of a total amount of €197 million is expected soon.
