Filenews 20 October 2024 - by Angelos Angelodimou
The Recovery and Resilience Plan is proving beneficial for the economy, businesses and consumers, according to what was mentioned at an event to present the progress of the implementation of the plan last Tuesday.
The Director of the Recovery and Resilience Directorate in the Directorate-General for Development, Anthoula Savvides, made a thorough analysis of the progress of the implementation of the Plan, pointing out, inter alia, that Cyprus has voted -through Parliament- for 60% of the legislation related to milestones of the Plan.
Regarding the financial implementation of the plan, he said that about 90% of the budget has been activated and 55% (€660 million) have been committed to contracts with contractors or final recipients.
The impact of the plan on business is also positive. As Andreas Andreou, Director of the Department of Industrial Development, Innovation and Environment of the CCCI, characteristically stated, the efforts of businesses for digital and green upgrading are largely covered by the plan.
However, Finance Minister Makis Keravnos himself noted in his speech that there is still a long way to go for the most effective, possible and optimal use of the resources of the Recovery and Resilience Facility.
More specifically, in her presentation, Savvides noted that of the 23 pieces of legislation that have already been voted, 2 concern the green transition, 6 the reform of the public service and local government, 3 the fight against corruption, 4 concern the financial sector and tax issues, 3 concern investments and the facilitation of licensing. 3 on employment, social welfare, education and the rest on other reforms.
Regarding the financial implementation of the plan, Savvides added that about 90% of the budget has been activated and 55% – €660 million – have been committed to contracts with contractors or final recipients. Grants were made under sponsorship schemes and an amount of about €280 million has already been paid, much higher, as he said, than the amount received from the European Commission.
Payment Requests & Disbursements
∙ €157million – 9 September 2021 – Disbursement of RDP Advance.
∙ €85million – December 2, 2022 – Disbursement of 1st tranche (14 milestones / targets). The submission of the 1st request had taken place on July 28, 2022.
∙ €21million – 25 January 2024 – Advance disbursement for REPowerEU.
∙ €152 million – 15 December 2023 – Submission of a 2nd request for the disbursement of the 2nd and 3rd tranches (38 Milestones / Targets).
∙ €77 million – 3 July 2024 – Submission of a 3rd request for the disbursement of the 4th tranche (16 Milestones / Targets).
Benefits of the plan
Mrs. Savvides made special reference to the presentation regarding the benefits that emerged from the plan to citizens, households, businesses and organizations.
Support for households/citizens: 30,000+ households were helped to use RES and save energy, of which 3,300+ vulnerable energy consumers, 2,600+ citizens to buy electric vehicles / withdraw & replace polluting vehicles, 320+ households to install PV for electric vehicle charging. 70,000 households to upgrade their connectivity to gigabit – ready networks.
Population benefiting from public investment:
1,200+ people can be served annually in new/modernized/upgraded healthcare facilities.
Installation of photovoltaic systems in 405 schools. 7,500+ residents benefit from flood protection projects. 400+ participations in capacity building programs for local government.
Upgrade digital equipment in 700+ schools.
35+ new digital services in the public sector.
6,000+ participants in trainings on green, blue, digital and entrepreneurial skills.
100+ new places in modernized childcare and education facilities.
Support for businesses and institutions:
16+ hospitals were supported for the purchase of new medical equipment.
120+ businesses for the purchase of electric vehicles / withdrawal & replacement of polluting vehicles.
20+ businesses and non-profit organizations for integrated energy upgrades.
260+ businesses and other entities for investments in research and innovation.
120+ dining / selling traditional products for upgrades and renovations. 80+ Local Authorities and other bodies to enrich the tourist product (revival of authentic experiences).
50+ hotel units in the circular economy. 20+ agribusiness processors.
Regarding the next steps, Savvides referred to the requests for the disbursement of the 5th and 6th tranches of the grant from the Recovery and Resilience Facility and the new amendment of the Cyprus RDP to address new issues that have arisen in order to facilitate the timely implementation of the Plan.
Lightning: We have a way...
Despite the significant results achieved, there is still an important way to go to make the most effective and optimal use of the resources of the Recovery and Resilience Facility (RRF), said Minister of Finance Makis Keravnos. He noted that with the future disbursement of the fourth tranche, Cyprus' total receipts from the European Mechanism, from 2021 onwards, will amount to approximately €500 million, i.e. approximately 50% of the total allocation of the Mechanism grant for Cyprus.
The next goal by the end of the year, he said, is to submit the application for the disbursement of the 5th grant tranche, for another €120 million.
"We are implementing an ambitious Plan, which concerns significant investments to strengthen the resilience of the economy with the main objective of economic, social and environmental sustainable development," he noted.
What has been done and what needs to be done in the field of Health
The theme chosen to be highlighted in the presentation of the Recovery Plan concerned the health sector.
Referring to the chapter "Public health and civil protection", Savvidi noted that out of a total of 19 objectives, 13 are to be implemented, 3 have been completed and the other 3 are in payment request. The completion rate stands at 32%.
In relation to the important interventions that have been completed / are being implemented, Mrs. Savidi focused on the following:
Reforms – Gradual introduction of a quality-based reimbursement model in primary and nursing care – Completed.
Public Investments – Improvement, modernization and upgrading of public hospitals – In Implementation – Creation of new Blood Center facilities and supply of state-of-the-art auxiliary equipment – In Implementation – Innovative Public Health Information and Communication Technologies (ICT) System of Cyprus – Towards Completion – Development of general cross-border eHealth services in Cyprus – In Implementation.
Subsidy Schemes – Modernization of medical equipment – In Implementation.
Dr. Christina Giannaki, Director General of the Ministry of Health, also pointed out that the pandemic has highlighted the need for significant reforms in the country's health system. Through the projects of the RRP, the quality upgrade of health services is promoted, with the aim of ensuring the resilience of the system.
He also referred to significant investments, such as the strengthening of public hospital infrastructure and the development of e-health projects. He also referred extensively to the creation of the National Center of Clinical Excellence and the first phase of the Mental Health Hospital.
Only 22% of available funds
Director General of the European Commission's Recovery and Resilience Team Celine Gauer commended Cyprus for the progress it is making in implementing reforms and investments under the EU's Recovery and Resilience Facility, but underlined the significant challenges that remain as the 2026 deadline approaches.
In her speech at the event, Gauer referred to the achievements and challenges of the EU Recovery Facility, with an emphasis on Cyprus.
Although the EU has already disbursed €267 billion, Cyprus has absorbed only 22% of the available funds, he said.
However, he expressed optimism that the country would catch up by early next year, reaching 50%. Although 60 percent of the reforms have already passed parliament, he noted, the remaining 40 percent are critical and require major efforts.
Among the challenges he mentioned are early childhood education, water management and tax reform.
