Filenews 30 November 2024 - by Angelos Nicolaou
A total of 19 road infrastructure projects, with a total cost exceeding €411 million, are planned for financing by the European Investment Bank (EIB). These are mainly small and medium-scale projects, but also two large projects over €80 million. The Department of Public Works following the approval of the EIB loan of €200 million. to the Republic of Cyprus for the financing of road infrastructure projects, has prepared an indicative list of potential investment projects to be financed.
The funding concerns, inter alia, the construction of a Nicosia-Troodos motorway (Astromeritis-Evrychou section, Phase D) costing €88.63 million, a project to be completed in 2025.
Under study, in a tender process with construction period 2026 – 2029, is Phase C1 of the Nicosia-Troodos motorway (section Akaki-Peristerona, costing €70 million).
Another project concerns the construction of a Nicosia-Palaichori motorway (section Anayia-Kalo Chorio) costing €77.64 million, to be completed in 2026.
Phase B3 of the Nicosia perimeter motorway (Makarios III Lakatameia Avenue – Nicosia/Palaichori Road) costing €42.60 million is also included. Project which is under study, in tender process for construction 2025 – 2028.
A project that may be co-financed is the ongoing improvement and construction of Ippokratous and Argyroupoleos avenues and part of Strovolos / Tseriou Avenue in Strovolos and Lakatameia costing €30.70 million which ends in 2025.
Under study, in the tender process for construction 2026 – 2029 is the Primary Road that will connect Strovolos Avenue with Archangelos Avenue, construction of 2 new bridges on Pedieos River and improvements to the existing secondary network of the area (Vosporos, Arch. Kyprianou, Alexandroupoleos, Kanari, Eleonas, M. Botsari, Makedonitissis in Strovolos) costing €18 million.
The improvement of the Larnaka-Dhekelia coastal road Phase C (Section from the Nautical Club to the junction to Pyla) costing €17.66 million, which will be completed in 2025, is also significant.
Under construction, with completion in 2025, is the project for the improvement of the Sotira – Deryneia road costing €15.9 million.
Under construction, with completion in the period 2024 – 2029 and a total cost of €8 million. is the improvement of the following junctions for road safety purposes:
● Emba roundabout, Paphos
● Kissonerga – Peyia roundabout, Paphos
● Special lane right turn on Strovolos Avenue, Nicosia
● Erimi roundabout, Limassol
● Meneou roundabout, Larnaca
● Oroklini roundabout, Larnaca
● Improvement of Nisou interchange, Nicosia.
The upgrade of the avenue within the Municipality of Tseri is also to be financed, costing €7.01 million, a project that is in progress and is completed within the year.
Furthermore, the installation of motorcycle barriers on the Nicosia – Limassol Motorway (A1), costing €6.5 million, is under study. The project is in the process of tendering for construction in the period 2025 – 2028.
It is noted that the Council of Ministers, at its meeting of 25 November 2024, approved the proposal for the conclusion of a loan agreement of up to €200 million with the European Investment Bank. This funding concerns a series of important road infrastructure projects of the Ministry of Transport, Communications and Works aiming at enhancing sustainable urban mobility and developing road infrastructure in areas of Cyprus.
EIB financing covers 50% of the total estimated cost of the projects and consists of a framework loan aimed at supporting the Ministry of Transport, Communications and Works in implementing a multi-year programme of infrastructure investments, including road construction and upgrading, in programmes supporting the implementation of Sustainable Urban Mobility Plans (SUMPs), road safety, road network management, enhanced connectivity, as well as climate resilience and adaptation measures. The projects under funding, some of which are already under construction, are expected to be implemented during the period 2024 – 2029. It is further noted that some of the projects may be co-financed by EU co-funding from the Connecting Europe Facility and the Cohesion Policy Programme THALEIA 2021-2027. Due to the type of loan framework, there will be flexibility in the projects to be financed.
The Ministry of Finance, taking into account that the projects under funding will bring significant public benefits since they will significantly improve road transport infrastructure in Cyprus, thus enhancing sustainable urban mobility, road safety and the development of less developed areas, considers it very important to ensure adequate funding in order to proceed with their implementation. The EIB offers more favourable financing terms than any other form of internal or external financing, so signing a loan with this Bank to finance the above-mentioned road projects provides a significant economic benefit for the Republic of Cyprus. The EIB provides long-term loans with long grace periods and low interest rates, while the proposed loan of up to €200 million provides for a grace period of 5 years and a long repayment period of 25 years.
List of potential investment projects to be financed
1) Construction of Nicosia – Troodos Motorway (Astromeritis – Evrychou section
2) Construction of Nicosia – Palaichori Motorway (section Anayia – Kalo Chorio)
3) Nicosia Perimeter Motorway
4) Construction of Nicosia – Troodos Motorway (Akaki – Peristerona section)
5) Improvement of the existing road Pafos – Polis Chrysochous
6) Upgrading of the avenue within the Municipality of Tseri
7) Improvement and construction of Ippokratous and Argyroupoleos avenues and part of Strovolos / Tseriou avenue, in Strovolos and Lakatameia
8) Improvement of Larnaka – Dhekelia coastal road
9) Improvement of Sotira-Deryneia road
10) Upgrade/Repair of the Kalavasos bridge on the Nicosia – Limassol Motorway
11) Noise barriers on the Nicosia – Limassol Motorway (
12) Installation of Street Lighting at Interchanges of Nicosia – Limassol Motorway
13) Tunnel Upgrade – Limassol – Paphos Motorway
14) Installation of Emergency Doors on 5 Motorways of the National Network
15) Construction of stabilization measures for part of the old Pafos – Limassol road (B6) next to Petra tou Romiou
16)Improvement of junctions for road safety purposes
17) Installation of motorcyclists' protective barriers on the Nicosia – Limassol Motorway
18) Construction of a Primary Road connecting Strovolos Avenue with Archangelou Avenue
19)Installation of ITS speed signs & radar
€500 million in loans in the field of transport by the EIB
The signing of a €200 million loan agreement This is the fourth loan approved by the EIB in the transport sector. To date, three loans have been concluded between the Republic of Cyprus and the EIB, totalling €292 million:
• In 1999 the first Loan Agreement of €100 million was signed. to finance the construction of the Limassol Bypass Interchanges, Nicosia South Bypass and the extension of the Nicosia-Kokkinotrimithia Motorway to Morphou and Troodos.
• In 2011 the second Loan Agreement of €80 million was signed. to finance the widening of the Nicosia-Limassol Motorway from GSP Stadium to Agia Varvara, the construction of two Interchanges and a Road of Primary Importance connecting the Limassol Port with the New Limassol General Hospital, and
• In 2021, the third Loan Agreement of €112 million was signed. to finance the construction and/or improvement of four motorways (Nicosia Perimeter Motorway, Limassol-Saitta Motorway, Paphos-Polis Chrysochous Motorway and Vasilikos Energy Centre Road Network), as well as the photo-labelling system for road safety purposes.
