Filenews 4 July 2025
The General Directorate of Development of the Ministry of Finance warns in a strict way that in case Makariou Avenue is opened without the approval of the Intermediate Body, there will be a loss of all or part of the funding.
In a letter to the Mayor of Nicosia, Mr. Charalambos Prountzos, it is clarified that "in the event that the Municipality of Nicosia proceeds with the implementation of the decision to amend the existing traffic regime without prior approval for modification by the Intermediate Body, the substantial change in the objectives/indicators of the co-financed project will entail (a) financial consequences for the Municipality, i.e. the return of all or a significant part of the sponsorship and (b) to be affected the credibility of the Municipality as a beneficiary for future funding.
The letter states that:
"According to the Common Provisions Regulations governing the Funds, infrastructure projects that are co-financed must not be substantially modified for five (5) years from the final payment to the Beneficiary (Municipality of Nicosia). The new traffic regulation that has been voted by the Nicosia Municipal Council is a factor that should be evaluated whether it substantially affects the achievement of the main objectives/indicators of the co-financed project. It is noted that the final payment to the Municipality of Nicosia has not yet been made".
The letter adds that "based on the above, it is necessary to submit a proposal for modification of the project to the Intermediate Body (Control Directorate – Ministry of Transport, Communications and Works) in order to assess whether the new data and regulations are consistent or significantly deviate from the objectives of the initial project and Program as well as with the terms of the financing agreement. It is recommended that the proposal for amendment include the necessary documents and studies on the objectives pursued by the new traffic regulation.
Here is the clear warning from the Directorate-General for Development:
In the event that the Municipality of Nicosia proceeds with the implementation of the decision to amend the existing traffic regime without prior approval for amendment by the Intermediate Body, the substantial change in the objectives/indicators of the co-financed project will entail (a) financial consequences for the Municipality, i.e. the return of all or a significant part of the sponsorship and (b) seriously harming the credibility of the Municipality as a beneficiary for future funding.
And the letter concludes:
"Given the above and the strict frameworks of the public funding agreement of the project, it is proposed that a meeting be held with the involved bodies so that the manipulations fall within the regulatory framework of the Funds and the Management and Control System of the co-financed Program".
