CYPRUS ROAD INFRASTRUCTURE FL

The framework loan will support a multi-year road infrastructure programme implemented by the Public Works Department of the Ministry of Transport, Communication and Works in the Republic of Cyprus.

The aim is to support investments for the construction and rehabilitation of roads, motorways, including core trans-European networks (TEN-T) as well as related infrastructure to implement sustainable urban mobility plans, transport safety and resilience/climate adaptation measures. The project is expected to significantly improve accessibility, efficiency and road safety.

The proposed project will support Cyprus in improving its road transport infrastructure. This is consistent with the EIB Public Policy Goal for sustainable cities and regions. The framework loan will support a multi-year programme of transport and public infrastructure investments including road construction and rehabilitation (including TEN-T), schemes supporting the implementation of sustainable urban mobility plans, transport safety, network management and climate change resilience and adaptation measures. Cyprus is an EIB Cohesion Priority region and a Just Transition Fund territory in the period 2021-2027, therefore, the project will also support economic and social cohesion. The project is expected to significantly address accessibility (improving road networks/coordination market failure), efficiency (congestion) and road safety externalities. Also, the project may be supported by technical assistance on areas related to sustainability rating of infrastructure projects and climate adaptation.

Moreover, EIB financing renders substantial financial benefit as it is provided at customised terms, such as flexibility of drawdowns, sculpted repayments, longer availability and grace periods, fixed interest rates for the whole duration of the loan, interest revision of conversion. It also serves to crowd in financing from other investors and also contributes to the diversification of the Borrrower's funding sources and optimisation of its debt structure. 

The promoter's environmental management capacity to apply the relevant EU Directives and the requirements of social standards will be verified during appraisal. Where and if applicable, this includes the requirements of the Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, Strategic Environmental Assessment (SEA) Directive 2001/42/EC, Habitats Directive 92/43/EEC and Birds Directive 2009/147/EC.

The promoter shall ensure that contracts for implementation of the project have been/will be tendered in accordance with the applicable EU procurement legislation, for contracts above the threshold: Directive 2014/23/EU / 2014/24/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.