11 July 2022
Promoter – Financial Intermediary
REPUBLIC OF CYPRUS
Framework loan for supporting local authorities in multi-sector investments aiming at sustainable development of urban areas.
Additionality and Impact
The Project aims to promote much needed investments in urban regeneration and rehabilitation in line with National and EU policies and objectives. In particular, it is expected to focus on Climate Action and Environmental Sustainability (e.g. support the shift to more sustainable transport modes and reduce congestion and pollution) and improve the provision of public facilities amenities and services.
Investments to be financed under the operation are expected to generate high economic benefits through (i) improvements in the overall well-being of citizens (e.g. better urban infrastructure, more green areas contributing to recreation and health and, importantly, climate mitigation / adaptation contributing to urban resilience) and (ii) increased attractiveness of the urban areas as a business location with a positive effect on growth and job creation.
The State would require high up-front investment costs which necessitates access to long-term funding, not easily available to the Borrower from the financial markets. In the absence of such long-term financing, investment implementation could be delayed.
The EIB finance will be accompanied by technical support to the final Beneficiaries, the PIU and the Borrower. It will bring important expertise, knowledge and coordination.
The project is a framework loan with the Republic of Cyprus, Ministry of Finance, to support sub-projects implemented mainly by municipalities, in eligible sectors such as energy efficiency, road safety etc. Other investments implemented by national authorities or public entities will also be eligible.
Proposed EIB finance (Approximate amount)
EUR 150 million
Total cost (Approximate amount)
EUR 300 million
Compliance with the relevant EU Directives will be verified during appraisal stage: EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU, SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed.
The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/23/EU / 2014/24/EU or 2004/18/EC / 2014/25/EU or 2004/17/EC, where applicable, 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 Official Journal of the EU, as and where required.
Signed - 16/12/2022