Vice President of the European Investment Bank (EIB) to Finalize €100 Million Loan Agreement for Road Infrastructure Improvements in Cyprus

Vice President of the European Investment Bank (EIB) to Finalize €100 Million Loan Agreement for Road Infrastructure Improvements in Cyprus

The European Investment Bank (EIB) is set to provide a €200 million loan to the Republic of Cyprus to fund major road infrastructure and sustainable transport projects across the island. The loan agreement, which consists of two tranches of €100 million each, is currently being finalized during the visit of EIB Vice President Kyriakos Kakouris to Cyprus.

The second tranche of €100 million is scheduled to be signed this morning at the Ministry of Finance. Finance Minister Makis Keravnos and EIB Vice President Kakouris will be present for the signing ceremony. This second tranche forms part of a broader €400 million national investment programme running through 2029, aimed at improving connectivity, road safety, and climate resilience.

The €100 million tranche will be used to support a multi-year programme of road network renovations and extensions. This includes upgrading rural roads, urban bypasses, building new bridges and tunnels, and improving road safety features like lighting, signage, and drainage systems. The project also emphasizes climate resilience by integrating environmental management systems such as better water collection and drainage.

EIB Vice President Kakouris noted that the tranche is not just financial support but a shared commitment to creating safer and more sustainable infrastructure that improves daily life and fosters social cohesion by facilitating access and communication between regions. The loan also benefits from highly favorable terms, including long maturity and grace periods, with technical assistance from the EIB ensuring proper implementation.

This initiative supports economic growth and social cohesion through better infrastructure. The funds will be used for public road infrastructure projects managed by the Department of Public Works. The first tranche of €100 million was signed earlier, and the remaining €100 million will be signed today, marking a significant step forward in Cyprus's efforts to modernize its transport infrastructure.

[1] European Investment Bank Press Release, "EIB and Cyprus sign €100 million loan for sustainable transport projects", 2022. [2] European Investment Bank Press Release, "EIB and Cyprus to sign €100 million loan for road infrastructure", 2022. [3] Republic of Cyprus Ministry of Finance Press Release, "EIB and Cyprus sign €200 million loan agreement for road infrastructure", 2022. [4] European Investment Bank Press Release, "EIB to provide €200 million loan to support Cyprus's road infrastructure and sustainable transport", 2022. [5] European Commission Press Release, "EIB to support Cyprus's road infrastructure and sustainable transport with €200 million loan", 2022.

1. The European Investment Bank (EIB) is committed to fostering social cohesion and economic growth by providing a €200 million loan to the Republic of Cyprus, with a second tranche of €100 million scheduled to be signed today at the Ministry of Finance.
2. This funding will be invested in public road infrastructure projects managed by the Department of Public Works, supporting a multi-year programme of road network renovations and extensions, including urban bypasses, new bridges and tunnels, and road safety improvements.
3. EIB Vice President Kakouris emphasized that this loan represents more than just financial support, as it embodies a shared commitment to creating safer and more sustainable infrastructure that improves daily life and facilitates communication between regions.

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