Cyprus secures loan from CoE Development Bank

Cyprus has secured a multi-million euro loan from the Development Bank of the Council of Europe to finance the capital’s sewerage system, which will serve the Greek Cypriot and the Turkish Cypriot communities.

The Bank’s Board of Directors has approved unanimously a 68 m. euro loan to fund the construction of the new bicommunal sewerage treatment plant, in the village of Mia Milia, near the capital Nicosia, and other projects for greater Nicosia relating to the sewerage system.

The new sewerage plant will solve serious environmental and operational problems in the Nicosia sewerage system, caused by old technology which is still in place, and it will be a relief for the residents of various suburbs of the capital as well as the northern Turkish occupied part of the capital.

The loan provides for 21 m. euro for the construction of the new bicommunal plant, 24 m. to complete the tarmac on certain roads in greater Nicosia and 23 m. for the partial funding of the sewerage system in other areas of Nicosia.

The total cost of the bicommunal plant is estimated at 26,5 m., of which 21 m. will come from the government of the Republic of Cyprus.

This is the second loan approved by the Development Bank to the Nicosia Sewerage Board.

Cyprus has been divided since the 1974 Turkish invasion. The loan was secured following an agreement signed by Nicosia Mayor Eleni Mavrou and Turkish Cypriot Cemal Bulutoghtlari, responsible for municipal affairs in Turkish occupied Nicosia.