Grant scheme aims to make Old Nicosia a centre for business

The Interior Ministry's Department of Town Planning and Housing has announced the second call for applications for a grant programme aiming to strengthen business activity in the walled city of Nicosia.

The sponsorship scheme, which is part of the action plan for the regeneration and revitalisation of the city within the walls, concerns the provision of financial assistance and is addressed to natural or legal persons, owners, tenants or lessees of buildings (with the signed consent of the owners or the Guardian of Turkish Cypriot Properties ), who exercise or will exercise economic activity, for the purposes of strengthening business activity, in the area within the walls of Nicosia.

The total amount that will be allocated for the needs of this call for proposals amounts to €10 million for the period 2022-2026 ( €2 million per year ), while the project is financed by the state budget.

The objectives of the plan

The plan aims, among other things, to attract new businesses to selected areas within the walled city of Nicosia, whose activity is pre-defined and permitted within the confines of town planning, but also to encourage existing businesses to relocate to the areas included in the scheme.

The aim is to strengthen the social, economic, and environmental upgrading of the areas, to increase the sense of trust and security, to improve the quality of life, and, lastly, to return and reactivate human resources in the city within the walls.

At the same time, it aims to encourage the companies already operating in the said areas to expand the existing facilities to promote their business activity, with the aim of creating sustainable and competitive businesses, in the social and economic upgrading of the area within the city walls of Nicosia, by attracting other relevant investments, as well as upgrading the built environment within the city walls by contributing to the circular economy and green development, through the restoration/renovation of buildings and their reuse as well as the preservation of the area's architectural heritage.

Through the grant scheme, the restoration of Turkish Cypriot properties, the majority of which are in a bad state due to their age and the lack of proper and regular maintenance is also expected to be achieved, as well as the arrival of citizens from all over Cyprus and from the entire urban area of ​​Nicosia, along with the creation of new jobs.

Beneficiaries and participation conditions

Beneficiaries of the project are natural or legal persons, who are owners or tenants of buildings (with the owners' signed consent), and who carry out or will carry out a desired economic activity for the purpose of strengthening business activity, in the areas where the plan is applied.

For the purposes of the plan and the conversion of buildings into businesses, specific urban planning regulations and basic guidelines apply, depending on the type of each building under development (preserved building, ancient monument, or any other building in the designated area).

It is emphasised that natural or legal persons, who have received any state funding from another funding scheme for their building, may be considered beneficiaries of this scheme, provided ten years have passed since the grant was granted, while natural or legal persons who will receive approval under the specific plan will not be able to receive funding for the same expenses from any other Government grant plan.

Potential beneficiaries should also be active, registered in Cyprus small and medium enterprises (newly-established or existing).

Desired uses

The desired uses of businesses are listed in the Nicosia Center Area Plan.

Examples include services, professional offices, cultural centres/venues, creative professions businesses, retail, and mild recreational uses.

Special emphasis is given to business activities that mainly concern youth and students, but do not already exist as a majority of business activity (eg cafes, restaurants, etc.) in the designated area.

Such examples are innovation centers, creative businesses, bookstores/copy centers, gyms/studios, kindergartens, pharmacies, offices, commercial stores, electronics stores, domestic and international courier services, fruit shops/ small supermarkets, hairdressers/ beauty salons/ barber shops.

Creative professions businesses related to architecture, archives, libraries and museums, artworks, audiovisual products, tangible and intangible cultural heritage, design, festivals, music, literature, books and publishing, audio and visual arts are also recommended.

Eligible costs

It is clarified that any proposal with a total eligible cost of less than €30,000 for buildings up to 100 m2, and less than €50,000 for buildings over 100 m2, will not be considered eligible.

For expenses related to the configuration and renovation of buildings (construction work, electrical installations, plumbing, and mechanical installations), then the expenditure limit rises up to 70% of the total cost of the subsidised investment.

For equipment (furniture, computers, electronic office equipment, and peripherals, costs for lighting, costs for the construction of a product display on the premises of the enterprise, costs for warehouse equipment, kitchen counters, and cabinets, costs for the purchase and installation of fire safety air conditioners and security systems), the expenditure rises up to 20% of the total cost of the subsidised investment.

Up to 10% of the total cost of the subsidised investment will be available for the fees of consultants - researchers, who must be registered with the Cyprus Scientific and Technical Chamber (ETEK).

Sponsorship at 60%, up to €80,000 per project

Financial support is granted to natural or legal persons who exercise or will exercise economic activity, who are owners, or tenants, or lessees of buildings, and the amount of the sponsorship will amount to 60 % of the eligible costs of each proposal with a ceiling of financial assistance of €80,000 per project.

It is noted that the total amount of researchers' fees that will be classified as an eligible expense cannot exceed 10% of the eligible budget of the proposal.

The scheme is being implemented and will remain open until 31 December 2026. Potential beneficiaries will be able to submit applications/proposals during specific time periods, which will be defined in the relevant call for proposals.

Upon the exhaustion of the available fund for each invitation, the Department of Town Planning and Housing will make a relevant announcement and will stop accepting applications, until the next invitation.

The second call for proposals, which was announced on 31 July, 2023, will last five months, until Friday, 29 December, 2023 and will concern a total budget of €2 million.

(Source: InBusinessNews)