EOA to distribute €170m to municipalities and communities in 2025

The five Provincial Self-Governing Organisations (EOA) will be sharing out over €170 million to Municipalities and the Communities throughout Cyprus in 2025, mainly in the form of sponsorship.

According to an explanatory note accompanying the 2025 state budget, all funds for Local Government Authorities were included in the budget of the Ministry of the Interior and the largest amount corresponding to almost 70% of the total concerns state sponsorship to the 20 municipalities of the free areas.

It is noted that part of the appropriations included in the state budget are intended to cover the salaries and pensions of current and former community leaders.

State sponsorship

More specifically and based on the note, in the Local Self-Government Principles chapter of the budget of the Ministry of the Interior, the funds to be distributed include, among others:

• €93,975 intended to cover the state grant to the Union of Communities.
• €5,137,000 intended to cover the state grant to the occupied Municipalities/Councils/Communities/Associations of Occupied Communities for their operational and/or other expenses and the sponsoring of commemorative events of the occupied Local Authorities.
• €117,000,000 intended to cover the state sponsorship to the 20 municipalities of the free areas, according to the "Municipalities Law of 2022".
• €18,000,000 intended to cover the state sponsorship to the Community Councils of the free areas as follows:
  -Covering the cost of services provided in 2021 by the Pyla Community Council to the Turkish Cypriot residents of the Community: €105,000
  -Subsidy of the annual expenditure required for water supply purposes of the Community of Alasssa, based on the EAC accounts.: €20,000
  - Sponsorship for the organisation of conferences, meetings, events, etc. for local government issues by the Union of Cyprus Communities, against receipts: €20,000
  - Sponsorship of the operation of Academy of Local Self-Government of Cyprus ( €30,000) and of the Energy Office of Cyprus ( €20,000 ): €50,000
  - Sponsorship to Community Councils and Community Associations: €17,550,000
  - Events of Community Councils and various others: €255,000
• €3,000,000 relating to sponsorship of the "Service Provision Complexes" of the Communities, which covers the payroll of the additional employees in the 30 Service Provision Complexes.

Provincial Self-Governing Organisations

Additionally, the budget of the Ministry of the Interior includes appropriations of €17,510,000 intended to cover the following:

• Exceptional sponsorship to the Provincial Self-Governing Organizations (EOAs) for the loss of revenue from development licensing: €12,000,000
• Exceptional grant to Municipalities for the maintenance of roads of primary importance: €3,000,000
• Sponsorship to EOA Nicosia: €2,000,000
• Sponsorship to the EOA Larnaca to cover the sewerage fees and user fees attributable to the Turkish Cypriot residents of Pyla and Sponsorship to the EOA Famagusta due to the exemption of the government settlements and self-housing settlements of Achnas and Ayios Georgios Acheritos from the imposition of the annual sewerage fee: €150,000
• Donation to EOA Famagusta to cover the pensions of the pensioners of the Famagusta Water Supply and Sewerage Boards: €360,000.

Also, a total amount of €3,592,412 included is intended to cover the compensation of the community leaders of Cyprus as follows:

• €1,275,000 which will cover the compensation of the 88 community leaders of the Nicosia Province and the community leaders of the occupied communities (39), including their 13th salary. It is noted that, by decision of the Council of Ministers dated 30/8/2008, the payment of the compensation to the community leaders of occupied communities is made on a monthly basis -50% of the compensation received by the community leaders of the free areas, per category of the number of voters that applies in the free areas.
• €770,600 intended to cover the compensation of 86 Mayors of Limassol District, including their 13th salaries.
• €376,812 which will cover the compensation of 33 Municipal Councilors of Larnaca District, including their 13th salaries. The same fund will also cover the compensation of the two Community Heads of the occupied areas.
• €621,000 intended to cover the compensation of the Paphos Province Councilors, including their 13th salary.
• €355,000 which will cover the compensation of the winemakers of the free area of ​​Famagusta, including their 13th salaries. In addition, the compensation of the community leaders of the occupied territories will be covered.
• €194,000 intended to cover the annual (flat rate) compensation of the Community Heads of the occupied Kyrenia Communities.

Also, €2,824,517 is intended to cover the pension compensation to eligible former Community Leaders:

• €890,000 which will cover the pension compensation to beneficiaries former Community Leaders of Nicosia District. It is noted that, from 01/01/2023, the provision also covers pension compensation to the Community Heads of the Occupied Communities.
• €615,000 which will cover the pension compensation to beneficiaries former Mayors of the Province of Limassol.
• €422,667 which will cover the pension compensation to beneficiaries former Mayors of the Province of Larnaca.
• €769,500 which will cover the pension compensation to the beneficiaries of former Paphos Province Mayors.
• €104,000 which will cover the pension compensation to beneficiaries former Community Heads of Famagusta District.
• €25,350 which will cover the pension compensation to the beneficiaries of the former Mayors of the Province of Kyrenia.

Drainage systems

In addition to the above, the budget of the Ministry of the Interior also included €3,450,000 concerning:

• Governmental contribution to the Municipality of Nicosia, amounting to €300,000, for the construction of flood protection works of the Klimos River in Engomi.
• Governmental contribution to the Limassol Provincial Self-Governing Organisation, amounting to €2,000,000, for the construction of certain flood protection projects in the greater Limassol area.
• Governmental contribution to the Provincial Self-Governing Organisation of Larnaca, amounting to €1,000,000, for the construction of anti-flood works in the Kamares area of ​​Larnaca.
• Governmental contribution to the Paphos Province Self-Government Organisation, amounting to €50,000, for debt settlement for repayment of interest and capital for loans related to Phase A rainwater projects.
• Execution of emergency anti-flood works for immediate problem solving in the amount of €100,000. Part of this amount will be distributed to the Province Administrations, depending on the needs that arise.

(Source: InBusinessNews)