Summit Q&A looks at how Cyprus can start attracting public-private partnerships

A Q&A session during the Unlocking Investment Through PPP International Summit, taking place in Nicosia, brought experts together to discuss ways how Cyprus can start attracting public-private partnerships (PPPs).

Moderated by Invest Cyprus CEO Marios Tannousis, the session was joined by Stelios Demetriou, Partner, Leader of Strategy and Transactions Services, CESA M&A Leader, EY Cyprus, and Ziad-Alexandre Hayek, President, World Association of PPP Units & Professionals (WAPPP).

During the Q&A, Stelios Demetriou, who had earlier said Cyprus was lagging behind its competitors when it comes to PPPs, was asked which areas he thought PPPs were essential in Cyprus.

“PPPs are needed in critical infrastructure across the country,” he said. “There are smaller projects that we can start with baby steps.”

He said the island’s municipalities are a key example. “They are short of cash, they rely on government support and they are sitting on very aged infrastructure,” he pointed out.

Demetriou mentioned Nicosia Municipality in particular. “Nicosia is probably the city that has fallen behind in terms of development, compared to the other towns. PPPs in Nicosia can help modernise and upgrade the city, fixing infrastructural issues, such as the traffic. We’ve heard of plans for trams, upgrading the network. These are great opportunities for PPPs.”

The east part of the city is very underdeveloped, he said. “A PPP could very well transform that part of the city, rejuvenate it and create life.”

In another questions, Ziad-Alexandre Hayek was asked what steps Cyprus should take to further enhance its economic development with PPPs; and avoid failed concession contracts, like what happened for example with the Larnaca port and marina development.

“The most important thing is to stop thinking of PPP as a tool for procurement,” said Hayek. “The right way, in my opinion, is to say this is our plan for Cyprus, this is where PPP fits in and this is going to be our PPP strategy. Set up a policy for PPP. For the implementation, you have the EU regulations and you have to go through that. But the important thing is to have a strategy and vision.”

The second, he said, is capacity building. “Whether at the level of Invest Cyprus, ministries or municipalities, capacity building is very important.” As he said, you need to understand policy, politics, project identification, project design, technical and environmental aspects of a project, understand project supervision, have the ability to deal with investors, not only local but international as well. “So it is very complex. What troubles me in most countries is that governments think they know everything. They think a PPP is easy and simple. It’s not.”

The Summit has been organised by Invest Cyprus, the World Association of Investment Promotion Agencies (WAIPA) and World Association of PPP Units & PPP Professionals (WAPPP).

EY Cyprus is Gold Sponsor, Hermes Airports is Silver Sponsor, and the European Investment Bank is the Knowledge Sponsor.

It is being coordinated by IMH and is taking place under the auspices of the Republic of Cyprus.