EIB ready to support investments in Cyprus in defence, water management, and energy

The European Investment Bank (EIB) is seeking opportunities to enhance support in key areas of public policy in Cyprus, such as water management, defence, energy, housing, and healthcare, EIB Vice-President Kyriacos Kakouris has said.

Speaking to CNA, he also outlined a range of projects that could fall within the Bank’s financing priorities. In his interview, Kakouris also referred to the EIB’s role in enhancing the EU’s competitiveness, amid tariffs, emphasising that the EU remains open to cooperation and ready to engage constructively in partnerships based on mutual benefit.

Regarding Cyprus, the EIB Vice-President stated that, in line with the EU’s new priorities on strengthening defence and security, the Bank has initiated preliminary discussions with the Republic of Cyprus about dual-use projects, such as the naval base in Mari, Larnaca (south), the construction of a helipad in Solea Valley, Troodos, the procurement of firefighting and rescue aircraft and helicopters, as well as the upgrade of the port in Latchi, Paphos (west).

"We are in constant contact with the relevant authorities and are ready to assess specific proposals once they are formally submitted with the necessary technical documentation," he said.

On the energy sector, he mentioned the potential for a loan to the Electricity Authority of Cyprus (EAC) for upgrading its grid.

When asked about the EIB’s stance on the Cyprus-Greece electricity interconnection, he said the Bank will undertake the necessary technical and financial assessment of the project once the revised National Energy and Climate Plans (NECPs) of both countries are approved by the European Commission. He added that the assessment will be based on sound economic, technical, and regulatory data to ensure that the project meets all sustainability criteria and aligns with the EU’s green transition goals.

Regarding the Vassilikos Natural Gas Terminal, a project co-financed by the EIB and currently facing delays in its implementation, Kakouris noted that the project represents a strategic investment for both the Cypriot government and the EIB. "The EIB continues to closely monitor the Cypriot government’s efforts to complete the project and remains committed to ensuring it is implemented with transparency and in line with the highest European and international standards," he added.

The Vice President highlighted that housing, health and education are also key priorities for the Bank. He referred to talks with the University of Cyprus, in order to examine whether EIB can support the construction of student residences. He also said that during his visit in Cyprus he talked with the

Furthermore, he noted that the EIB is in talks with the State Health Services Organisation, regarding possible financing of its investment plan. Moreover, he noted that upgrades to school facilities and the construction of new ones are also underway.

He added that the EIB could also play a vital role in implementing the strategic investment programmes of the District Local Government Organisations and the Ministry of Agriculture, in areas such as water loss and desalination, once these projects are mature enough for financing.

Finally, asked how the EIB can help safeguard the European economy, during a period marked by protectionism and deglobalisation, Kakouris said that one of the Bank’s priorities is to boost the competitiveness of the European economy. "It’s the only line of defence we have," he noted, adding that at the most recent EIB Board meeting, ways to further support the European automotive industry were discussed.

On the topic of tariffs, he emphasised that "we remain calm and continue with a steady approach, always seeking dialogue with the United States, while, at the same time, deepening our international partnerships." He added that in an "increasingly turbulent and unstable global environment, Europe represents a safe haven for investors and a beacon of stability for countries around the world seeking reliable partners."

"We’re sending a clear message to the world: the EU is open to cooperation and ready to engage constructively in partnerships based on mutual benefit. And our partners are responding positively to this call," he said.

(Source: CNA)