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Next Previous Recovery Plan: The 35 sponsorship projects amounting to € 380 million HOME • INSIDER • CYPRUS • Recovery Plan: The 35 sponsorship projects amounting to € 380 million
& nbsp & nbspΕλευθερία Παϊζάνου & nbsp; & nbsp;
The disbursement of the second tranche, amounting to € 85 million, from the Recovery Fund, is in the air, due to the involvement between the government and opposition parties in relation to the legislation that will help strengthen the legal framework for managing the non-performing determine the licensing and operation of loan management companies, 35 government sponsorship plans are planned to be implemented through the National Recovery Plan.
Of the total amount of € 1.2 billion that Cyprus will receive until 2026 from the relevant European fund, after previously implementing 58 reforms and 75 investments, the sponsorship projects that will be activated are estimated to be worth over € 380 million. At the same time, there are estimates that from the implementation of the sponsorship plans, an additional € 400 million will be mobilized from private investments.
READ ALSO: & nbsp; Involvement in the disbursement of € 85 million by the Commission b >
The sponsorship projects will provide investment opportunities and a range of incentives to help mitigate the economic and social impact of the coronavirus pandemic.
In total, six groups are the beneficiaries of the sponsorship schemes. These are individuals, households, vulnerable groups, small and medium-sized enterprises, large enterprises, local authorities, the public sector and non-governmental organizations. The sponsorship projects cover the areas of green transition (RES, energy efficiency, circular economy, electricity), the primary sector, manufacturing, tourism, research and innovation, as well as start-up and innovative entrepreneurship. In addition, sponsorship projects cover the areas of digital transformation, consulting, certification, medical equipment and services, human resources, education and social cohesion.
Of the 35 sponsorship projects, 25 are expected to be announced within the year, some others are already in implementation since last year while in 2023 around 5 projects are planned. It should be noted that the sponsorship plans are in relation to the five axes of the National Recovery Plan. It is recalled that the Cypriot plan has defined the axes of public health and civil protection, ie the transition to a green economy, strengthening the resilience and competitiveness of the economy, digital transformation, employment, social protection, education and human resources. € 7.5 million to be spent on health health
In the field of health, two sponsorship projects are under development.
– These are the sponsorships for the purchase and replacement of medical equipment in private hospitals, which are contracted with the Health Insurance Organization for services in the General Health Plan. The budget of the projects is estimated at € 5 million. With the implementation of the projects, 23 hospitals are expected to be supported until the fourth quarter of 2025. The maximum amount of aid per beneficiary will range from 30 to 50%, ie up to € 200 thousand. >
– Accreditation plan for public and private hospitals, which will contribute to the support of 45 hospitals by the end of 2025. The aid ranges from 40-70% per beneficiary, with a maximum amount of € 60 thousand. A total amount will be spent for the implementation of the plan € 2.5 million
Generous green transition plans
Nine plans fall into the green transition sector (RES, energy efficiency, climate neutrality and electricity).
– Last March, an energy efficiency investment promotion plan was announced for small and medium-sized enterprises, non-governmental organizations and other organizations, with a total budget of € 40 million. The plan will support 275 entities by the end of 2025, aiming at minimum primary energy savings 30% on average. The aid can reach up to 65%, which corresponds to € 200 thousand
– The project for promotion of RES and individual energy efficiency measures in the houses, including households with vulnerable energy consumers, is being implemented, amounting to € 20 million. The project will support 16,470 households (including 270 households with a disability), 2026. The aid rate is estimated at 25-75%, ie € 1,500 to € 3,750.
– Plan to encourage the use of RES and energy saving measures in local authorities and public sector bodies. The € 9m project was announced two months ago and will help support local authorities in implementing 580 investments. The financial support ranges from 75 to 100% with a maximum sponsorship amount of € 100 thousand
– A plan to support local communities in tackling and adapting to climate change. The project will provide € 3.5 million in grants to local authorities with a maximum aid amount of up to 80%.
– Sponsorship plan to reduce carbon dioxide (CO2) emissions to industries, businesses and organizations totaling € 20 million. The first phase of the project envisages the development of action plans, forecasts and monitoring and verification reports. The second phase includes investments & nbsp; and the & nbsp; implementation of action plans. The plan is aimed at natural and legal persons engaged in economic activity.
– Plan for installation of charging points in homes, public accessible areas, businesses and local authorities. 1,200 charging points are expected to be installed in publicly accessible buildings, municipalities, businesses and households by the end of 2025. Last month, a plan was announced to implement charging infrastructure for electric vehicles from renewable energy sources, households and local authorities. Beneficiaries are households, which will receive sponsorships of € 1 million, as well as municipalities and communities that will be subsidized with another € 1 million. & Nbsp; for both categories the aid will be from 50 -100%. Specifically, the maximum amount of sponsorship for households will be € 2,347 and for local authorities € 250 thousand. The total budget is € 6 million
& nbsp; – Electric vehicle purchase plan. The purchase of 5,750 electric vehicles will be subsidized by 2025. The implementation of the project started last year. The aid rate is between 12 and 37.5%, ie from € 1 thousand to € 15 thousand. The total cost of the project is estimated at € 30 million
– The plan to withdraw polluting vehicles is being implemented in combination with incentives for transportation options with low or zero emissions. € 15 million will be spent on the recall of 3,150 polluting vehicles by the end of 2025, which will be replaced by electric bicycles and vehicles with or without low emissions. The plan, which is addressed to natural and legal persons, also provides for the granting of annual bus tickets. The sponsorship ranges from € 750 to € 12 thousand.
The processing companies are digitized
the following:
– Plan for genetic improvement of the sheep and goat population. The project with a budget of € 5 million will contribute to the support of 40 breeders and the improvement of sheep and goats. The sponsorship that each beneficiary will receive can reach € 87,760.
– Plan for modernization and digitization of companies operating in the fields of processing and trade of agricultural products at a cost of € 25 million. The project will support 176 small and medium-sized enterprises in the field of processing and marketing of agricultural products.
– & nbsp; Plan to strengthen the competitiveness of large companies operating in the manufacturing sector. The project, with a total budget of € 7 million, will support ten large manufacturing companies by the second quarter of 2026.
Upgrading hotels and restaurants
Four projects concern the upgrading of the tourism sector.
– & nbsp; Plan to upgrade tourist accommodation/hotels in the countryside, mountainous and remote areas, to modernize and improve the competitiveness of the tourism product and the Cypriot agritourism. The € 10 million project is aimed at hotels and tourist accommodation.
– € 8 million will be allocated to upgrade traditional restaurants or sell products to join the “Taste of Cyprus” pact. The plan concerns restaurants and small and medium-sized enterprises in the field of selling traditional products.
– & nbsp; Plan for the creation of medical facilities and autonomous assisted living facilities, with the aim of attracting medical tourism and health and wellness tourism. The cost of the project is estimated at € 8 million and is aimed at hotels and tourist accommodation.
It should be noted that the three projects will support 175 small and medium enterprises, ie restaurants and sellers of traditional products by mid-2023 and 57 hotels by mid-2026. For all three projects the amount of aid reaches € 200 thousand. In the tourism sector This includes the plan for the revitalization of rural, mountainous and remote areas through the creation of “Authentic Experiences” for the enrichment of the tourism product. By the end of 2025, the plan will support 105 businesses and local councils.
The circular economy and innovation
Two other sponsorship schemes are related to the circular economy. This is the implementation of the circular economy in 50 hotels and the certification of 18 hotels as circular. An amount of € 1.4 million will be spent on the implementation of the project. In addition, another € 15 million will be spent on supporting 40 small and medium enterprises through the strengthening of the circular economy in industry. The maximum amount of aid per beneficiary will be € 317,500. In the field of research and innovation, there are 3 sponsorship projects, two of which are in the process of implementation. These are innovation funding programs and projects to support the development and competitiveness of small and medium-sized enterprises, including start-ups and innovative enterprises. By the second quarter of 2026, the € 52 million project will support 200 organizations engaged in research and innovation. € 6 million and 10 companies in the areas of green transition research will also be supported. & nbsp; At the same time, an amount of € 3 million will be spent to support 16 companies for the development of classified laboratories. The project will contribute to the development of classified laboratories and communication networks in research and academic organizations.
€ 22.4 million will finance small and medium-sized
In addition, in the areas of upgrading of small and medium enterprises, three projects amounting to € 22.4 million are promoted. This is a project for consulting services to small and medium enterprises. Through the plan, it is estimated that 375 companies will be supported with a maximum amount of support of € 15 thousand. The financial support is estimated at around € 50 thousand. In addition, 140 small and medium-sized enterprises will be supported to support the extroversion and export orientation of Cypriot companies.
A sponsorship plan is being promoted for the creation of dormitories in the walled city of Nicosia, sponsorships related to the certification of public and private sector organizations in the development and implementation of management systems to combat corruption and corruption, as well as a plan to upgrade the internal wiring of buildings to be “Gigabit-ready” and promote connectivity.
Employing up to 400 unemployed and pre-school education
Employment plans are also important. Specifically, through the plan of flexible forms of work with telework, 400 unemployed people will be employed by the third quarter of 2025. They will have to complete 12 months of work, with 30% being with the status of telework. The cost of the project is estimated at € 4 million. The last three projects are related to the education and care sector and cost € 28 million. The projects will extend free compulsory pre-school education from the age of four. It is estimated that 7,425 children will attend community and private kindergartens free of charge. The creation of multifunctional centers for children and child care is also promoted, which will support 27 local authorities and non-governmental organizations. 18 accommodation structures will be set up for children, adolescents with behavioral disorders, people with disabilities and people in need of long-term care – Sponsorship Plan for the creation/renovation and purchase of equipment.
