The position of YPOIK for the Nicosia City Center

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Next Previous The position of YPOIK for Nicosia City Center HOME • INSIDER • CYPRUS • The position of YPOIK for Nicosia City Center < p>

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The acquisition of existing buildings available on the market is the most appropriate option for the interests of the Republic, the Ministry of Finance stressed in response to the findings of the Audit Office regarding the handling of the Ministry of Finance for the purchase of the Nicosia City Center building, in the context of the special report for the Ministry for the year 2020.

In its announcement, YPOIK noted that the total additional cost that the Republic would pay in case of construction of a corresponding privately owned building is expected to be of the order of € 7.79 million for the next five years. & Nbsp; & nbsp; & nbsp;

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Regarding the finding of the Audit Service that the acquisition of the building is done at an unprofitable price for the Republic, YPOIK stated that the estimate of the Department of Lands and Surveys was estimated at € 20.07 million reduced by 10%, due to the size of the building, while the corresponding estimate by the private appraiser amounted to € 24.54 million. The agreed amount during the financial negotiation process was finalized at € 22.65 million.

Regarding the availability of appropriations in the approved state budget, & nbsp; the Ministry noted that appropriations were included in the budget of the Department of Lands and Surveys totaling € 45 million for 2021 and € 47 million for 2022, which may, in accordance with the relevant Law and Regulations, be used for this purpose.

Regarding the need to prepare a Project Note/Sustainability Study for public investment projects, the Ministry noted that this practice entered into force in January 2021, ie at a time after the Publication of the Open Call for Expressions of Interest to the private sector. of buildings, published by the Ministry of Finance on 13.9.2019, through which the specific building was proposed. & nbsp; He added that the Invitation was prepared in collaboration with the General Accounting Office of the Republic, in order to ensure compatibility with the relevant legislation.

Regarding the issue of concluding an agreement for the acquisition of the building before securing the final approval certificate , the Ministry of Finance referred to the opinion of the Attorney General of the Republic, according to which “this action is not concluded as illegal, while the whole issue is regulated in the terms of the text of the purchase agreement”.

Concluding, the YPOIK noted that the Purchase Agreement has undergone a legal inspection and all the safeguards have been set for the purpose of safeguarding the interests of the Republic and the legality of the transaction and that the purchase agreement has not been signed, pending the process of releasing funds from the Parliament. .