BAKU, Azerbaijan, December 20. The European Investment Bank (EIB) has approved a 100 million euros loan to support road infrastructure improvements across Cyprus, Trend reports.
This funding represents the first tranche of a 200 million euros financing package, with the second 100 million euros tranche planned for 2025. The upgrades aim to improve road safety, connectivity, and resilience to climate change, with completion expected by 2029.
The loan will finance a national plan led by the Cypriot Ministry of Transport, Communications and Works. Projects include upgrading motorways, regional and rural roads, constructing new bridges and tunnels, and enhancing traffic management and drainage systems. Additional measures will focus on sustainable urban mobility, such as walking and cycling lanes.
EIB Vice-President Kyriacos Kakouris emphasized the importance of infrastructure investment for economic growth and social cohesion. "These projects will make daily travel safer and more efficient for Cypriots while supporting climate resilience," he said.
Cypriot Minister of Finance Makis Keravnos highlighted the strategic impact of the agreement. "This financing accelerates critical investments to enhance safety and regional connectivity," he noted. Minister of Transport Alexis Vafeades added that the improvements would reduce traffic bottlenecks, connect isolated areas, and promote sustainable transport options.
Since 1998, the EIB has provided over 570 million euros for Cypriot road projects, including a 112 million euros loan in 2021 to support infrastructure in Nicosia, Limassol, and Paphos. Previous efforts also include upgrades to the A1 motorway and the Dhekeli–Protaras motorway, among others. This latest loan continues the EIB's commitment to modernizing Cyprus's transport networks and fostering sustainable development.