EIB Backs Cyprus with €100 Million for Second Phase of Island-Wide Road Upgrades

EIB Backs Cyprus with €100 Million for Second Phase of Island-Wide Road Upgrades

(IN BRIEF) The European Investment Bank has disbursed the second €100 million tranche of a €200 million loan package to co-finance Cyprus’s extensive road improvement programme, with completion targeted for 2029. The funding—covering 50 percent of project costs—will support motorway, regional and rural road upgrades; new bridges, tunnels, and cycling/walking paths; and enhanced traffic management, water collection, and drainage systems. EIB Vice-President Kyriacos Kakouris highlighted the initiative’s role in bolstering mobility, safety, and climate resilience. Cyprus’s finance and transport ministries praised the EIB’s long-term partnership, noting that these strategic investments will improve connectivity in isolated areas, foster sustainable travel, and strengthen socio-economic cohesion. To date, EIB’s investments in Cypriot roads exceed €670 million, including a €112 million loan in 2021 for projects across major cities and the Vasilikos Energy Centre road.

(PRESS RELEASE) LUXEMBOURG, 31-Jul-2025 — /EuropaWire/ — EIB funding of €100 million will cover half the cost of Cyprus’s next phase of road network upgrades and extensions, aimed at making travel across the island nation both easier and safer. This second tranche completes the €200 million financing package approved by the European Investment Bank for comprehensive road infrastructure improvements, with works scheduled for completion by 2029.

Under the national plan spearheaded by the Cypriot Ministry of Transport, Communications and Works, projects include upgrading motorways, regional and rural roads, constructing new bridges and tunnels, and adding walking and cycling lanes. Upgraded traffic management systems and enhanced environmental management—such as improved water collection and drainage—will also be implemented to boost climate resilience.

“Investing in essential infrastructure like road networks is vital for strengthening social cohesion and driving economic growth in Cyprus,” said EIB Vice-President Kyriacos Kakouris. “This project will have a real and lasting impact on the daily lives of Cypriots—improving mobility, enhancing safety, and boosting climate resilience.”

Cypriot Minister of Finance Makis Keravnos added, “This financing agreement with the EIB reflects our strong, long-standing partnership. It enables us to execute vital infrastructure projects that improve road safety, connectivity, and sustainable mobility across Cyprus. We are grateful for the EIB’s continued support in our development efforts.”

Speaking on behalf of the Ministry of Transport, Communications and Works, Eleftherios Eleftheriou, Director of the Public Works Department, noted: “With EIB support, we’re promoting strategic land-transport projects in both urban and interurban areas to enhance accessibility in less-privileged and isolated communities, address climate change impacts, encourage sustainable travel options, and improve the island’s socio-economic cohesion.”

Since 1998, the EIB’s investments in Cypriot road projects have topped €670 million. Prior to the two recent €100 million tranches, the most recent EIB loan was €112 million in 2021, which supported four key projects in Nicosia, Limassol, Paphos, and the Vasilikos Energy Centre road upgrade.

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

Media Contact:

Wood Graham
g.wood@ext.eib.org
+352 4379 – 70512

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank