EIB Grants €100M to Cyprus for Safer Roads and Sustainable Mobility by 2029

The European Investment Bank (EIB) has approved a €100 million loan to the Republic of Cyprus, marking the second tranche of a broader €200 million infrastructure financing agreement aimed at upgrading and expanding road networks across the country. This strategic investment is expected to transform mobility, enhance road safety, support climate adaptation, and promote social and regional cohesion through improved accessibility and sustainable transport.

Part of a Broader €200 Million Commitment

This latest funding builds on a first €100 million tranche signed in December 2024, and together the two tranches will finance 50% of the total project costs associated with Cyprus’s long-term road infrastructure modernization programme. The remaining half of the funding is being sourced from the Cypriot government’s national development plan and complementary funding streams, including potential EU structural and investment funds.

The construction and upgrade works are scheduled for completion by 2029, forming part of a multiyear plan by the Ministry of Transport, Communications and Works, aimed at strengthening the country’s transportation backbone and advancing its sustainability goals.

Scope of the Road Infrastructure Programme

The investment covers a wide range of road improvements across urban, interurban, and rural areas, with a focus on both functionality and sustainability. Key features include:

• Upgrades to existing motorways and regional roads

• Construction of new road links, tunnels, and bridges

• Improved drainage and climate-resilient infrastructure

• Development of walking and cycling lanes to support active transport

• Implementation of intelligent traffic management systems

These enhancements are expected to improve traffic flow, reduce travel time, and significantly enhance safety for drivers, cyclists, and pedestrians alike. Additionally, they will increase resilience to climate-related events such as flooding, which are becoming more frequent and severe across the Mediterranean region.

EIB and Cyprus: A Longstanding Partnership

Commenting on the new financing agreement, EIB Vice-President Kyriacos Kakouris, who is also responsible for EIB’s operations in Cyprus, emphasized the developmental impact of the investment:

“Investing in essential infrastructure like road networks is vital for strengthening social cohesion and driving economic growth in Cyprus. 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 welcomed the agreement, highlighting the role of the EIB as a trusted partner in Cyprus’s infrastructure journey:

“This new financing agreement reflects our strong and long-standing partnership with the EIB. It will allow us to implement critical infrastructure projects that enhance road safety, connectivity, and sustainable mobility across Cyprus.”

Eleftherios Eleftheriou, Director of the Public Works Department, delivered a statement on behalf of Transport Minister Alexis Vafeadis, noting that the projects will benefit isolated and less privileged regions, particularly in rural and mountainous areas:

“These projects are not only about building roads — they are about improving the quality of life, ensuring equal access to services, and promoting sustainable travel options for all Cypriots. With the EIB’s support, we aim to strengthen socio-economic cohesion across the island.”

€670 Million in EIB Road Financing for Cyprus Since 1998

The latest tranche brings the EIB’s total investment in Cypriot road infrastructure to over €670 million since 1998. Past projects have included:

• A €112 million loan in 2021 to fund four major transport projects in Nicosia, Limassol, and Paphos

• Strategic support for the Vasilikos Energy Centre access road

• Upgrades to vital motorway sections and urban transit routes

The EIB’s long-term involvement in Cyprus’s transport sector underlines its commitment to sustainable development, EU regional integration, and climate adaptation.

Toward Greener, Safer, and More Inclusive Mobility

Beyond just physical infrastructure, the financed works represent a broader policy shift in Cyprus toward:

• Reducing carbon emissions from transport

• Increasing the use of non-motorised travel options

• Improving accessibility for vulnerable populations

• Creating jobs and supporting local economies through construction and related services

This integrated approach reflects a growing understanding that infrastructure development must go hand-in-hand with climate action, inclusivity, and innovation.

As Cyprus moves to future-proof its land transport systems, the EIB’s support ensures that the necessary financial resources are in place to make these transformative changes a reality by 2029.