REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Fifth Annual Report 2010 on the implementation of Community assistance under Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community
Date: 2011-05-30
Institutions: European Commission
Subjects: Cyprus, EU programme, Türkiye, economic development, financial aid, social development

EUROPEAN COMMISSION 

Brussels, 30.5.2011 
COM(2011) 283 final 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

Fifth Annual Report 2010 on the implementation of Community assistance under 
Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of 
financial support for encouraging the economic development of the Turkish Cypriot 
community 

 
 
 
 
  
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

Fifth Annual Report 2010 on the implementation of Community assistance under 
Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of 
financial support for encouraging the economic development of the Turkish Cypriot 
community 

1. 

INTRODUCTION 

Council  Regulation  (EC)  No  389/2006  establishing  an  instrument  of  financial 
support  for  encouraging  the  economic  development  of  the  Turkish  Cypriot 
community1 (hereafter the "Aid Regulation") is the basis for the implementation of 
the  assistance  for  Turkish  Cypriot  community  and  requests  annual  reporting  to  the 
Council  and  the  European  Parliament.  This  fifth  report  covers  the  period  from  1 
January until 31 December 2010. 

2. 

PROGRAMMING OF THE ASSISTANCE 

Under the 2010 budget € 3 million was committed for the support of the Committee 
on Missing Persons (CMP)2.  

A programming exercise took place for the allocation of €28 million under the 2011 
budget.  The  external  evaluations  from  2009  and  2010,  internal  evaluation  and 
consultations with the stakeholders served as the basis for it.  

3. 

IMPLEMENTATION MECHANISMS  

The programme is implemented in an EU Member State in an area that is not under 
the effective control of that Member State's Government and where the application of 
the  EU  acquis  is  suspended.  The  assistance  is  implemented  primarily  through 
centralised  management  by  the  European  Commission.  Some  projects  are  jointly 
managed with the United Nations Development Programme (UNDP).  

The Commission operates in a unique political, legal and diplomatic context. Ad hoc 
arrangements  are  needed  to  implement  the  programme  while  respecting  the 
principles of sound financial management.  

In EU-funded aid programmes, a Financing Agreement with the Government of the 
beneficiary  country  generally  establishes  the  legal  framework  under  which  the 
assistance  is  implemented.  No  such  agreement  exists  for  this  assistance.  Therefore, 
the  Commission  has  to  rely  on  what  it  understands  to  be  the  rules  and  conditions 

1 
2 

OJ L65, 7.3.2006, p.5. 
Commission decision C(2010)6874 on the 2010 support to the Committee on Missing Persons.  

EN 

1 

   EN 

 
                                                 
applicable  locally.  It  means  that  the  Commission  entering  into  contractual 
arrangement takes on more risks than it would normally encounter. 

Because  of  the  political  context,  enforcement  of  recovery  orders  from  Turkish 
Cypriot  entities  in  case  of  non-compliance  with  terms  of  contract  may  be  difficult. 
The  Commission  has  adopted  measures  to  mitigate  this  risk  including  intensive 
monitoring and support to beneficiaries, revised payment conditions, linking advance 
payments with proof of signed procurement contracts and the extensive use of bank 
guarantees. 

The  Commission  relies  on  the  support  of  the  Turkish  Cypriot  community  to  make 
this  programme  a  success  and  in  particular  to  ensure  its  sustainability  in  the  long-
term.  Turkish  Cypriot  stakeholders  are  also  consulted  about  their  needs  for  future 
funding.  Turkish  Cypriot  experts  took  part  in  evaluation  panels  also  for  the  2009 
edition  of  the  Programme  that  was  contracted  in  2010.  They  play  a  key  role  in 
project steering committees.  

Due  to  the  particular  conditions  of  implementation  of  the  Aid  Programme,  a 
Programme  Team  was  set  up in 2006  within  the Commission's Directorate-General 
for  Enlargement.  Working  on  a  long-term  mission  in  Cyprus,  it  uses  the  EU 
Programme  Support  Office  (EUPSO)  located  in  the  northern  part  of  Nicosia.  This 
office  provides  a  venue  for  meetings  and  seminars  with  Turkish  Cypriot 
stakeholders.  It  also  allows  direct  monitoring  of  projects  implementation.  Office 
logistics continue to be provided by a private contractor (Deutsche Gesellschaft für 
Internationale  Zusammenarbeit  GmbH  -  GIZ)  under  a  contract  running  until  June 
2012.  The  Representation  of  the  Commission  in  Cyprus  also  provides  a  venue  for 
meetings and seminars. 

Since  2010  staff  expenses  are  financed  under  the  administrative  budget.  At  the 
beginning  of  the  reporting  period,  the  Programme  Team  staff  decreased  from  29 
persons  (3  Commission  officials  and  26  contract  agents)  to  22  (respectively:  2  and 
20).  This  reduction  affects  in  particular  the  procurement  team  and  requires  strict 
priority setting and reallocation of staff resources to ensure adequate monitoring. 

4. 

IMPLEMENTATION DURING THE REPORTING PERIOD 

4.1. 

General overview  

The  Aid  Programme  entered  into  the  phase  of  the  fully  fledged  implementation. 
Efforts concentrated on monitoring, ensuring projects' sustainability and building up 
capacity  of  beneficiaries  to  take  over  projects  when  completed,  in  particular  large 
scale  works  and  supplies.  Lack  of  experience  with  regard  to  the  implementation  of 
grant contracts by Turkish Cypriot beneficiaries has required the need of training as 
well as very close hands-on monitoring.  

The total number of contracts being implemented in 2010 amounted to 984 (works, 
services, supplies and grants), out of which 200 were closed. 

In  the  course  of  2010,  funding  from  the  Aid  Programme  provided  a  major 
contribution to confidence building measures as de-mining, support to the CMP and 

EN 

2 

   EN 

 
the opening of the new crossing point at Kato Pyrgos and Karavostasi (also known as 
Limnitis/Yeşilırmak crossing point). 

4.2. 

Progress by objectives  

The  overall  objective  of  the  Aid  Programme  is  to  facilitate  the  reunification  of 
Cyprus  by  encouraging  the  economic  development  of  the  Turkish  Cypriot 
community  with  particular  emphasis  on  the  economic  integration  of  the  island,  on 
improving  contacts  between  the  two  communities  and  with  the  EU,  and  on 
preparation  for  the  implementation  of  the  EU  law  in  case  of  a  comprehensive 
settlement of the Cyprus problem. 

4.2.1.  Objective 1: Developing and restructuring of infrastructure 

In the water sector, the replacement of old concrete asbestos water distribution pipes 
in  the  northern  part  of  Nicosia,  Kyrenia,  Gonyeli  and  Lefke/Lefka  was  largely 
completed by end 2010. In Nicosia, based on data provided by the Turkish Cypriot 
beneficiaries  this  led  to  15%  reduction  in  water  losses.  Uninterrupted  water  supply 
could  be achieved  in  the  winter  season  for  the  first  time  since  many  years.  The 
supply of water laboratory equipment was also completed. 

Works  on  the  major  water  and  wastewater  investments  in  Famagusta  and 
Morphou/Güzelyurt fell behind schedule during 2010 but both are still expected to be 
completed and commissioned in 2011. Works started in 2010 on the construction of a 
new  bi-communal  wastewater  treatment  plant  at  Mia  Milia/Haspolat,  which  is 
scheduled for completion in the second half of 2012 (implemented by UNDP). 

for 

contract 

construction  of  a 

seawater  desalination  plant 

at 
The 
Sirianokhori/Kumköy  was  signed  in  December  2009  with  a  suspensive  clause  to 
allow time to secure from the Turkish Cypriots adequate assurance firstly of free and 
unrestricted  access  to  the  site  and  secondly  of  their  assistance  for  smooth,  efficient 
and  effective  implementation.  After  receiving  such  assurances,  the  suspension  was 
lifted in August 2010 with the start of the first phase of the contract, comprising pilot 
trials  and  detailed  design.  However  in  October  2010,  restrictions  on  access  were 
introduced  which  delayed  the  finalisation  of  the  first  phase  and  challenged  its 
continuation. 

On nature protection, training continued. Preparation of the draft management plans 
continued for the potential Natura 2000 areas with the public consultation meetings 
due  in  early  2011. Construction  of  facilities  for  management  and  protection  in  four 
areas  started  (delayed  for  some  months  due  to  the  discovery  of  archaeological 
remains)  as  well  as  the  establishment  of  a  network  of  nature  trails.  Delivery  of 
supplies for nature protection including an automatic forest fire detection system was 
partially  completed.  The  decision  to  allocate  a  university  campus  within  a  special 
protected area was reversed by Turkish Cypriots. 

In  the  solid  waste  sector,  the  main  activities  focused  on  the  commencement  and 
ongoing  implementation  of  the  works  contracts  at  the  Koutsoventis/Güngör  and 
Famagusta sites. As the property issue was solved, the Kato Dhikomo/Aşağı Dikmen 
project  progressed  as  well. The  project  on  Medical  Waste  Facility  implemented  by 
UNDP  was  close  to  completion  with  the  equipment  to  be  delivered  in  early  2011. 

EN 

3 

   EN 

 
Technical assistance focused on further restructuring of existing waste management 
services. The establishment of an operating entity to take over the management of the 
new  solid  waste  management  system  did  not  progress  as  expected  during  the 
reporting  period.  Equipment  for  the  implementation  of  the  biodegradable  waste 
composting project was supplied. 

In  the  energy  sector, most  of  the  supply  contracts  have  been  successfully  finalised. 
The  electrometers  and  the  related  automated  reading  system,  the  reactive  power 
compensation equipment, the meter calibration laboratory, the pollution control and 
weather/wind  monitoring  system,  the  Supervisory  Control  and  Data  Acquisition 
(SCADA) system and the customer care system for the electricity utility have been 
delivered and installed in 2010. In some cases beneficiary’s action (to secure a better 
location, to connect to power supply, to employ additional staff) is necessary for an 
effective use of the investments. The works on the Solar Power Plant have started. 
On other contracts progress was limited. Under the interconnection metering contract 
the  preparation  of  the  installation  sites  by  the  beneficiary  is  still  pending.  The 
technical assistance for the restructuring of the electricity utility, despite adapting its 
objectives  to  the  needs  of  the  beneficiary,  lacked  the  full  cooperation  of  the 
counterparts to enable timely and effective completion. 

In  the  telecommunications  sector,  the  revised  configuration  of  the  network  will  be 
incorporated into the contract. It was proposed by the contractor based on the actual 
situation  identified  during  the  sites  survey.  The  sites  preparation  was  initiated 
towards  the  end  of  the  year  and  the  progress  matched  the  contractor’s  installation 
planning. The technical assistance component progressed  slower than expected. No 
decision were taken to separate the provision of services from the network operation 
or to liberalise the sector .  

Under  the  objective  for  traffic  safety  projects  the  technical  assistance  contracts  for 
the  preparation  of  traffic  management  plans  for  local  communities  and  for  the 
intercity  road  network  have  completed  their  tasks  and  submitted  the  final  reports. 
The technical assistance for creating an effective accident information database and 
data collection system to strengthen the knowledge of traffic incidents finalised the 
design of the system and integrated it with the hardware delivered under a separate 
supply  contract.  The  testing  of  the  system  and  training  for  users  is  ongoing.  The 
technical  assistances  for  the  improvement  of  vehicle  inspections  and  of  the  drivers 
licensing  procedure  have  provided  valuable  advice.  The  installation  of  the  periodic 
vehicle  inspection  equipment  was  delayed  due  to  the  decision  of  the  beneficiary  to 
locate it on an inspection lane still to be built. The education campaign to promote 
traffic safety and raise awareness was developed and will be implemented in 2011. 
The  technical  specification  for  the  project  aiming  at  the  elimination  of  traffic 
accident “black spots” has been revised. 

4.2.2.  Objective 2: Promoting social and economic development 

The four  technical  assistance  teams (Rural  Development  Support  Team,  Animal 
Husbandry,  Crop  Husbandry,  Programme  Management  Unit),  funded  under  the 
Rural Development Sector Programme have delivered targeted training and technical 
assistance to farmers, veterinarians, and rural development experts, central and local 
stakeholders. The teams have also supported 225 grant beneficiaries of the following 
grant  schemes  “Improving  agricultural  production”,  “Supporting  rural  enterprise”, 

EN 

4 

   EN 

 
"Community development through Village Initiatives".  The  equipment  from  supply 
contracts  for  veterinary  laboratories  and  crop  husbandry  were  delivered  and  are  in 
use. The Rural Development Support Team revised and finalised a provisional Rural 
Development  Plan  and  two  Local  Action  Strategies  in  respect  of  underlying  EU 
principles to rural development. 

Under the project Upgrading of Urban and Local infrastructure implemented in joint 
management  with  UNDP,  the  seventh  new  crossing  point  was  opened  linking  the 
villages  of  Kato  Pyrgos/Asagi  Pirgo  and  Yeşilırmak/Limnitis.  The  EU  funded  the 
feasibility study and contributed with €2.5 million to the works. Rehabilitation works 
in several villages in the northern part of Cyprus (i.e Hisarköy/Kampyli, Akincilar/ 
Louroukina)  were  finalised.  The  facades  of  the  buildings  alongside  one  side  of  the 
Ledra street crossing point were restored. Renovation of the market in the walled city 
of Nicosia started.  

15  new  grant  contracts  were  signed  with  local  schools  for  a  total  value  of 
approximately  €0.5  million  to  support  modernisation  of  education  techniques. 
Automotive and printing equipment was delivered to vocational schools. 

The technical assistance for the ongoing reform of primary and secondary education 
concentrated on building the capacities of the main stakeholders including intensive 
training  to  a  core  team  of  inspectors,  study  visits,  training  and  support  on  Child 
centred  education,  quality  standards  development  and  input  for  the  development  of 
the European Information Management System. 

Under  the  project  for  life-long  learning,  social  inclusion  and  active  labour  market 
measures  some  of  31  grants  awarded  to  SMEs,  chambers  and  other  training 
the 
organizations  were  completed.  Technical  assistance  was  provided  for 
development  and  promotion  of  vocational  education  and  training  systems,  life-long 
learning and active labour market measures, including the opening of a job center in 
Nicosia  and  study  visits  and  conferences  abroad.  Efforts  were  concentrated  on 
training the stakeholders including career counseling.  

In  support  to  SME  competitiveness,  32  contracts  within  2  grant  schemes  worth  of 
€4.5  million  in  total  were  ongoing  during  the  reporting  period.  The  outcomes 
expected from the SME grants are to increase competitiveness of the Turkish Cypriot 
private  sector  through  upgrading  physical  equipment  and  aligning  business 
management  practices  to  those  in  the  EU.  The  implementation  of  the  majority  of 
these contracts have been delayed due to lack of experience of the beneficiaries with 
EU procurement rules and a slow procedure of bank guarantees provision caused late 
pre-financing payments. In addition, the private sector has been supported through a 
technical assistance contract (€2.75 million) targeted at mainstream institutions and 
actions 
field  of  sustainable  economic  and  ICT  development.  The 
implementation started from the second half of 2010. The major outcome to date is 
the  expert  assistance  provided  for  the  drafting  of  a  Private  Sector  Development 
Strategy.  

the 

in 

EN 

5 

   EN 

 
4.2.3.  Objective 3: Fostering reconciliation, confidence building measures, and support to 

civil society 

Reconciliation, confidence building measures and support to civil society: Out of the 
44  projects  granted  2  have  been  cancelled  on  the  request  of  beneficiary  (lack  of 
capacity  to  implement  the  contract).  Many  of  the  beneficiaries  have  requested 
extensions  in  project  duration.  Grant  monitoring  has  been  carried  out  by  external 
experts  for  financial  monitoring  and  operational  monitoring  by  the  Programme 
Team.  

The Civil Society Support Team Technical Assistance provided guidance and support 
to  applicants  based  on  counselling  for  grants  management  and  capacity  building 
activities. 

The EU continued to be the single biggest donor to the activities of the Committee of 
Missing Persons that aims to establish the fate of those persons declared missing by 
both communities as a consequence of the tragic events of 1963-64 and 1974: The 
contract  of  €3  million  will  be  finalised in February 2011. A documentary has been 
prepared and distributed to inform about these activities.  

Demining: The buffer-zone is expected to be declared mine-free by April 2011. The 
UN  suggested  to  proceed  with  the  demining  outside  the  buffer  zone  but  the 
Commission  for  the  moment  has  neither  a  political  mandate  nor  resources  to 
continue works. 

The  activities  of  the  project  Academy  of  Political  Studies  implemented  by  the 
Council of Europe focus on increasing understanding of the key issues for the future 
of  the  island  within  the  EU.  For  its  second  academic  year  the  project  gathered  30 
selected young leaders from both Cypriot communities. 

4.2.4.  Objective 4: Bringing the Turkish Cypriot community closer to the European Union 

For  the  fourth  academic  year  of  the  Scholarship  Programme  a  total  of 96 
scholarships  (22  teachers,  10  undergraduates, 64  graduates)  was  granted. Students 
and  teachers  were  free  to  choose  study  and  training  programmes,  although  priority 
was  given  to  areas  where  there  is  a  lack  of  skilled  professionals  in  the  Turkish 
Cypriot  community  (Economics, European  studies,  all  Engineering  fields,  Public 
Administration,  Public  Finance).  Host  countries  were  the  United  Kingdom,  the 
Netherlands, Germany,  Italy,  Spain,  Sweden, Estonia,  Latvia, Greece,  Finland, 
Czech Republic, Poland and Hungary. 

Under the “Promotion of Youth Exchanges and other People-to-People Contacts” 15 
projects have been implemented. Some of the projects funded in the second call have 
requested extension of the project duration. All projects will be finalised in 2011. 

The  EU  Infopoint  has  become  an  important  source  of  information  for  the  Turkish 
Cypriots regarding both EU and Aid Programme related questions and inquiries. Its 
website  was  launched  in  2010.  InfoPoint  prepared  26  visibility  and  informative 
events  (study  visits,  conferences,  seminars,  public  lectures  on  EU  history, 
institutions,  decision  making  processes  and  policies  as  well  as  tailor-made  training 
courses on procurement rules and project management). It hosted several grant award 

EN 

6 

   EN 

 
ceremonies for the Aid Programme. The Infopoint produced/translated into Turkish 7 
publications  and  22  fact  sheets  on  the  Aid  Programme.  Two  Quantitative  Surveys 
have been prepared in order to measure the Turkish Cypriots’ perceptions of the EU 
and  the  EU’s  activities  concerning  the  Turkish  Cypriots.  To  supplement  this  data, 
three more Qualitative Studies were conducted. Sixteen events were broadcasted in 
local TV. As the demands of the beneficiary community become more explicit, the 
Infopoint  needs  to  meet  this  challenge  by  continuing  to  improve  the  quality  of  its 
services.  

4.2.5.  Objective 5: Preparing the Turkish Cypriot community to  introduce  and implement 

the acquis communautaire  

The  European  Commission's  Technical  Assistance  Information  Exchange  (TAIEX) 
instrument is used as  the  main  tool  for delivering assistance to prepare the Turkish 
Cypriot community for implementation of the EU acquis following a comprehensive 
settlement to the Cyprus problem. 

TAIEX  facilitated  365  technical  assistance  activities  such  as  training  courses, 
workshops,  expert  missions  including  assistance  provided  by  experts  remotely  and 
study  visits  in  order  to  support  the  achievement  of  the  objectives  of  the  Aid 
Regulation. 

Activities continued to focus mainly on the Programme for the Future Application of 
the  Acquis  (PFAA).  The  PFAA  provides  a  framework  for  planning  and  delivering 
technical  assistance  and  training.  Assistance  was  provided  in  13  sectors  of  the 
PFAA3.  During  the  course  of  2010  the  Turkish  Cypriots  expressed  an  interest  in 
receiving technical assistance in a further 3 acquis areas4. 

At the end of 2009 TAIEX support to the Turkish Cypriots moved to a medium term 
project  basis  in  order  to  achieve  its  objectives  more  efficiently  and  effectively.  A 
total  of  97  experts  from  EU  Member  State  public  administrations  were  selected  to 
support medium term technical assistance projects. 

TAIEX provided training on the preparation of legal texts aligned with the acquis for 
the  purpose  of  these  being  immediately  applicable  upon  the  entry  into  force  of  a 
comprehensive  settlement.  Linked  to  the  future  management  of  EU  funds  after  a 
settlement,  training  continued  to  be  provided  in  the  area  of  public  expenditure 
management. 

Development  of  trade  across  the  Green  Line  was  also  supported  by  TAIEX.  EU 
Member  State  experts  were  regularly  mobilised  to  carry  out  the  necessary 
phytosanitary/veterinary  inspections  of  potatoes  and  fish,  in  order  to  facilitate  this 
trade. 

3 

4 

Free Movement of Capital; Public Procurement; EU Company Law; EU Competition Policy; Financial 
Control;  Financial  Services;  Agriculture  and  Rural  Development;  Food  Safety,  Veterinary  and 
Phytosanitary  Policy;  Road  Transport;  Statistics;  Social  Policy  and  Employment;  Environment; 
Consumer and Health Protection 
Mutual  Recognition  of  Professional  Qualifications,  Intellectual  Property  Rights,  Free  Movement  of 
Goods. 

EN 

7 

   EN 

 
                                                 
The  three  equipment  supply  contracts  for air quality monitoring were implemented 
and equipment is being used. The two ongoing technical assistance contracts for this 
sector  have  focused  on  establishing  daily  quality  control  and  quality  assurance 
procedures for running the equipment supplied, assisted in development of air quality 
monitoring plans. Turkish Cypriots need to ensure that adequate staffing or funds to 
outsource  services  is  provided  to  manage  the  air  quality  monitoring  stations  and 
elaborate the data. 

4.2.6. 

Studies 

A  €1  million  Trust  Fund  with  the  World  Bank  to  carry  an  "Economic  analysis 
programme  for  growth  and  sustainable  development"  was  delayed  due 
to 
disagreements between the Republic of Cyprus and the World Bank on terminology 
to be used. 

4.3. 

Financial execution (contracts and payments) 

4.3.1.  Contracting  

€2.5  million  of  the  2009  commitments  appropriations  was  available  out  of  which 
78% was contracted. 106 new contracts for scholarships 2010/2011 and schools have 
been signed. 

In  2006-2010  the  total  allocation  for  this  Aid  Programme  amounted  to  €264.5 
million. 

4.3.2.  Payments 

The European Commission disbursed €62.7  million in 2010, around 18% lower than 
foreseen  in  the  initial  planning.  This  was  due  to  the  late  start  of  the  seawater 
desalination project of €27.5 million and rural development grants of € 4 million in 
total.  

In total €132 million (52% of the overall contracted amount) was disbursed by end-
2010. 

4.4.  Monitoring  

The Interim Review Mechanism (IRM) serves as a forum to discuss in detail with the 
beneficiaries the implementation of the programme. It met twice in 2010.  

2010  also  saw  the  launch  of  a  separate  mechanism  to  monitor  assistance  delivered 
through TAIEX. 

In 2010 the activities of the Programme Team concentrated on monitoring. The main 
instruments  are  field  visits  and  participation  in  project’s  steering  committees.  In 
addition, external support for the financial monitoring has been contracted. 

4.5. 

Audit and controls 

The  operational  audit  unit  of  DG  Enlargement  audited  a  sample  of  contract  and 
payment transactions. The report is expected in the first quarter of 2011. 

EN 

8 

   EN 

 
A  fact  finding  mission  of  the  European  Court  of  Auditors  took  place  in  November 
2010 in preparation of a performance audit in 2011.  

4.6. 

Evaluation. 

In 2010 mid term sectoral evaluations were carried out in the civil society and rural 
development  sectors.  The  conclusion  underlined  the  necessity  of  continuous 
multiannual funding to ensure sustainability of on-going projects.  

4.7. 

Information, Publicity and Visibility  

During the reporting period, 17 press releases were published on programme-related 
issues. The majority of visibility activities were performed by the InfoPoint.  

The main visibility events were the opening of the Kato Pyrgos/Karavostasi crossing 
point  and  the  launch  of  the  EU  funded  documentary  on  the  CMP  attended  by 
Commissioner Füle in October 2010.  

According  to  the  Quantitative  Survey  (August  2010),  the  Turkish  Cypriot’s 
perception  of  the  EU  was  positively  affected  and  the  Infopoint’s  activities 
contributed to it.  

The activities of the EC Representation towards the Turkish Cypriots contributed to 
the visibility of the EC aid and to increase the trust towards the EU. 

4.8. 

Consultations with the Government of the Republic of Cyprus 

Regular meetings were held with representatives of the Government of the Republic 
of Cyprus, in particular when Commissioner and senior Commission officials visited 
the island.  

As regards the verification of property ownership, the Commission relied in 2010 on 
the  continued  co-operation  with  the  relevant  services  of  the  Government  of  the 
Republic  of  Cyprus,  in  particular  with  regard  to  enabling  to  proceed  with  the 
rehabilitation of the old dumpsite near Kato Dhikomo/Aşağı Dikmen partly located 
on land owned by Greek Cypriot private owners. 

5. 

CONCLUSIONS 

During the reporting period, activities focused on:  

(1) 

Implementation and monitoring of projects. 

(2) 

Programming of the 2011 funds. 

Some  challenges  mentioned  in  previous  reports  are  still  present.  In  the  reporting 
period issues affecting the Aid Programme implementation included: 

(1) 

Cooperation  between  Turkish  Cypriot  and  Greek  Cypriot  communities  is 
necessary  to  achieve  the  goal  of  the  Aid  Programme,  but  needs  time  and 
support through different activities.  

EN 

9 

   EN 

 
(2) 

(3) 

(4) 

(5) 

(6) 

Low  absorption  capacity  by  the  beneficiary  community:  Building  up  the 
capacity  is  a  long-term  process.  However,  there  is  continuous  improvement 
with the progress of projects implementation.  

Lack of experience with EU procurement rules delays the implementation of 
grants. The beneficiaries are assisted by the Programme Team and technical 
assistance teams to gain the experience.  

Risks  to  the  sustainability  of  the  large  infrastructure,  which  requires  the 
Turkish Cypriots to make available the necessary skilled staff and funds.  

Insufficient site preparation in energy and telecom projects caused delays.  

Commission staff reductions due to the budgetary constraints requiring strict 
priority  setting  and  reallocation  of  staff  resources  to  ensure  adequate 
monitoring  and  presenting  risks  to  the  ability  to  communicate  on  the 
achievements of the programme. 

EN 

10 

   EN