COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Cyprus Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) (ST 10686/21 INIT; ST 10686/21 ADD 1) of 20 July 2021 on the approval of the assessment of the recovery and resilience plan for Cyprus
Date: 2023-11-16
Institutions: European Commission, Secretariat-General
Subjects: Cyprus, EU aid, digital transformation, economic recovery, economic reform, energy policy, fiscal policy, green economy, investment, social policy, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.11.2023  SWD(2023) 377 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Cyprus Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) (ST 10686/21 INIT; ST 10686/21 ADD 1) of 20 July 2021 on the approval of the assessment of the recovery and resilience plan for Cyprus {COM(2023) 735 final}  
 
 
Table of contents 
1. 

Executive summary ............................................................................................................................... 2 

2.  Objectives of the modification of the plan ........................................................................................... 3 

3. 

Summary of the assessment of the plan ............................................................................................ 11 

3.1. 

Comprehensive and adequately balanced response to the economic and social situation ...... 11 

3.2. 

Link with country-specific recommendations and the European Semester ............................... 13 

3.3.  Growth potential, job creation, economic, institutional and social resilience,  European Pillar of 
Social Rights, mitigating the impact of the crisis, and social territorial cohesion and convergence ...... 13 

3.4. 

The principle of ‘do no significant harm’ .................................................................................... 15 

3.5.  Green transition .......................................................................................................................... 15 

3.6. 

Digital transition .......................................................................................................................... 16 

3.7. 

Lasting impact of the plan ........................................................................................................... 17 

3.8.  Milestones, targets, monitoring and implementation................................................................ 17 

3.9. 

Costing ........................................................................................................................................ 18 

3.10.  Controls and audit ....................................................................................................................... 18 

3.11.  Coherence ................................................................................................................................... 23 

3.12.  REPowerEU ................................................................................................................................. 23 

3.13.  Cross-border or multi-country dimension or effect ................................................................... 23 

ANNEX I: Climate tracking and digital tagging ........................................................................................ 27 

1 

 
 
 
 
 
 
 
 
 
 
 
1.  EXECUTIVE SUMMARY  

In  2022,  the  global  slowdown,  supply  disruptions  and  rising  energy  prices  led  to  high 
inflation and a deceleration of economic growth in Cyprus, while the labour market proved 
robust. In light of an economy heavily dependent on fossil fuel imports and the socio-economic 
challenges  that  Cyprus  has  been  facing  since  the  beginning  of  2022,  the  country  submitted  a 
modified Recovery and Resilience Plan (RRP) along with a REPowerEU chapter on 1 September 
2023. Specifically, Cyprus proposed modifications to its RRP pursuant to three legal bases. Firstly, 
in accordance with Article 18(2) of Regulation (EU) 2021/241, Cyprus updated its RRP to take 
into account the updated maximum financial contribution published on 30 June 2022. Secondly, 
in accordance with Article 21(1) of Regulation (EU) 2021/241, Cyprus considered the RRP to be 
partially no longer achievable due to objective circumstances and made a reasoned request to the 
Commission to make a proposal to amend the Council Implementing Decision. Finally, Cyprus 
has relied on Article 21(c) to include additional resources from Emission Trading System (ETS) 
revenues and from the Brexit Adjustment Reserve (BAR) for its REPowerEU chapter.  

The modifications submitted by Cyprus under Article 18(2) and Article 21(1) of Regulation 
(EU) 2021/241 affect 74 measures of the initial plan. Specifically, under Article18 (2), against 
a reduction of its contribution by EUR 90 million, Cyprus proposes to fully remove 7 investments 
amounting to EUR 60.5 million and partially remove 4 investments,  cutting another EUR  29.5 
million.  Under  Article  21,  Cyprus  proposes  amendments  to  48  measures  based  on  objective 
circumstances. The amendments include increasing the estimated costs, postponing deadlines and 
in  some  instances  decreasing  the  targets  proportionately  to  increases  in  cost.    In  addition,  17 
measures are amended because of clerical errors. Some measures are affected by changes under 
several legal bases. 

Lastly,  Cyprus  proposes  4  new  measures  and  5  scale-ups  of  existing  measures,  under  its 
REPowerEU chapter to address the key energy challenges that Cyprus is currently facing.  

The proposed new reforms include the regulation and the facilitation of the participation of Active 
Customers,  Renewable  Self-consumers,  Citizen  Energy  Communities,  Renewable  Energy 
Communities and Demand Response through Cumulative Representation in the electricity market 
and a regulatory framework for the connection of EV recharging points to the distribution network. 
The new investments aim to promote extensive energy upgrading of housing stock and a thematic 
research in enterprises for energy production, storage, and distribution solutions. The chapter also 
includes the scale-up of a number of existing investments aimed at: (i) promoting renewables and 
individual energy efficiency measures in dwellings and tackling energy poverty in households with 
vulnerable electricity consumers, (ii) encouraging the use of renewables and energy savings by 
local/wider public authorities and facilitating the transition of local communities towards climate 
mitigation  and  adaptation,  (iii)  promoting  a  widespread  use  of  Electric  Vehicles  (EVs),  (iv) 
enhancing the competitiveness of large enterprises in the manufacturing sector and (v) promoting 
research and innovation for the green transition.  

Based on the assessment of the submitted modification and the REPowerEU chapter, the Cypriot 
modified plan receives an A-rating on all criteria, except for costing, where the plan receives a B-
rating (unchanged from the original plan assessment).   

2 

 
 
 
 
 
 
 
(1) 
Balanced 
Response 

(2) 
CSRs 

(3) 
Growth, 
jobs… 

(4) 
DNSH 

(5) 
Green 
target 

(6) 
Digital 
target 

(7) 
Lasting 
impact 

(8) 
M & T 

(9) 
Costing 

(10) 
Control 
Systems 

(11) 
Coherence 

(12) 
REPowerEU 

(13) 
Cross-
border  

A 

A 

A 

A 

A  

A  

A 

A 

B 

A 

A 

A 

A 

2.  OBJECTIVES OF THE MODIFICATION OF THE PLAN  

2.1. The main newly emerged challenges 

In 2022, Russia’s invasion of Ukraine led to a surge in energy and commodity prices in Cyprus 
and the EU as a whole. The measures adopted by Cyprus largely mitigated the impact of the energy 
crisis on both households and businesses and negative spillovers on the Cypriot economy have 
been contained despite the links with the Russian economy. However, inflation remained high at 
+8.1%  in  2022  and  economic  growth  slowed  (5.6%  vs.  6.6%  in  2021)  amid  supply  chain 
disruptions and high energy and commodity prices. The 2023 Country Report for Cyprus identified 
challenges related to the business environment linked notably to the governance of state-owned 
enterprises,  further  reduction  of  non-performing  debt,  deployment  of  renewable  energies, 
sustainable  water  management  and  skill  mismatches  on  the  labour  market,  among  others.  In 
addition, Cyprus faces macroeconomic vulnerabilities, which are assessed in the In-depth Review 
2023, related to the private, government and external debt, a large current account deficit and a 
still high ratio of non-performing debt. In the context of Cyprus’ current challenges, the proposed 
revision  of  its  RRP  is  twofold:  including  a  new  REPowerEU  chapter  to  the  original  plan  and 
modifying existing measures in line with the provisions of the RRF Regulation. 

2.2. Overview of the new and modified components 

Cyprus’ modified recovery and resilience plan adds a REPowerEU chapter to the original 
plan pursuant to Article 21(c) of the RRF Regulation. The modifications proposed under the 
plan and the newly integrated REPowerEU chapter contribute to addressing the country specific 
recommendations  for  Cyprus  presented  in  the  context  of  European  Semester  2022  and  2023 
cycles.  

Pursuant  to  Article  18(2)  of  the  RRF  Regulation,  Cyprus  has  justified  a  part  of  its 
modifications by the decrease of its maximum financial contribution. The maximum financial 
contribution for Cyprus was updated on 30 June 2022 and decreased from EUR 1 006 million to 
EUR 916 million (before the deduction of support expenses). To take this update into account, 
Cyprus proposes to remove seven measures fully and four measures partially from its RRP. 

Pursuant to Article 21(1) of the RRF Regulation, Cyprus has justified the modification of 48 
measures due to objective circumstances. While the Cypriot economy managed to contain the 
negative impact of Russia’s unprovoked military aggression against Ukraine on the GDP growth, 

3 

 
 
 
 
 
 
 
 
 
 
  
inflation increased considerably driven mainly by the stark rise in energy prices and in particular 
of imported fossil fuels on which Cyprus depends heavily. High energy prices, disrupted supply 
chains and the partial indexation of wages have put upward pressure on consumer prices, which 
led  it  to  peak  at  8.1%  in  2022.  Tightening  monetary  policy  has  raised  investment  costs  and 
contributed together with increased construction material price and supply disruptions to delays 
and cost re-evaluations in the procurement of some of the initially planned projects under the RRP. 
At  the  same  time,  unexpected  complexities  and  inefficiencies  surfaced  in  some  challenging 
measures, requiring adjustments to the timeline and, in some circumstances, the  project design. 
Finally, Cyprus proposed to modify certain measures to implement better alternatives to achieve 
or increase their original ambition.    

The  main  elements  of  the  amended  RRP  and  REPowerEU  chapter  are  listed  below  by 
component:   

Component  1.1  (resilient  and  effective  health  system,  enhanced  civil  protection:  seven 
measures under this component are affected by the modification proposal, four under Article 21, 
three  on  clerical  error  grounds  and  one  under  both  Article  21  and  on  clerical  error  grounds. 
Changes notably concern i) a reduction in a target for sentinel doctors for influenza surveillance 
in  this take-up type of measure  because of  a  lack of demand from  doctors to  participate in  the 
scheme, ii) a postponement of targets due to the additional time needed, as it has emerged from 
the  stakeholder  consultation,  for  the  accreditation  process  required  to  register  hospitals  in  the 
National Health System and iii) a reduction of targets for sub-investments for the enhancement, 
modernisation, and upgrade of State hospitals due to higher costing due to inflation. For the latter 
investment in State Hospitals, also changes to intervention fields to lower tagged ones, as a result 
reducing green tagged cost, are proposed.  

Component 2.1 (climate neutrality, energy efficiency and renewable energy): based on Article 
21  (mostly  invoking  inflation,  supply  chain  disruptions  and  delays  in  tender  procedures)  eight 
measures are proposed to be amended, of which one is also proposed to be partially removed under 
Article 18. Changes notably concern the adjustment of scope of some energy efficiency measures 
and  the  shifting  of  timelines  for  certain  investments  (installation  of  smart  meters  by  the 
Distribution  System  Operator,  delivery  and  acceptance  of  firefighting  aircraft,  vehicles  and 
equipment under a Forest firefighting investment), and for the entry into force of a law introducing 
a carbon tax for fuels, a levy on water and a charge on household/ landfill waste. However, two 
investments  in  the field of renewables and energy efficiency are also  being upscaled under the 
REPowerEU chapter.  

Component  2.2  (sustainable  transport):  on  the  basis  of  Article  21  (invoking  supply  chain 
disruptions and inflation) three investments, in the field of Sustainable Urban Mobility Projects, 
electro-mobility infrastructure and for the promotion of widespread use of electric vehicles, are 
proposed  to  be  modified,  with  proportionate  reductions  in  scope  and  limited  extensions  in 
timelines. An investment for the promotion of widespread use of electric vehicles is also being 
upscaled under the REPowerEU chapter.  

4 

 
 
 
 
 
 
 
Component  2.3  (smart  and  sustainable  water  management):  six  measures  under  this 
component are affected by the modification proposal, two under Article 21 (notably inflation and 
supply  chain  disruptions)  and  one  under  Article  18  (removal  of  the  investment  on  the  Eastern 
Nicosia infrastructure for wastewater treatment’s effluent re-use), the rest are modified on clerical 
error grounds. For the modified measures, Cyprus notably proposes to postpone one milestone on 
the delivery of vessels for marine protection and one intermediate target on the construction of two 
reservoirs.  

Component 3.1 (new growth model and diversification of the economy): without lowering the 
ambition of the measures, this component includes eleven suggested modifications mostly based 
on  Article  21.  The  most  important  one  is  the  limited  delay  of  the  creation  of  green  points.  In 
addition, the measure on the establishment of the Orounda livestock waste and animal-by-product 
management facilities is removed from the loan part based on Article 21, in particular due to the 
completed feasibility study requiring a re-design of the whole project. In parallel, the construction 
of a marine aquaculture is transferred to the loan compartment of the plan. Based on Article 18, 
the setup of the first Eco-Industrial Science Park Waste and some parts of a measure related to 
circular economy were removed. Finally, the measure on the support of large companies for their 
competitiveness enhancement is topped-up under REPowerEU and broadened to also cover energy 
efficiency  investments,  due  to  the  lack  of  demand  and  of  eligible  projects  under  the  previous 
design. 

Component 3.2 (enhanced research and innovation): one investment is proposed to be scaled-
up under REPowerEU and modified, since, following the first call, more technologies could be 
developed under the scheme including key clean-tech and low-carbon technologies. One reform 
(National  R&I  Policy  and  policy  tools) is  proposed  to  be  modified,  as  the  Action  Plan  will  be 
improved to also take into account the findings of the revised smart specialisation strategy and 
cover a longer timeframe. 

Component 3.3 (business support for competitiveness): this component includes five suggested 
modifications based on Article 21, two removals based on Article 18 (2) and two modifications on 
clerical error grounds. The amendments under Article 21, mainly introduce limited delays in the 
completion of milestones based on Article 21, due to unforeseen delays in the preceding steps. 
Particularly,  the  modernisation  of  the  Companies  Law  is  delayed  due  to  tendering  problems. 
Moreover, the description of the milestones of four measures is fine-tuned without reducing their 
ambition  (i.e.  the  enhancement  of  fast-track  business  activation  mechanism,  the  creation  of  a 
regulatory sandbox to enable FinTech, the establishment of an equity fund, and the setup of an 
integrated  information  system  for  the  Registrar  of  Companies).  Two  investments  are  removed 
based on Article 18. 

Component 3.4 (modernising public and local authorities, making justice more efficient and 
fighting  corruption):  this  component  introduces  5  revisions  mostly  based  on  Article  21.  In 
particular, the investment for smart cities was amended to address the scarcity of demand from 
municipalities, and regeneration and revitalisation of Nicosia inner city had to be redesigned due 
to the impact of inflation on renovation costs. The measure on urban land consolidation is also 
backloaded due to emerged manifestly better alternative to achieve the objective by enlarging the 

5 

 
 
 
 
 
scope, while the digital transformation of courts is postponed due to unforeseen obstacles. Lastly, 
on the basis of  Article 18 the investment  on the  rationalisation of the shift system  through the 
implementation of a Roster Planning System was removed.   

Component 3.5 (safeguarding fiscal and financial stability): three measures are proposed to be 
modified under Article 21, to ensure their achievement by means of alternative and more efficient 
modalities.  In  particular,  limited  and  targeted  clarifications  are  introduced  to  the  reform  on 
enhancing supervision of Insurance and Pension Funds, to the reform on an Action plan for the 
development of a liability monitoring register and to the reform on a new legal framework and 
system of exchange of data and credit bureaus. Two measures are modified on the basis of a clerical 
error.  

Component 4.1 (upgrade infrastructure for connectivity): two measures under this component 
are affected by the modification proposal. The first relies on Article 21 due to a change in practices 
by market operators which had no interest in the scheme. The second relies on Article 18 (removal 
of the investment into a submarine link to Greece).  

Component 4.2 (promote e-government): five measures under this component are affected by 
the modification proposal, four under Article 21, as well as one amendment solely on clerical error 
grounds. Article 21 proposals notably concern: i) a reduction in targets for Digital Services Factory 
as the Cypriot authorities identified a more citizen-centric and  efficient organisational model to 
develop  digital  services;  ii)  a  reduction  in  an  intermediate  target  for  Digitalisation  in  various 
Central Government Ministries – Services, including due to the consequences of the Russian war 
of aggression and supply chain bottlenecks; iii) a postponement of three intermediate targets (for 
the  reform  on  Government-cloud,  mainly  due  to  the  need  to  take  into  account  the  recent 
cyberattacks  in  Cyprus  and  thus  a  need  for  a  new  cybersecurity  strategy,  for  Digitalisation  in 
various  Central  Government  Ministries  –  Services  for  the  above-mentioned  reasons  and  for 
Digitalisation  of  the  Cyprus  Ports  Authority,  due  to  missing  technical  requirements  and 
specifications that would be necessary to proceed with a request for tender and consequently with 
the signing of the contract).  

Component 5.1 (educational system modernisation, upskilling and retraining): four measures 
under this component are affected by the modification proposal, under Article 21 and based on a 
clerical error: i) removing the construction of one of the two technical schools, which were initially 
planned, due to inflation; ii) delay by one year of the digital transformation of school units due to 
the appeal  of the tender  procedures combined  with  the specificities  of this  technology  oriented 
project, which made the technological equipment specified in the tender documents unavailable; 
and iii) modification of the reform on the extension of free compulsory pre-primary education from 
the age of four due to a design of a better alternative way to implement the reform, as the creation 
of additional capacity in public and communal kindergartens, combined with an accompanying 
temporary  subsidy  scheme,  is  expected  to  have  a  considerably  more  long-lasting  and  positive 
impact, despite a longer implementation timeframe.   

Component  5.2  (labour  market,  social  protection,  and  inclusion):  four  measures  under  this 
component are affected by the modification proposal. Cyprus retains the ambition of 26 structures 

6 

 
 
 
 
 
in  total,  including  structures  for  children  or  persons  with  disabilities,  and  homes  for  children, 
adolescents  with  conduct  disorders  and  people  in  need  of  long-term  care,  however  the 
implementation will be through a governmental body, due to lack of interest of the private sector. 
On the Reform of the Social Insurance System and Restructuring of the Social Insurance Services, 
Cyprus requested the correction of a clerical error to define the examples of the social benefits 
described in the milestone, as foreseen in the initial plan. The budget of the investment for the 
creation of child centres in municipalities is modified due to inflation. 

Component 6.1 (REPowerEU chapter):   

Under the REPowerEU chapter and based on Article 21c of Regulation (EU) 2021/241, Cyprus 
has proposed measures for two new investments, two new reforms and five scaled up investments:  

Reform  C6.1R1  on  Regulating  and  facilitating  the  participation  of  Active  Customers, 
Renewable Self-consumers, Citizen Energy Communities, Renewable Energy Communities 
and  Demand  Response  through  Cumulative  Representation  in  the  electricity  market  will 
consist in creating at least one contact point by expanding the single contact point established as 
per the Renewable Energy Directive (EU) 2018/2001. This reform is expected to enable the uptake 
of renewable energy projects in the country, thereby allowing a faster penetration of renewable 
energy in the economy.  

Reform C6.1R2 on the introduction of a regulatory framework for the connection of electric 
vehicles’  recharging  points  to  the  distribution  network  focuses  on  the  establishment  of 
guidelines for the formulation of regulatory frameworks regarding the procurement of flexibility 
services  by  the  DSO  as  well  as  the  connection  of  Electric  Vehicle  Charging  Points  to  the 
Distribution  Network.  This  reform  is  expected  to  facilitate  the  rollout  of  EV  and  enable  final 
consumers to actively participate in the competitive electricity market. 

Investment C6.1I1 scaling up measure C2.1I2: Promoting renewables and individual energy 
efficiency measures in dwellings and tackling energy poverty, including in households with 
vulnerable  electricity  consumers  is  expected  to  increase  the  number  of  dwellings,  including 
households  of  vulnerable  electricity  consumers,  with  improved  energy  performance,  thus 
increasing energy savings and further tackling energy poverty. 

Investment  C6.1I2  scaling  up  measure  C2.1I3:  Encouraging  the  use  of  renewables  and 
energy  savings  by  local/wider  public  authorities  is  expected  to  lead  to  further  reduction  in 
primary energy consumption per year for local and wider public authorities. 

Investment  C6.1I3  on  Promoting  extensive  energy  upgrading  of  housing  stock  aims  at 
reducing the primary and final energy consumption and the CO2 emissions in existing households. 
In  addition,  the  scheme  will  promote  the  installation  of  Renewable  Energy  Systems  on  these 
households. The renovation programme is expected to lead, on average, to a 30% reduction in the 
Primary Energy Demand of the buildings renovated.  

7 

 
 
 
 
 
 
 
  
 
 
 
 
Investment C6.1I4 scaling up measure C2.2I3: Promote widespread use of Electric Vehicles 
(EVs) will increase the number of electric vehicles been purchased, leading to increased incentives 
to enterprises and individuals to shift to zero-emission vehicles and thus reduce consumption of 
fossil fuels for transports.    

Investment  C6.1I5  scaling  up  measure  C3.1I7:  Scheme  for  the  enhancement  of  the 
competitiveness  and  the  energy  efficiency  of  large  enterprises  in  Cyprus  will  increase  the 
number  of  large  enterprises  supported,  in  all  economic  sectors,  to  improve  their  energy 
performance, notably via energy efficiency measures, installation of photovoltaic systems.  

Investment C6.1I6 scaling up measure C3.2I3: Thematic research and innovation funding 
program on green transition will increase the number of enterprises engaged in green transition 
R&I activities, due to the support provided. 

Investment  C6.1I7  Thematic  research  in  enterprises  for  energy  production,  storage, 
transmission and distribution solutions focuses on grants for targeted R&I activities aiming to 
provide  solutions  to  bottlenecks  identified  in  energy  production,  storage,  transmission  and 
distribution (infrastructure, storage, grid etc.) that will enhance the national grid’s infrastructure 
functionality  and  efficiency,  accelerate  renewables  integration  and  significantly  reduce  the 
country’s energy needs. 

8 

 
 
 
 
 
 
Table of new and modified components and associated costs. 

Component 

1.1  Resilient  and  effective  health  system,  enhanced  civil 
protection 
2.1  Climate  neutrality,  Energy  efficiency  and  Renewable 
Energy 
2.2 Sustainable Transport 
2.3 Smart and Sustainable Water Management 

3.1 New growth model and diversification of the economy 

3.2 Enhanced Research and Innovation 
3.3 Business support for Competitiveness 
3.4  Modernising  public  and  local  authorities,  making 
justice more efficient and fighting corruption 
3.5 Safeguarding Fiscal and Financial Stability 
4.1 Upgrade infrastructure for connectivity 
4.2 Promote e-government 
5.1  Educational  system  modernisation,  upskilling  and 
retraining 
5.2 Labour market, social protection and inclusion 
6.1 REPowerEU 
TOTAL 

Status 

Modified 

Modified 

Modified 
Modified 

Modified 

Modified 
Modified 

Modified 

Modified 
Modified 
Modified 

Modified 

Modified 
New 

Costs (EUR 
million) 

            74 

          261 

            90  
            76 

          126  

           64  
            39  

            95  

            45  
            45  
            36  

            85  

            79  
          105  
        1,221  

Other elements not covered by assessment criteria  

The  previous  description  of  the  implementation  and  monitoring  aspects  of  the  plan  as  well  as 
gender equality, as reflected in the Staff Working Document (2021) 1961 final remains valid. Also, 
under investment  2.1I2  on Promoting renewables and individual energy efficiency measures in 
dwellings and tackling energy poverty in households with vulnerable electricity consumers which 
is upscaled under the new REPowerEU chapter the definition of vulnerable electricity consumers 
that can benefit from the scheme is expanded, by adding eight new categories of vulnerable groups 
(differentiated notably by income and disability criteria), hence allowing for approximately 1,400 
more households with vulnerable consumers to benefit from the scheme. 

•  State aid and competition rules fully apply to the measures funded by the Recovery and 
Resilience Facility. Union funds channeled through the authorities of Member States, like 
the RRF funds, become State resources and can constitute State aid. When this is the case 
and State aid is present, these measures must be notified and approved by the Commission 
before Member States can grant the aid, unless those measures are covered by an existing 

1 COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Cyprus, accompanying the document 
Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Cyprus 
{COM(2021) 398 final} 

9 

 
 
 
 
 
 
 
 
 
 
 
aid scheme or comply with the applicable conditions of a block exemption regulation, in 
particular the General Block Exemption Regulation (GBER) declaring certain categories 
of aid compatible with the internal market in application of Articles 107 and 108 TFEU. 
When State aid is present and it requires notification, it is the duty of the Member State to 
notify  State  aid  measures  to  the  Commission  before  granting  them,  in  compliance  with 
Article 108(3) TFEU. In this respect, the State aid self-assessment carried out by Cyprus 
in the recovery and resilience plan cannot be deemed a State aid notification. In as far as 
Cyprus  considers  that  a  specific  measure  contained  in  the  recovery  and  resilience  plan 
entails  de  minimis  aid  or  aid  exempted  from  the  notification  requirement,  it  is  the 
responsibility of Cyprus to ensure full compliance with the applicable rules.  

10 

 
 
 
 
 
  
 
 
 
3.  SUMMARY OF THE ASSESSMENT OF THE PLAN 

3.1. Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation 

Cyprus’  modified  plan  along  with  the  REPowerEU  chapter  includes  a  balanced  set  of 
reforms  and  investments  contributing  to  the  Union’s  economic,  social  and  territorial 
cohesion  by  referring  to  the  six  pillars  of  Article  3  of  the  Regulation  (EU)  2021/241.  The 
modification of the plan along with the REPowerEU chapter does not impact the assessment of 
the  contribution  of  the  plan  to  the  different  pillars,  as  the  nature  and  extent  of  the  proposed 
modifications  to  the  RRP  do  not  have  an  impact  on  the  previous  assessment  of  the  plan’s 
comprehensive and adequately balanced response to the economic and social situation, and on its 
appropriate contribution to all six pillars referred to in Article 3 of the RRF Regulation, as detailed 
in Staff Working Document SWD(2021) 196 final.  

The measures in the REPowerEU chapter contribute to the attainment of the Union’s 2030 
climate and energy targets and the objective of EU climate neutrality by 2050. The proposed 
measures  aim  to  incentivise  the  uptake  of  renewable  energy,  to  put  in  place  energy  efficiency 
measures  and  to  encourage  the  use  of  electric  vehicles.  The  implementation  of  the  measures 
included in the REPowerEU chapter are expected to contribute notably to supporting the objectives 
in Article 21c(3), points (b), (e) and (f) of Regulation (EU) 2021/241. The new energy efficiency 
investment is particularly ambitious, as the objective of the measure is to achieve, on average, at 
least a medium-depth level renovation as defined in Commission Recommendation on Building 
Renovation (EU) 2019/786. The scaled-up support scheme for the purchase of electric vehicles 
will lead to increased incentives to enterprises and individuals to shift to zero-emission vehicles 
and  thus  reduce  consumption  and,  by  consequence,  dependency  on  imports  of  fossil  fuels  for 
transports.  Both  investments  in  the  field  of  thematic  research  and  innovation  linked  to  green 
transition and energy issues are also noteworthy. 

Coverage of the six pillars of the Facility by the modified Cypriot RRP components  
●  =  investments  and  reforms  of  the  component  significantly  contribute  to  the  pillar;  ○  =  the  component  partially 
contributes to the pillar  

  Component 

Green 
transition  

Digital 
transformation  

Smart, 
sustainable & 
inclusive 
growth  

Social and 
territorial 
cohesion  

Health, and 
economic, 
social and 
institutional 
resilience  

Policies for 
the next 
generation  

Resilient and effective 
health system, enhanced 
civil protection 

Climate neutrality, Energy 
efficiency and Renewable 
Energy 

○  

●  

●  

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11 

 
 
 
 
 
 
 
 
 
 
  Component 

Green 
transition  

Digital 
transformation  

Smart, 
sustainable & 
inclusive 
growth  

Social and 
territorial 
cohesion  

Health, and 
economic, 
social and 
institutional 
resilience  

Policies for 
the next 
generation  

Sustainable Transport 

●  

Smart and Sustainable 
Water Management 

New growth model and 
diversification of the 
economy 

Enhanced Research and 
Innovation 

Business support for 
Competitiveness 

Modernising public and 
local authorities, making 
justice more efficient and 
fighting corruption 

Safeguarding Fiscal and 
Financial Stability 

Upgrade infrastructure for 
connectivity 

Promote e-government 

Educational system 
modernisation, upskilling 
and retraining 

Labour market, social 
protection and inclusion 

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12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Component 

Green 
transition  

Digital 
transformation  

REPowerEU chapter 

●  

Smart, 
sustainable & 
inclusive 
growth  

Social and 
territorial 
cohesion  

○  

○  

Health, and 
economic, 
social and 
institutional 
resilience  

Policies for 
the next 
generation  

***  
Taking  into  consideration  all  reforms  and  investments  envisaged  by  Cyprus,  its  modified  RRP 
continues to represent, to a large extent, a comprehensive and adequately balanced response to 
the economic and social situation, thereby contributing appropriately to all six pillars referred to 
in Article 3 of the RRF Regulation, taking the specific challenges and the financial allocation of 
Cyprus into account. This would warrant a rating of A under the assessment criterion 2.1 in Annex 
V to the RRF Regulation.    
The nature and extent of the proposed modifications to Cyprus’ recovery and resilience plan do 
not have a material impact on the previous assessment (rating of A) that the plan represents  a 
comprehensive and adequately balanced response to the economic and social situation, thereby 
contributing appropriately to all six pillars referred to in Article 3 of the RRF Regulation, taking 
the specific challenges and the financial allocation of [the Member State concerned] into account. 

3.2. Link with country-specific recommendations and the European Semester  

Overall, Cyprus’ modified RRP represents a comprehensive and adequate response to the 
economic and social challenges faced by  Cyprus. Although the modified plan removes some 
measures, it also introduces new reforms and investments under the REPowerEU chapter that help 
to maintain the coverage of a significant subset of the challenges identified in the country-specific 
recommendations (CSRs).  

In the 2022 and 2023 CSRs in the area of energy, Cyprus was recommended to reduce its overall 
reliance on fossil fuels and diversify its energy supply. Cyprus shall aim to exploit all untapped 
potential for  renewable  energy generation, accelerate  renewables deployment by using  suitable 
economic instruments and by making further investments to upgrade and modernise the electricity 
grid, including energy storage facilities.  In addition, Cyprus shall speed up the development of 
electricity  interconnections,  increase  energy  efficiency  measures,  also  with  a  view  to  energy 
poverty,  and  make  an  effort  into  shifting  towards  sustainable  transport.  Finally,  policy  efforts 
targeted at provision and acquisition of green skills are deemed necessary.   

Measures  included  in  the  REPowerEU  chapter  are  expected  to  promote  renewable  and 
sustainable transport and strengthen research and development of new technologies linked 
to the green transition. Two upscaled measures establishing a research and innovation funding 
programme on green transition measure, as well as promoting thematic research on enterprises for 
energy production, storage, transmission and distribution solutions shall expand public investment 
for the green transition and contribute to upgrading and modernising the electricity grid, including 
energy storage facilities, in line with the country-specific recommendation 4 of 2023. Furthermore, 
Cyprus  is  advancing  in  the  RES  deployment  recommendation  (2022,  2023  CSR  4)  through 
measures  promoting  renewables  in  dwellings,  measures  encouraging  the  use  of  renewables  by 

13 

 
 
 
 
 
  
  
  
 
 
 
public authorities and facilitating the transition of local communities towards climate mitigation 
and  adaptation,  and  in  addition  through  the  introduction  of  the  regulatory  framework  for  the 
operation of Energy Communities. The above-mentioned measures also contribute to reducing the 
reliance on fossil fuel through the diversification of the energy supply. The recommendation on 
the  shift  to  sustainable  transport  is  aimed  to  be  followed  by  the  measure  on  the  promotion  of 
widespread use of Electric Vehicles, and the establishment of the regulatory framework for the 
connection of EV charging points to the distribution network (2022, 2023 CSR 4.6).  

The REPowerEU chapter  further aims to boost energy efficiency.  Cyprus is  extending and 
accelerating energy efficiency with the adoption of measures on energy efficiency of dwellings, 
local  and  public  authorities,  and  through  energy  upgrades  of  large  enterprises  and  the  existing 
housing stock (2022 CSR 4.5, 2023 CSR 4.4). Improving the energy performance of the former, 
including households with vulnerable electricity consumers, is expected to reduce energy poverty 
in Cyprus (2023 CSR 4.5). The recommendation concerning the investment and modernisation of 
the Cypriot electricity grid and enhancement of storage solutions is addressed by the measure on 
thematic  research  in  enterprises  for  energy  production,  storage,  transmission  and  distribution 
solutions (2023 CSR 4.2). 

Some  measures  on  circular  economy,  water  management  and  digitalisation  have  been 
modified, partially removed or removed, without significantly lowering the ambition of the 
Plan.  The  construction  of  Eastern  Nicosia’s  infrastructure  for  wastewater  treatment’s  effluent 
reuse and two Reuse and Repair Centres in addition to the distribution of composters in rural areas 
have been removed from the Plan due to the reduction of the allocation. The establishment of the 
Orounda  livestock  waste  and  animal-by-product  management  facilities  were  removed  under 
Article 21 due to unforeseen complexities and procurement delays. The investment on a submarine 
data cable to Greece (C4.1I3) has also been removed from the Plan due to the reduction of the 
allocation, also considering the private initiatives for other submarine cables that emerged since 
the adoption of the original Plan. The remaining measures in the modified Plan, however, continue 
to significantly address the country-specific recommendations regarding circular economy, waste 
management and frontloading investments into digitalisation (2019 CSR 4.2, 2020 CSR 3.5, 2020 
CSR 3.7). 

 ***  

to 

to 

contribute 

Taking into consideration the reforms and investments envisaged by Cyprus, its modified RRP is 
subset of 
expected 
challenges identified in  the  country-specific  recommendations,  or  challenges  in  other  relevant 
documents  officially  adopted  by  the  Commission  under  the  European  Semester.  The 
modified RRP represents an adequate response to the economic and social situation of Cyprus. 
This  would warrant a  rating  of  A  under  the  assessment  criterion  2.2  in  Annex  V toof the  RRF 
Regulation.  

effectively  addressing  all or  a 

significant 

14 

 
 
 
 
 
 
 
 
 
3.3.  Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European  Pillar  of  Social  Rights,  mitigating  the  impact  of  the  crisis,  and  social 
territorial cohesion and convergence  

***  
The nature and extent of the proposed modifications to Cypriot recovery and resilience plan do 
not have an impact on the previous assessment (Rating of A) of the plan’s impact on the growth 
potential, job creation, and economic, social and institutional resilience of the Member State, on 
contributing to the implementation of the European Pillar of Social Rights, including through the 
promotion of policies for children and youth, and on mitigating the economic and social impact of 
the  COVID-19  crisis,  thereby  enhancing  the  economic,  social  and  territorial  cohesion  and 
convergence within the Union.   

3.4. The principle of ‘do no significant harm’  

The modified Cypriot recovery and resilience plan including the REPowerEU chapter is expected 
to continue to ensure that no measure included in the plan does significant harm to environmental 
objectives, within the meaning of Article 17 of the Taxonomy Regulation.  
The  modified  plan  assesses  compliance  with  the  ‘do  no  significant  harm’  (DNSH)  principle 
following the methodology set out in the Commission’s technical guidance on the application of 
‘do no significant harm’ under the Recovery and Resilience Facility Regulation (2021/C58/01). 
The assessment is done systematically for each modified reform and investment following the two-
step approach. The assessment concludes that for all modified measures, there is either no risk of 
significant  harm  or,  where  a  risk  is  identified,  a  more  detailed  assessment  is  performed 
demonstrating the absence of significant harm.  

As  regards  the  REPowerEU  measures,  the  DNSH  self-assessments  for  the  different  energy 
efficiency  measures  make  clear  that  construction/renovation  work  and  equipment  replacement 
foreseen  do  not  concern  buildings  located  in  or  near  biodiversity-sensitive  areas,  that  in  case 
biomass  would  be  used  it  would  be  of  local  origin,  consist  of  processed  wood  residues  and 
correspond to the sustainability criteria from RED II Directive (2018/2001/EU), and that at least 
70%  (by  weight)  of  the  non-hazardous  construction  and  demolition  waste  generated  on  the 
construction  site  will  be  prepared  for  re-use,  recycling  and  other  material  recovery,  including 
backfilling  operations  using  waste  to  substitute  other  materials,  in  accordance  with  the  waste 
hierarchy and the EU Construction and Demolition Waste Management Protocol. Also, measures 
will be taken to reduce noise, dust and pollutant emissions during construction/renovation works. 
The measures (e.g. on electric vehicles, research and innovation in the field of green transition) 
are  largely  unproblematic  from  the  point  of  view  of  the  DNSH  principle,  and  none  requires  a 
DNSH derogation. 

Where needed, the requirements of the DNSH assessment are enshrined in the design of a measure 
and specified in a milestone or target of this measure. This ensures that any disbursement for the 
respective measures can only be made once compliance with the DNSH principle is ensured. For 
instance, for some measures where calls for projects or calls for interest are necessary to select 
specific  projects,  such  as  security  investment  support  to  companies,  the  DNSH  principle  is 
complied with by ensuring that the terms of reference and other documentation prevent activities 

15 

 
 
 
 
 
 
 
that  could  do  significant  harm  to  environmental  objectives  from  being  selected.  This  is  also 
integrated in the milestones of the measure.  

***    

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  no  measure  for  the 
implementation of reforms and investments projects included in Cyprus’ modified recovery and 
resilience  plan,  including  its REPowerEU chapter,  is  expected  to  do  a  significant  harm  to 
environmental objectives within the meaning of Article 17 of Regulation (EU) No 2020/852 (the 
principle  of  ‘do  no  significant  harm’).  This  would warrant a  rating  of  A  under  the  assessment 
criterion 2.4 of Annex V toof the RRF Regulation.   

3.5. Green transition 

All the measures in the REPowerEU chapter are expected to significantly contribute to the green 
transition, including biodiversity, or to addressing the challenges resulting therefrom, as well as to 
the achievement of the Union 2030 climate targets and of EU climate neutrality by 2050.   

Under the REPowerEU chapter, two reforms are added which should significantly contribute to 
the green transition by enabling the uptake of renewable energy projects in the country, facilitating 
the rollout of electric vehicles and enabling final consumers to actively participate in the electricity 
market.  One  new  investment  and  three  upscaled  investments  should  significantly  contribute  to 
reduced primary energy consumption and increased energy savings in many public and private 
buildings  and  enterprises.  One  upscaled  investment  should  incentivise  the  enterprises  and 
individuals  to  shift  to  zero-emission  vehicles  and  thus  reduce  consumption  of  fossil  fuels  for 
transports, and two investments (upscaled and new) in the field of R&I will increase the number 
of enterprises engaged in green transition R&I activities and incentivise  targeted R&I activities 
aiming to provide solutions to bottlenecks identified in energy production, storage, transmission 
and distribution that will enhance the national grid’s infrastructure functionality and efficiency, 
accelerate RES integration and significantly reduce the country’s energy needs.  

All the new or modified measures are expected to have a long-term impact.   

Climate target  

On  the  basis  of  the  assessment  guidelines  provided  for  sub-criterion  5b,  the  measures  in  the 
modified RRP (including the REPowerEU chapter) supporting climate change objectives account 
for 45% of the plan’s maximum financial contribution (i.e. above the 37% required), based on the 
methodology for climate tracking set out in Annex VI to the RRF Regulation. Components 2.1 
(Climate  Neutrality,  Energy  Efficiency  and  Renewable  Energy:  notably  energy  efficiency 
measures, smart metering infrastructure, and forests fire protection), 2.2 (Sustainable Transport: 
Sustainable  Urban  Mobility  Projects  and  promotion  of  Electric  Vehicles),  and  2.3  (Smart  and 
Sustainable Water Management) make particularly important contributions to the climate target. 
Additionally, the proposed measures within the REPowerEU chapter supporting climate change 
objectives account for 95% of the chapter’s total estimated costs, based on the methodology for 
climate tracking set out in Annex VI to the RRF Regulation.  

***  

16 

 
 
 
 
 
 
 
 
 
 
 
Taking into consideration the assessment of all the measures envisaged, the modified recovery and 
resilience  plan,  including  its REPowerEU chapter,  is  expected, to  a  large  extent,  to  make a 
significant contribution to the green transition or to address the challenges resulting from it and 
ensures that at least 37% of its total allocation maximum financial contribution contribute to the 
climate  target.  At  least  37%  of  the  total  estimated  costs  of  the REPowerEU contribute  to  the 
climate  target.  This  would warrant a  rating  of  A  under  criterion  2.5  of  Annex  V toof the  RRF 
Regulation.  

3.6. Digital transition 

The modified recovery and resilience plan entails modifications to the cost of two measures related 
to  the  digital  transition  (Enhancement,  modernization  and  upgrade  of  Cyprus  State  Hospitals  - 
Digitalisation  in  Health  Care,  On-line,  cloud-based  platform  for  improving  the  trade  and 
information symmetry in the fresh produce supply chain) and two removals under Article 18 of 
the RRF Regulation (Rationalisation of the shift system through the implementation of a Roster 
Planning System,  submarine data cable to  Greece), and does not  include new measures (in the 
REPowerEU chapter) that contribute to the digital transition. Based on the methodology set out in 
Annex VII to the RRF Regulation, the contribution to digital objectives accounts for 24.6%of the 
modified plan’s maximum financial contribution (excluding the REPowerEU), an increase of 1.6 
percentage points due to a decrease of the financial contribution. The contribution to the digital 
transition continues to come from 12 components of the Plan, with 44 measures addressing digital 
priorities (out of a total of 135 for the whole Plan).  
***  
Taking into consideration the reforms and investments envisaged by Cyprus, its modified RRP is 
expected to contribute to the digital transition or to address the challenges resulting from it and 
in 
ensures 
the REPowerEU chapter) contribute to support digital objectives. This would warrant a rating of 
A under the assessment criterion 2.6 in Annex V toof the RRF Regulation.  

least  20% of its 

total  allocation 

the  measures 

(excluding 

that  at 

3.7. Lasting impact of the plan 

The modified recovery and resilience plan, under the REPowerEU chapter, includes new measures 
that,  in  addition  to  the  existing  measures,  are  expected  to  have  lasting  positive  effects  on  the 
Cypriot  economy  and  boost  its  green  transition.  The  REPowerEU  measures  are  expected  to 
contribute to the green transition by promoting the lasting use of renewables and energy efficiency 
measures in households, the public sector and companies, leading to a significant reduction of the 
primary energy consumption. Also, the reform on Regulating and facilitating the participation of 
Active Customers Renewable Self-consumers, Citizen Energy Communities, Renewable Energy 
Communities and Demand Response through Cumulative Representation in the electricity market 
will enable the lasting uptake of renewable energy projects in the country, thereby allowing a faster 
penetration of renewable energy in  the economy. The promotion  of  widespread use of Electric 
Vehicles  (EVs)  and  the  establishment  of  the  regulatory  framework  for  the  connection  of  EV 
recharging points to the distribution network will increase incentives to enterprises and individuals 
to shift to zero-emission vehicles. Finally, the thematic research investments which will provide 

17 

 
 
 
 
 
 
 
grants  for  targeted  research  and  innovation  linked  to  new  technologies  in  the  field  of  green 
transition and energy will accelerate RES integration and reduce the country’s energy needs.     

***  
The nature and extent of the proposed modifications to Cyprus’ recovery and resilience plan do 
not have an impact on the previous assessment (rating of A) of the lasting impact of the plan.   

3.8. Milestones, targets, monitoring and implementation 

The nature and extent of the proposed modifications to Cyprus’ recovery and resilience plan do 
not have an impact on the previous assessment of the effective monitoring and implementation of 
the recovery and resilience plan, as reflected in SWD (2021) 196 final.  

The milestones and targets of the modified Cypriot recovery and resilience plan enable an 
adequate monitoring of the plan’s implementation. Each of the new reforms and investments 
introduced under the new REPowerEU chapter includes at least one target and/or milestone that 
contains the key elements of the measure and allows for the assessment of the achievement of its 
objectives. This new chapter includes a set of fifteen new milestones and targets (reforms will be 
monitored  by  two  milestones,  investments  by  two  milestones  and  eleven  targets).  Cyprus’ 
modified plan still corresponds to the original plan in terms of the overall level of ambition. In 
addition, Cyprus has sufficiently described the relevant verification mechanisms, data collection 
systems  and  responsibilities  that  also  can  be  qualified  as  clear,  robust  and  effective  to  ensure 
effective completion of milestones and targets.   

***  
The arrangements proposed by Cyprus in its modified recovery and resilience plan are expected 
to be adequate to ensure effective monitoring and implementation of the recovery and resilience 
plan, including the envisaged timetable, milestones and targets, and the related indicators. This 
would warrant a rating of A under the assessment criterion 2.8 of Annex V to the RRF Regulation.  

3.9. Costing 

Cyprus has provided individual estimated costs for the new measures that entail a cost in the 
the REPowerEU chapter. For all the measures whose modifications entailed a change in the cost 
estimates  or  related  target,  Cyprus  has  also  provided  individual  justifications  including  on  the 
proportionality of the relevant amendments and new individual estimated costs when substantial 
modifications of a measure entailed a change in the assumptions underlying the cost estimates.    
The cost information provided by Cyprus is generally detailed and well substantiated. The 
costs  of  the  measures  are  outlined  in  the  standard  template  table.  Moreover,  Cyprus  provided 
detailed estimates and assumptions on costs using individual costing files, which were intended to 
provide  detailed  descriptions  of  the  methodology  underlying  the  costs  calculations  as  well  as 

18 

 
 
 
 
 
 
 
 
 
 
relevant evidence. Also, Cyprus submitted separate evidence when needed. The assessment of the 
cost estimates and inherent supporting documents shows that the majority of the costs of the new 
measures and of the existing measures whose modifications entailed a new cost assessment are 
well justified, reasonable, plausible and do not include costs covered by existing or planned EU 
financing  and  are  commensurate  to  the  expected  economic  and  social  impact  of  the  envisaged 
measures. Moreover, the changes in the costs estimates of the other modified measures are justified 
and proportional.   

Reasonable costs  

Overall,  the  assumptions  used  by  Cyprus  to  estimate  the  costs  of  the  new  measures  in  the 
REPowerEU  chapter  and  of  the  existing  measures  whose  modifications  entailed  a  new  cost 
assessment,  provide  a  reasonable  explanation  of  the  key  cost  drivers  of  the  measures.  The 
calculations are generally clearly spelled out allowing to identify the methodology used even if for 
a limited number of measures the information provided is more limited or less clear. Nevertheless, 
there is no evidence that would allow doubting the costing estimates provided.   

The new measures included in the Cypriot in the REPowerEU chapter and the existing measures 
whose modifications entailed a new cost assessment, comply with the eligibility criteria set out in 
the RRF Regulation. All costs are incurred for reforms and investments after February 2020 and 
after February 2022 for the measures in the REPowerEU chapter. Value-added tax (VAT) is not 
included  in  any  of  the  cost  estimates.  Some  of  the  new  measures  in  the  REPowerEU  chapter 
include  temporary  recurrent  costs  that  are  acceptable,  as  relevant  justifications  are  provided 
showing that these costs are temporary and in line with the objective of the measures.  

The  reasonability  of  the costs  of  the  other  modified  measures  has  not  changed  from  the  initial 
assessment of these measures, as the changes in the cost estimates for all of them are duly justified 
and proportional. In the case of measures being modified under Article 21(1) of Regulation (EU) 
2021/241 for cost-related reasons, sufficient information has been provided to justify the objective 
circumstances and the proportionality of the changes in the cost estimates or related target. In this 
context,  the  reasonability  of  the  cost  estimates,  taking  into  account  the  new  measures  in  the 
REPowerEU chapter, and the modified measures, has been established to a medium extent.   

Plausible costs   

The amount of the estimated costs of new measures in the REPowerEU chapter and the existing 
measures whose modifications entailed a new cost assessment is in line with the nature and type 
of the envisaged reforms and investments. For most of these measures, Cyprus provided supporting 
documents and links to online sources to substantiate the cost estimates, including explanations of 
how  past  projects  relate  to  the  cost  estimates  of  the  new  measures.  Nevertheless,  in  a  limited 
number of instances the comparability of past projects to the ones proposed in the plan could not 
fully be established, partially due to the novelty of the measure.  

The  plausibility  of  the  costs  of  the  other  modified  measures  has  not  changed  from  the  initial 
assessment of these measures, as the changes in the cost estimates for all of them are duly justified 

19 

 
 
 
 
 
 
 
 
 
 
 
 
and proportional. Sufficient information has been provided to justify the objective circumstances 
and the proportionality of the changes in the cost estimates or related target.  

Considering the limitations of an ex-ante assessment of cost estimates, the amounts proposed for 
financing were deemed appropriate and seen as establishing the plausibility of the cost estimates 
to a medium extent.  

No double funding  

Cyprus has indicated for each individual new measure in the REPowerEU chapter and the existing 
measures whose modifications entailed a new cost assessment that the costs to be financed by the 
RRF will not be funded at the same time by other Union funding sources. Furthermore, the set-up 
to prevent, detect and correct double funding has not been altered by the modification of the plan.    

Commensurate and cost-efficient costs  

The  total  cost  of  the  modified  Cypriot  recovery  and  resilience  plan  is  commensurate  to  the 
expected  social  and  economic  impact  of  the  envisaged  measures.  A  large  part  of  the  measures 
included in the Cypriot plan addresses CSRs and the overall size of the Cypriot plan of around 5% 
of GDP would make a significant contribution to the recovery of the Cypriot economy. The full 
implementation of the plan could have a significant impact on both GDP and employment in both 
the short and long term, initially driven by investment and then driven increasingly by productivity 
gains induced by reforms. Thus, the envisaged social and economic gains that would flow from 
the plan seem commensurate with the measures envisaged and would be in line with the principle 
of cost-efficiency.  

***  

The justification provided by Cyprus on the amount of the estimated total costs of the modified 
recovery and resilience plan is to a medium extent reasonable, plausible, in line with the principle 
of  cost-efficiency  and  is  commensurate  to  the  expected  national  economic  and  social  impact. 
Cyprus provided sufficient information and evidence that the amount of the estimated cost of the 
reforms  and investments  of  the modified recovery and resilience plan  to be financed under the 
Facility is not covered by existing or planned Union financing. This would warrant a rating of B 
under the assessment criterion 2.9 of Annex V to the RRF Regulation.  

3.10. Controls and audit  

The  original  assessment  of  the  robustness  and  adequacy  of  the  control  system  and  other 
arrangements included in the Cypriot RRP had concluded that these arrangements are adequate 
subject to the timely fulfilment of one milestone pertaining to the repository system for monitoring 
the implementation of the RRF. This warranted a rating of A under the assessment criterion 2.10 
of Annex V to the RRF Regulation. 

The Cypriot authorities have confirmed that the internal control system, as well as arrangements 
for the prevention, detection and correction of fraud, corruption, conflict of interest and double 
funding  as  previously  assessed  remain  in  place.  In  addition,  certain  additional  assurances  have 
been provided as per agreed milestones included in the annex to the original Council Implementing 

20 

 
 
 
 
 
 
 
 
 
 
Decision – namely  a repository system for monitoring the implementation of the RRF to be in 
place and operational. The system had to include, as a minimum, the  following functionalities: (a) 
collection of data and monitoring of the achievement of milestones and targets; (b) collect, store 
and ensure access to the data required by Article 22(2)(d)(i) to (iii) of the RRF Regulation.  The 
adequacy of these measures has been assessed by the Commission during the first payment request. 

The modifications to the original plan and the introduction of the REPowerEU chapter as such do 
not affect the original assessment. However, in the context of the modification of the Cypriot RRP, 
its audit and control system needs to be reassessed on the basis of criteria 2.10 of Annex V of the 
RRF Regulation. Since the original assessment, the Commission has had access to information on 
its actual implementation. This includes the findings of the audit on the protection of the financial 
interests of the Union performed by the Commission in Cyprus. 

In  light  of  this  information,  the  Commission  considers  that  the  internal  control  system  of  the 
Cypriot RRP is overall adequate, but it has some deficiencies that must be addressed. These relate 
to a weakness in the existing control mechanisms. In this context, one audit and control milestone 
has been introduced to remedy the weaknesses.  

Robustness of internal control system and distribution of roles and responsibilities 

The previous assessment concluding on the adequacy of the arrangements as regards the roles and 
responsibilities of the actors for control and audit, segregation of functions and independence of 
actors performing audits remains valid. The plan comprehensively outlines the responsibilities and 
roles  of  key  actors  in  controls,  audits,  and  fraud  prevention,  including  specialized  bodies  and 
coordinators, ensuring transparency and adherence to both national and EU legislation. Control 
mechanisms  are  meticulously  described,  with  detailed  verification  processes  and  clear  lines  of 
responsibility for all involved entities. The plan emphasizes the independence of audit services 
and  introduces  multiple  layers  of  controls  to  prevent  irregularities  and  double  funding,  with 
provisions for correction measures and recovery in case of identified issues. Adequate staffing, 
training,  and  monitoring  systems  are  outlined  to  ensure  the  effective  implementation  of  these 
measures. 

Adequacy of control systems and other relevant arrangements 

The control system and other arrangements to prevent, detect and correct fraud, corruption and 
conflicts of interest when using funds provided by RRF continue to appear overall adequate. The 
implementation of a repository system for monitoring and control of the measures, as well as for 
collection of data in line with the requirements of Article 22(2), point (d), indents (i) to (iii) of the 

21 

 
 
 
 
 
 
 
 
 
 
RRF  Regulation  is  confirmed.  Nevertheless,  certain  shortcomings  were  identified  by  the 
Commission  services  in  the  context  of  its  audit  work  with  regard  to  lack  of  appropriate  PFIU 
measures  at  Implementing  Bodies  level  and  a  lack  of  clear  delimitation  between  control  and 
implementation duties. Hence, a milestone on audit and control has been introduced in order to 
remedy these weaknesses. This  milestone requires  to  issue and circulate  mandatory guidelines, 
formulated by the Coordinating Authority, to all Implementing Bodies, addressing critical areas 
including  risk assessment for all verification types, double funding verifications and avoidance 
procedures, handling irregularities and whistleblowing for Union-funded interventions, audit trail 
requirements  ,  a  comprehensive  fraud  risk  assessment  for  all  contracting  authorities,  and 
establishing specific functions within PFIU to address fraud, corruption, and conflicts of interest, 
all while ensuring clear role demarcation and proper alignment of controls with these guidelines. 

Adequacy of arrangements to avoid double EU funding  

The  previously  assessed  arrangements  as  regards  the  prevention,  detection  and  correction  of 
double funding remain in place as initially assessed by the Commission.  

Legal empowerment and administrative capacity of control function 

The  previously  assessed  arrangements  conducted  by  the  Commission  remain  intact, 
reaffirming the stability and reliability of the established structures and processes.  

The Royal Decree 36/2020 sets up the national structure for the implementation of the Plan, 
establishing the duties of every entity involved. Moreover, the plan describes clearly the role 
and  structure  of  the  control.  The  established  legal  frameworks  have  distinctly  defined  the 
responsibilities  and  mandates  of  the  bodies  entrusted  with  audit  and  control  duties.  The 
introduced milestone contains requirements for guidelines for verifications further defining 
the responsibilities and mandates of these bodies as provided for in milestone 278, forming 
part  of  the  second  payment  request.  The  legal  mandates  of  the  involved  entities  are 
meticulously articulated, ensuring clarity and transparency. Furthermore, the adoption and 
enforcement of monitoring and implementation procedures, as described initially in the plan, 
were solidified by the Council of Ministers' decision on 14 May 2021. This decision not only 
endorsed the plan but also unequivocally assigned responsibilities to the respective bodies. 

***  

The arrangements proposed by France in its modified RRP are expected to be adequate 
to ensure effective monitoring and implementation of the RRP, including the envisaged 

22 

 
 
 
 
 
 
 
 
 
 
 
timetable,  milestones  and  targets,  and  the  related  indicators.  This  would  warrant  a 
rating of A under the assessment criterion 2.8 of Annex V to the RRF Regulation. 

3.11. Coherence 

The modifications to the RRP display coherence within each component and show thematic 
interlinkages and synergies between the different components, in particular those related to 
the newly added REPowerEU chapter.   

The measures in the REPowerEU chapter improved the coherence of the RRP by reinforcing the 
original measures on energy efficiency measures, electric vehicles, and research and innovation 
on  green  transition.  The  new  reform  on  the  introduction  of  a  regulatory  framework  for  the 
connection of EV recharging points to the distribution network is closely linked to the existing and 
upscaled investment on promoting widespread use of electric vehicles, and the new reform on the 
introduction of a regulatory framework for the operation of Energy Communities is closely linked 
to measures encouraging the use of renewables in dwellings.  

The modified recovery and resilience plan includes measures that are complementary with one 
another. This concerns the components related to green transition, sustainable transport and the 
new REPowerEU chapter. The modifications do not have contradictory aims or possible negative 
effects on one another.   

In  order  to  promote  wider  coherence  across  instruments,  notably  with  the  European  cohesion 
policy funds, a balanced territorial allocation of resources is encouraged. 

***  
 The nature and extent of the proposed modifications to Cyprus’ recovery and resilience plan do 
not have a material impact on the previous assessment (rating of A) of the coherence of the actions 
proposed by Cyprus. 

3.12. REPowerEU 

The  REPowerEU  chapter  measures  will  directly  contribute  to  an  increase  in  the  uptake  of 
renewables and in energy efficiency in different buildings and enterprises, through the new reform 
on Regulating and facilitating the participation of Active Customers Renewable Self-consumers, 
Citizen Energy Communities, Renewable Energy Communities and Demand Response through 
Cumulative  Representation  in  the  electricity  market,  the  new  and  scaled-up  measures  on 
investments promoting renewables and individual energy efficiency measures both in the private 
and  the  public  sector.  Also,  the  investment  scaling  up  the  measure  on  the  scheme  for  the 
enhancement of large enterprises competitiveness in the manufacturing sector shall increase the 
number  of  large  enterprises  supported,  in  all  economic  sectors,  to  improve  their  energy 
performance, via energy efficiency measures or installation of photovoltaic systems. Also, both 

23 

 
 
 
 
 
 
 
 
 
 
 
 
  
measures in the field of thematic research will increase the number of enterprises engaged in green 
transition R&I activities, with a particular focus on solutions to bottlenecks identified in energy 
production,  storage,  transmission  and  distribution  that  will  enhance  the  national  grid’s 
infrastructure functionality and efficiency, accelerate RES integration and significantly reduce the 
country’s  energy  needs.  Additionally,  the  reform  and  the  upscaled  investment  in  the  field  of 
electric  vehicles  shall  increase  the  number  of  electric  vehicles  purchased,  leading  to  increased 
incentives  to  enterprises  and  individuals  to  shift  to  zero-emission  vehicles  and  thus  reduce 
consumption of fossil fuels for transports. Ultimately, all these measures will thus contribute to 
energy security and to the diversification of the Union’s energy supply. 

All  the  energy  efficiency  measures,  the  upscaled  scheme  for  the  enhancement  of  their 
competitiveness  and  the  energy  upgrade  of  large  enterprises  in  Cyprus  and  the  reform  on 
Regulating  and  facilitating  the  participation  of  Active  Customers  Renewable  Self-consumers, 
Citizen Energy Communities, Renewable Energy Communities and Demand Response through 
Cumulative  Representation  in  the  electricity  market  will  directly  contribute  to  the  second 
REPowerEU  objective  of  boosting  energy  efficiency  in  buildings,  decarbonising  industry,  and 
increasing the share of renewable energy. Notably, several of the renovation programmes shall 
lead to a 30% reduction in the Primary Energy Demand of the buildings renovated. The measures 
in  the  field  of  electric  vehicles  and  the  new  investment  on  thematic  research  in  enterprises  for 
energy  production,  storage,  transmission  and  distribution  solutions  will  contribute  to  the  third 
REPowerEU  objective  of  addressing  internal  and  cross-border  energy  transmission  bottlenecks 
and  supporting  zero-emission  transport  and  its  infrastructure,  including  railways.  Notably,  the 
reform on the introduction of a regulatory framework for the connection of EV recharging points 
to the distribution network and the investment scaling up the measure on promoting widespread 
use  of  Electric  Vehicles  will  facilitate  the  rollout  of  electric  vehicles,  leading  to  increased 
incentives  to  enterprises  and  individuals  to  shift  to  zero-emission  vehicles  and  thus  reduce 
consumption of fossil fuels for transports. The thematic research investment mentioned above will 
focus on grants for targeted R&I activities aiming to provide solutions to bottlenecks identified in 
energy  production,  storage,  transmission  and  distribution  that  will  enhance  the  national  grid’s 
infrastructure functionality and efficiency, accelerate RES integration and significantly reduce the 
country’s energy needs. Finally, the upscaled investment on a thematic research and innovation 
funding  program  on  green  transition  will  contribute  to  the  fourth  REPowerEU  objective  on 
supporting the objectives above through an accelerated requalification of the workforce towards 
green skills, as well as support of the value chains in key materials and technologies linked to the 
green  transition.  One  of  the  REPowerEU  measures  is  also  directly  focused  on  energy  poverty, 
which  is  the  upscaled  investment  on  promoting  renewables  and  individual  energy  efficiency 
measures in dwellings and tackling energy poverty. It aims to increase the number of dwellings, 
including  households  of  vulnerable  electricity  consumers,  with  improved  energy  performance, 
thus increasing energy savings and further tackling energy poverty. 

As explained in section 3.7., the REPowerEU measures are expected to contribute to the green 
transition  by  promoting  the  lasting  use  of  renewables  and  energy  efficiency  measures  in 

24 

 
 
 
 
 
 
 
households,  the  public  sector  and  companies,  leading  to  a  significant  reduction  of  the  primary 
energy consumption. Also, the reform on Regulating and facilitating the participation of Active 
Customers  Renewable  Self-consumers,  Citizen  Energy  Communities,  Renewable  Energy 
Communities and Demand Response through Cumulative Representation in the electricity market 
will enable the lasting uptake of renewable energy projects in the country, thereby allowing a faster 
penetration of renewable energy in  the economy.  The promotion of widespread use of Electric 
Vehicles  (EVs)  and  the  establishment  of  the  regulatory  framework  for  the  connection  of  EV 
recharging points to the distribution network will increase incentives to enterprises and individuals 
to  shift  to  zero-emission  vehicles.  Notably,  the  reform  on  the  introduction  of  a  regulatory 
framework for the connection of EV recharging points to the distribution network and the upscaled 
investment  on  promoting  widespread  use  of  EV  should  facilitate  the  rollout  of  electric  vehicles, 
leading to increased incentives to enterprises and individuals to shift to zero-emission vehicles and 
thus reduce consumption of fossil fuels for transports. The thematic research investment mentioned 
above  will  focus  on  incentives  for  targeted  R&I  activities  aiming  to  provide  solutions  to  bottlenecks 
identified  in  energy  production,  storage,  transmission  and  distribution  that  will  enhance  the  national 
grid’s infrastructure functionality and efficiency, accelerate RES integration and significantly reduce the 
country’s energy needs. Finally, the thematic research investments which will provide incentives for 
targeted research and innovation linked to new technologies in the field of green transition and 
energy will accelerate RES integration and reduce the country’s energy needs.     

All the above measures are expected to contribute to the REPowerEU objectives in coherence and 
complementarity with a number of other reforms and investments promoted under the RRP, mainly 
under  Components  2.1  and  2.2,  as  well  as  under  other  national  initiatives  or  EU  funded 
programmes such as programmes co-funded by the Cohesion Policy and the Just Transition Funds 
(e.g. incentives for energy/storage of renewable energy systems).  

Finally, it must be noted that key public stakeholders have been consulted  on the REPowerEU 
chapter which generally proved consensual. 

***  
Taking  into  consideration  the  assessment  of  all  the  measures  envisaged  in  the  REPowerEU 
chapter, the chapter is expected, to a large extent, to contribute effectively to energy security, the 
diversification of the Union’s energy supply, an increase in the uptake of renewables and energy 
efficient, an increase of energy storage capacities or the necessary reduction of dependence on 
fossil fuels before 2030. This would warrant a rating of A under criterion 2.12 of Annex V to the 
RRF Regulation.  

3.13. Cross-border or multi-country dimension or effect  

Though no measures of direct multi-country dimension, in terms of cooperation and/or scope,  are 
included in this chapter, it is considered that most of the measures do have a cross-border effect 
since they contribute to  the reduction of the demand and dependency on  fossil fuels,  either by 
electrification, by promoting the production and integration of renewable energy sources into the 
network or through supporting energy efficiency and saving, hence reducing the country’s energy 

25 

 
 
 
 
 
 
 
  
 
needs. This reduced dependence on fossil fuels  should also be reflected in Cyprus’ cross-border 
energy flows. Therefore the measures can be considered as having a positive cross-border effect as 
established in the Commission’s guidance in the context of REPowerEU5.  

***  
Taking  into  consideration  the  assessment  of  all  the  measures  envisaged  in  the  REPowerEU 
chapter, the measures in the chapter are expected, to a large extent, to have a cross-border of 
multi-country dimension or effect. This would warrant a rating of A under criterion 2.13 of Annex 
V to the RRF Regulation.  

REPowerEU measure  

Promoting renewables and individual energy 
efficiency measures in dwellings and tackling energy 
poverty in households with vulnerable electricity 
consumers 
Encouraging the use of renewables and energy 
savings by local/wider public authorities and 
facilitating the transition of local communities 
towards climate mitigation & adaptation 
Promote widespread use of Electric Vehicles (EVs) - 
new electric cars + PS vehicles (ZEV) 

Scheme for the enhancement of their competitiveness 
and/or the energy upgrade of large enterprises in 
Cyprus 
Promoting extensive energy upgrading of housing 
stock 

Introduction of regulatory framework for the operation 
of Energy Communities 

Introduction  of 
the 
connection of EV recharging points to the distribution 
network 

framework 

regulatory 

for 

Costs 
million)  

(EUR 

Contribution 
target in %  

 35.43 

to 

the 

  33.88% 

 11 

  10.52% 

 8 

10 

30 

0.09 

0.06 

 7.65% 

9.56% 

28.69% 

0.086% 

0.057% 

TOTAL: 

94.58 

90.44% 

26 

 
 
 
 
 
  
  
  
 
 
ANNEX I: Climate tracking and digital tagging2 

Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C1.1R1.1  

C1.1R2  

C1.1I1.1  

C1.1I2  

C1.1I5.1  

C1.1I5.2  

C1.1I5.3  

C1.1I6  

National Centre for Clinical 
Evidence and Quality 
Improvement - Digital 
platform  
Design of an Electronic 
platform for the surveillance 
of Nosocomial Antibiotic 
Consumption and 
Healthcare – Associated 
Infections  
New facilities for the Cyprus 
Blood Establishment and 
procurement of the latest 
technology attendant 
equipment - Construction of 
new buildings  
Cyprus Innovative Public 
Health information and 
communications technology 
(ICT) System  
Enhancement, 
modernization and upgrade 
of Cyprus State Hospitals - 
Construction of new 
buildings [Haemodyalisis 
unit at Paphos Hospital, new 
building of Makarios 
Hospital for children and 
new Mental Health 
Hospital]  
Enhancement, 
modernization and upgrade 
of Cyprus State Hospitals - 
Energy efficient renovation  
Enhancement, 
modernization and upgrade 
of Cyprus State Hospitals - 
Digitalisation in Health Care  
Deployment of generic cross 
border e-health services in 
Cyprus  

1  

0.4  

 095  

100%  

 095  

100.00%  

3.52  

 025ter  

40.00%  

5.7  

 095  

100.00%  

23.46  

 025ter  

40.00%  

21.39  

 026  

40%  

1.6  

1.94  

 095  

100.00%  

 013  

100.00%  

2 While the estimated cost of Cyprus’s recovery and resilience plan exceeds the total allocation of non-repayable financial support to Cyprus, 
Cyprus will ensure that all spending related to the measures mentioned in this table as contributing to climate objectives are fully financed by the 
funds from the Recovery and Resilience Facility. 

27 

 
 
 
 
 
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
 
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C1.1I7  

C2.1R2  

C2.1R3  

C2.1R4  

C2.1I1  

C2.1I2  

C2.1I3  

C2.1I4  

C2.1I5.1  

C2.1I5.2  

C2.1I6  

C2.1I7  

Public warning system for 
supporting emergency 
operations through SMS  
Independence of Cyprus 
Transmission System 
Operator (TSOC) from the 
incumbent Electricity 
Authority of Cyprus  
Digital One-Stop Shops to 
streamline RES projects 
permitting and to facilitate 
Energy Renovation in 
Buildings  
Energy Storage Regulatory 
Framework  
Promoting energy efficiency 
investments in SMEs and 
non-profit organisations  
Promoting renewables and 
individual energy efficiency 
measures in dwellings and 
tackling energy poverty, 
including in households with 
vulnerable electricity 
consumers  
Encouraging the use of 
renewables and energy 
savings by local/wider public 
authorities and facilitating 
the transition of local 
communities towards 
climate mitigation & 
adaptation  
Encourage the reduction of 
CO2 emissions 
in  businesses  
Energy Efficiency Upgrading 
of public buildings - Schools 
& Fire Service  
Energy Efficiency Upgrading 
of public buildings - Nicosia 
Hospital & Water  
Upgrading renewable 
energy and smart grids 
testing infrastructure at the 
University of Cyprus  
Mass installation and 
operation by the 

4.5  

0  

0.5  

0  

40  

20.5  

12.5  

5.3  

8.35  

3.1  

1.59  

35  

100.00%  

 055  

100.00%  

 033  

 011bis  

40.00%  

 011bis  

100.00%  

 033  

 024ter  

100.00%  

 025bis  

100.00%  

 026bis  

100.00%  

 027  

100.00%  

 026bis  

100.00%  

 029  

100.00%  

 033  

100.00%  

40.00%  

 033  

100.00%  

 033  

40.00%  

28 

 
 
 
 
 
   
  
   
  
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

Distribution System 
Operator (DSO) of Smart 
Metering Infrastructure 
(Advanced Metering 
Infrastructure)  
Monitoring and reduction of 
GHG emissions in 
agriculture  
Forests fire protection  
Market Management 
System to facilitate the 
opening of the electricity 
market to competition  
Ending energy isolation - 
Project of Common Interest 
"EuroAsia Interconnector"  
Establishment of an 
Intelligent Transport System 
using Digital Twin 
technologies  
Provide the regulatory 
framework for an 
interoperable and effective 
electric vehicle (EV) 
recharging infrastructure 
and an efficient EV 
recharging market  
Progressively phase out the 
most polluting vehicles, 
especially in polluted urban 
areas  
Implementation of 
Sustainable Urban Mobility 
Projects (SUMP) and 
accessibility enhancing 
measures - SUMP / Cycling 
Infrastructure & accessibility 
enhancing measures  
Creation of electro-mobility 
infrastructure  
Promote widespread use of 
Electric Vehicles (EVs) - new 
electric cars + PS vehicles 
(ZEV)  
Promote widespread use of 
Electric Vehicles (EVs) - new 
electric cars + PS vehicles 
(ZEV)  

C2.1I8  

C2.1I9  

C2.1I10  

C2.1I11  

C2.2R1  

C2.2R2  

C2.2R3  

C2.2I1.1  

C2.2I2  

C2.2I3.1  

C2.2I3.2  

4.13  

 022  

100.00%  

25.7  

 036  

100.00%  

4.7  

 033  

100.00%  

 033  

40.00%  

100  

 033  

100.00%  

4  

 076bis  

40.00%  

 076bis  

100.00%  

0.2  

 073  

100%  

0  

 074  

14.5  

 075  

100%  

6.79  

 073  

100%  

32.99  

 074  

100%  

15  

 ADHOC  

40%  

29 

 
 
 
 
 
   
  
   
  
   
  
   
  
  
   
  
   
  
   
  
   
  
   
  
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C2.3R1  

C2.3I1  

C2.3I2  

C2.3I3  

C2.3I4.1  

C2.3I4.2  

C2.3I4.3  

C2.3I4.5  

C2.3I5  

C2.3I6  

C2.3I8  

C3.1R2  

C3.1R3.1  

C3.1R4  

C3.1I1  

C3.1I2  

11.76  

0.33  

0.25  

0.95  

5.96  

6.02  

0.74  

Water Resource 
Management Reform  
Choirokitia‐Famagusta 
Conveyor Replacement  
Water Treatment Plants: 
upgrade for water quality 
improvement  
Integrated Monitoring and 
Control Management 
System for the Water 
Development Department’s 
infrastructure  
Smart Water and Sewerage 
Networks Management - 
Larnaca Sewerage (digital)  
Smart Water and Sewerage 
Networks Management - 
Larnaca Sewerage (solar)  
Smart Water and Sewerage 
Networks Management - 
Larnaca Sewerage (energy 
efficiency)  
Smart Water and Sewerage 
Networks Management - 
Larnaca & Limassol 
Waterboard / water 
management  
Anti-flood and water 
collection measures  
Enhance water security for 
Nicosia and Larnaca regions  6.04  
Protection of the marine 
ecosystem from hazards 
through oil spills  
On-line platform for 
improving the trade and 
information symmetry in the 
fresh produce supply chain  
Genetic improvement of the 
Cyprus sheep and goat 
population - Digital  
Enhancement of circular 
economy in the Industry  
Marine aquaculture 
construction  
Enhancement of isotopic 
database of traditional 
Cypriot products  

7.60  

0.2  

17  

16  

15  

25  

0  

1  

 040  

 040  

40%  

40%  

 040  

40%  

 040  

40%  

 055  

100%  

 010ter  

100%  

 010ter  

100%  

 029  

100%  

 024  

100%  

 040  

100%  

 055  

100%  

100%  

100%  

 035  

 037  

 038  

 047  

40%  

 081bis  

40%  

30 

 011  

100%  

 011  

100%  

 011  

100%  

 
 
 
 
 
   
  
   
  
  
  
   
  
   
  
   
  
   
  
  
   
  
   
  
   
  
   
  
   
  
   
  
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C3.1I7  

C3.1I9  

C3.1I10.1  

C3.1I11  

C3.1I12  

C3.2I2.1  

C3.2I3  

C3.3I1  

C3.3I2  

C3.3I4  

C3.4R4.1  

C3.4R5  

C3.4R7.1  

7  

10  

3.3  

1.8  

1.4  

Scheme for the 
enhancement of their 
competitiveness and the 
energy upgrade of large 
enterprises in Cyprus  
Promotion of circular 
economy in hotel 
establishments  
Enrichment of the tourism 
product in rural, 
mountainous and remote 
areas - Natural heritage  
Improvement and extension 
of the Cyprus Green Points 
Network and creation of a 
network of Collection Points 
and Recycling Corners  
Waste management towards 
circular economy  
Innovation Funding 
Programs & Funding 
schemes for the 
enhancement of growth & 
competitiveness of start-
ups, innovative companies 
and SMEs - Green transition  
R&I funding program on 
green transition  
Integrated Information 
system for the Department 
of Registrar of Companies 
and Intellectual Property  
Creation of a Regulatory 
Sandbox to enable FinTech   0.4  
Scheme for the digital 
10  
upgrade of enterprises  
Strengthen administrative 
capacity and transparency 
through the 
professionalisation of public 
procurement and further 
digitalisation of its process - 
Digital  
Enhancement of the 
capacity of the Law Office   1.03  
Urban land consolidation - 
0.12  
Digital  

6.58  

2  

6  

4  

 024bis  

0%  

 047  

40%  

 050  

40%  

 047  

40%  

 042  

40%  

 022  

100%  

 022  

100%  

31 

 011  

100%  

 021ter  

100%  

 010  

100%  

 011  

100%  

 011  

 011  

100%  

100%  

 
 
 
 
 
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C3.4R9  

C3.4I2  

C3.4I4  

C3.4I5  

C3.4I6.1  

C3.5R6.1  

C3.5R9.1  

C3.5I1  

C3.5I2  

C4.1R1  

C4.1I1  

C4.1I2  

C4.2R1  

C4.2R2  

C4.2R3  

C4.2R4  

C4.2I1.1  

Digital transformation of 
courts  
Digitalisation of the law-
making process  
Enhancing e-system for 
issuing building permits  
Smart cities  
Regeneration and 
Revitalization of Nicosia 
Inner City - Renovation  
Reinforcing and 
strengthening the insolvency 
framework - Digital  
Improving tax collection and 
effectiveness of the Tax 
Department - Digital  
Enhancement of the 
Supervisory Function of the 
Cyprus Securities and 
Exchange Commission  
Modernisation of Customs 
and Electronic Payment 
System  
Empower the National 
Regulatory Authority 
(OCECPR)  
Expansion of Very High 
Capacity Networks in 
underserved areas  
Upgrade internet connection 
to be “Gigabit-ready” and 
promote connectivity take-
up  
Digital Services Factory  
Definition and 
implementation of a new 
cloud policy with regard to 
government IT systems and 
services  
Police Procedures 
digitalisation on Digipol  
Setting up the beneficial 
ownership registry  
Digitalisation in various 
central government 
ministries/services - system 
development, hardware  

10.89  

1.69  

1.12  

35  

10  

0.6  

16.43  

0.25  

10.58  

0.5  

35  

10  

4.7  

6  

8  

0.4  

13.1  

 011quater  

100%  

 011  

 011  

 055bis  

40%  

 055bis  

 025  

40%  

100%  

100%  

100%  

 011  

100%  

 011  

100%  

 011  

100%  

 011  

100%  

 011  

100%  

 053  

100%  

 053  

 011  

100%  

100%  

 011  

100%  

 011  

 011  

100%  

100%  

 011  

100%  

32 

 
 
 
 
 
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C4.2I2  

C5.1R2.1  

C5.1R4  

C5.1R5  

C5.1I2.1  

C5.1I2.2  

C5.2R1.1  

C5.2I1.1  

C6.1R1  

C6.1R2  

C6.1I1  

13.8  

3.28  

1.85  

2.58  

8.42  

7.25  

Digitalisation of the Cyprus 
Ports Authority  
A new teacher and school 
evaluation system - digital   0.3  
Digital transformation of 
school units with the aim of 
enhancing digital skills and 
skills related to STEM 
education  
E-skills Action Plan – 
Implementation of specific 
actions  
Skilling, reskilling and 
upskilling - green skills  
Skilling, reskilling and 
upskilling - digital skills  
Reform of the Social 
Insurance System and 
Restructuring of the Social 
Insurance Services - Digital  
Improving the effectiveness 
of the Department of Labour 
and Public Employment 
Services (PES) and 
reinforcing support for 
young people - Digital  
Regulating and facilitating 
the participation of Active 
Customers, Renewable Self-
Consumers, Citizen Energy 
Communities, Renewable 
Energy Communities and 
Demand Response through 
Cumulative Representation 
in the electricity market  
Establishment of the 
regulatory framework for 
the connection of EV 
recharging points to the 
distribution network  
Scaled-up measure: 
Promoting renewables and 
individual energy efficiency 
measures in dwellings and 
tackling energy poverty, 
including in households with 
vulnerable electricity 
consumers  

2.3  

0.09  

0.06  

35.43  

 011  

 011  

100%  

100%  

 012  

100%  

 108  

100%  

 108  

100%  

 011  

100%  

011   

100%  

 01  

100%  

 025  

 073  

100%  

025bis  

100%  

33 

 
 
 
 
 
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
  
  
   
  
   
  
  
  
Measure/ 
Sub-Measure 
Name ID  

Measure/Sub-Measure 
Name  

Budget 
(EUR m)  

Climate   

Digital *  

Int. Field   Coeff. %  

Int. Field  

Coeff. %  

C6.1I2  

C6.1I3  

C6.1I4  

C6.1I5  

C6.1I6  

C6.1I7  

8  

11  

Scaled-up measure: 
Encouraging the use of 
renewables and energy 
savings by local/wider public 
authorities  
Promoting extensive energy 
upgrading of housing stock   30  
Scaled-up measure: 
Promote widespread use of 
Electric Vehicles (EVs)  
Scaled-up measure: Scheme 
for the enhancement of the 
competitiveness and the 
energy efficiency of large 
enterprises in Cyprus  
Scaled-up measure: 
Thematic research and 
innovation funding program 
on green transition  
Thematic research in 
enterprises for energy 
production, storage, 
transmission and 
distribution solutions  

10  

4  

6  

026bis  

100%  

 025bis  

100%  

074  

100%  

024bis  

40%  

022  

100%  

 022  

100%  

*Reforms and investments in the REPowerEU chapter are not taken into account when calculating 
the plan’s contribution to the digital target requirement set by Regulation (EU) 2021/241.  

34