Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2021/0216 (NLE)**

**COVER NOTE**

**Brussels, 9 July 2021**
**(OR. en)**

**10679/21**
**ADD 1**

**ECOFIN 717**
**CADREFIN 368**
**UEM 206**
**FIN 589**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

date of receipt: 8 July 2021

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council
of the European Union

No. Cion doc.: COM(2021) 398 final

Subject: ANNEX to the Proposal for a Council Implementing Decision on the
approval of the assessment of the recovery and resilience plan for
Cyprus

Delegations will find attached document COM(2021) 398 final.

Encl.: COM(2021) 398 final

10679/21 ADD 1 FDC/sr

## ECOMP 1A EN

EUROPEAN

COMMISSION

**ANNEX**

_**to the**_

Brussels, 8.7.2021
COM(2021) 398 final

ANNEX

**Proposal for a Council Implementing Decision**

**on the approval of the assessment of the recovery and resilience plan for Cyprus**

{SWD(2021) 196 final}

# **EN EN**

**ANNEX**

**SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND**

**RESILIENCE PLAN**

**1.** **Description of Reforms and Investments**

**A.** **COMPONENT** **1.1:** **R** **ESILIENT AND EFFECTIVE HEALTH SYSTEM** **,** **ENHANCED CIVIL**

**PROTECTION**

This component of the Cypriot Recovery and Resilience plan addresses the challenge of
universal access to high-quality healthcare in Cyprus as well as civil protection’s overall
emergency preparedness and response. The objective of this component is to strengthen the
effectiveness, accessibility and overall resilience of the healthcare sector supporting the
recently introduced National Health System through various interventions. These include the
(i) modernisation and digitalisation of health care infrastructure and equipment, (ii) steppingup of e-health services, (iii) accreditation of provided health care services and introduction of
evidence-based clinical protocols and quality monitoring systems, as well as (iv) upskilling
opportunities for health workers. It further aims at enhancing Cyprus’ civil protection system
by establishing a modern Public Warning System.

The component addresses the country-specific recommendations on health (country-specific
recommendation 1 of 2020 and country-specific recommendation 3 of 2019).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**A.1. Description of the reforms and investments for non** **repayable financial support**

Reform 1 (C1.1R1): National Centre for Clinical Evidence and Quality Improvement

The objective of the reform is to enhance the quality and sustainability of the healthcare
system.

For this purpose, a National Centre for Clinical Evidence and Quality Improvement shall be
established developing evidence-based medicine (EBM) clinical guidelines, protocols and
pathways for all levels of care (primary, secondary and tertiary healthcare) in close
cooperation with healthcare professionals and patients as well as monitoring and evaluation
processes such as clinical audits, peer reviews and inspections. Furthermore, an IT system
enabling implementation and monitoring of the clinical standards and protocols and including
an e-learning platform shall be developed. The reform shall include the training of healthcare
professionals in the respective newly established protocols and processes.

The implementation of the reform shall be completed by 31 December 2025.

Reform 2 (C1.1R2): Design of an Electronic platform for the surveillance of Nosocomial
Antibiotic Consumption and Healthcare – Associated Infections

The aim of the reform is to support the digital transition of the healthcare sector and
strengthen the health system’s effectiveness and resilience.

1

It shall consist of the development of an electronic platform to process data from hospital
pharmacies (nosocomial antibiotic consumption), microbiology laboratories (antimicrobial
resistance), and hospitals (healthcare-associated infections (HAIs)).

The implementation of the reform shall be completed by 31 December 2025.

Investment 1 (C1.1I1): New facilities for the Cyprus Blood Establishment and procurement of
the latest technology attendant equipment

The objective of the investment is to enhance central Blood Establishment operations in
Cyprus.

This measure shall entail the construction of new facilities for the Cyprus Blood
Establishment and the procurement of the latest technology attendant equipment. About
80 000 blood products (such as red blood cells, platelets and fresh frozen plasma) shall be
able to be distributed for clinical use across the whole country.The new facilities shall have a
primary energy demand that is at least 20% lower than defined in the nearly zero-energy
building (NZEB) requirement.

The implementation of the investment shall be completed by 30 June 2025.

Investment 2 (C1.1I2): Cyprus Innovative Public Health information and communications
technology (ICT) System

The aim of the measure is to establish the Influenza Sentinel Surveillance module of the

Cyprus Innovative Public Health information and communications technology (ICT) System
to support public health sector bodies in making evidence-based decisions.

It shall include both the development of the necessary digital tools (such as software and ICT
infrastructure) as well as the upskilling of health workers and Ministry of Health personnel to
use the system for data collection and information extraction. Following the European Centre
for Disease Prevention and Control (ECDC) and World Health Organisation (WHO)
guidelines, the Influenza Sentinel Surveillance (ISS) module of the Cyprus Innovative Public
Health ICT System shall record epidemiological data informing the Ministry of Health of
potential epidemiological outbursts. The Ministry of Health shall assign 150 doctors as
sentinels who shall enter data in the Influenza Sentinel Surveillance (ISS) module of the
Cyprus Innovative Public Health ICT System.

The implementation of the investment shall be completed by 31 December 2025.

Investment 3 (C1.1I3): Purchase/replacement of medical equipment in hospitals

The investment aims at enabling private hospitals to invest within a short timeframe in the
modernisation of their medical equipment increasing the quality of health services provided.

The measure shall comprise a support scheme for private hospitals supporting the upgrade or
replacement of medical equipment. Applications for funding shall be assessed based on
transparent selection criteria by a special Assessment Committee, which shall be appointed by
the Minister of Health.

The implementation of the investment shall be completed by 31 December 2025.

2

Investment 4 (C1.1I4): Accreditation of public and private hospitals

The objective of this investment is to support the accreditation of hospitals, enabling their
registration within the National Health System (NHS) and enhancing the quality assurance of
health care services provided.

It shall consist in a sponsorship scheme facilitating the accreditation of hospitals by covering
part of (i) the costs incurred by private and public hospitals related to accreditation advisory
services from external experts (on how to make the necessary preparations for the
accreditation) and (ii) accreditation fees charged by internationally recognised bodies.

The implementation of the investment shall be completed by 31 December 2025.

                                     Investment 6 (C1.1I6): Deployment of generic cross border e health services in Cyprus

The measure aims at extending e-health services to allow cross-border exchange of patient
health information (in particular patient summaries and e-prescriptions), to become part of a
secure peer-to-peer e-health network within the EU.

It shall consist in putting in operation a cross-border data exchange between Cyprus and
Union Member States with operational National Contact Points for eHealth (NCPeH), such as
e-prescriptions, e-dispensations, patient summaries, and additional data sets (amongst others
discharge forms, laboratory results and imaging) as agreed with the eHealth Digital Service
Infrastructure (eHDSI).

The implementation of the investment shall be completed by 30 June 2025.

Investment 7 (C1.1I7): Public warning system for supporting emergency operations through
SMS

The objective of the investment is to enhance Cyprus’ civil protection system by establishing
a modern public warning system targeting the whole population through a mobile application
to increase public safety, preparedness and resilience.

The measure shall consist in putting in operation a public warning system reaching the whole
population through a mobile application or SMS for alerting on imminent or developing
emergencies.

The implementation of the investment shall be completed by 31 December 2025.

3

**-**
**A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|~~**Unit of**~~<br>**measure**|~~**Baseline**~~|~~**Goal**~~|~~**Quarter**~~|~~**Year**~~|~~**Year**~~|
|1|C1.1R1<br>National Centre<br>for Clinical<br>Evidence and<br>Quality<br>Improvement|Target|Clinical<br>protocols<br>prepared,<br>audited and<br>peer<br>reviewed<br>|-|Number|0|50|Q4|2024|At least 50 clinical protocols prepared, audited<br>and peer reviewed by a team of experts, with key<br>characteristics of protocols being:<br>• evidence-based medicine (EBM) clinical<br>practice recommendations,<br>• implementation guide, <br>• audit plan.|
|2|C1.1R1<br>National Centre<br>for Clinical<br>Evidence and<br>Quality<br>Improvement|Target|Clinical<br>protocols<br>prepared,<br>audited and<br>peer<br>reviewed|-|Number|50|90|Q4|2025|At least 90 clinical protocols prepared, audited<br>and peer reviewed by team of experts, with key<br>characteristics of protocols being:<br>• evidence-based medicine (EBM) clinical<br>practice recommendations,<br>• implementation guide, <br>• audit plan.|
|3|C1.1R2<br>Design of an<br>Electronic<br>platform for the<br>surveillance of<br>Nosocomial<br>Antibiotic<br>Consumption<br>and Healthcare<br>– Associated<br>Infections|Milestone|Adoption of<br>the list of<br>health care<br>facilities|Adoption of the<br>list of health<br>care facilities|-|-|-|Q1|2023|Adoption of the list of health care facilities that<br>shall be providing information to the Health<br>Insurance Organisation on antibiotic<br>consumption and shall be monitored by the<br>Health Insurance Organisation.|
|4|C1.1R2<br>Design of an<br>Electronic<br>platform for the<br>surveillance of<br>Nosocomial|Milestone|Electronic<br>platform<br>including<br>monitoring<br>system is<br>fully|Electronic<br>platform up and<br>running|-|-|-|Q4|2025|Electronic platform to process data from hospital<br>pharmacies (nosocomial antibiotic<br>consumption), microbiology laboratories<br>(antimicrobial resistance), and hospitals<br>(healthcare-associated infections (HAIs)) shall<br>be fully operational (Installed at all points of use|

4

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Antibiotic<br>Consumption<br>and Healthcare<br>– Associated<br>Infections<br>||operational<br>|||||||and real data are being entered) and a system<br>monitoring its effectiveness shall be in place.<br>|
|~~5 ~~|~~C1.1I1~~<br>New facilities<br>for the Cyprus<br>Blood<br>Establishment<br>and<br>procurement of<br>the latest<br>technology<br>attendant<br>equipment|~~Milestone~~|~~Contract~~<br>signature for<br>the<br>construction<br>of the<br>Cyprus<br>Blood<br>Establishme<br>nt|~~Signature of the~~<br>contract|~~ -~~|~~ -~~|~~ -~~|~~Q3~~|~~2022~~|~~Signature of the contract with the selected~~<br>tenderer(s) (contractor(s)) selected under a<br>competitive call for tenders for the construction<br>of the Cyprus Blood Establishment.|
|6|C1.1I1<br>New facilities<br>for the Cyprus<br>Blood<br>Establishment<br>and<br>procurement of<br>the latest<br>technology<br>attendant<br>equipment|Milestone|New blood<br>establishmen<br>t facilities<br>including all<br>equipment<br>are fully<br>operational<br>|Completion of<br>the construction<br>and start of<br>operations|-|-|-|Q2|2025|The new blood establishment facilities shall be<br>constructed and fully operational housing the<br>Cyprus Blood Establishment. The new facilities<br>shall have a primary energy demand that is at<br>least 20% lower than defined in the nearly zero-<br>energy building (NZEB) requirement. New<br>relevant equipment shall be operational and the<br>transfer of the existing equipment from the<br>present Blood Establishment premises to the new<br>facilities shall be complete.|
|7|C1.1I2<br>Cyprus<br>Innovative<br>Public Health<br>information and<br>communication<br>s technology|Milestone|Influenza<br>Sentinel<br>Surveillance<br>(ISS)System|Fully<br>operational<br>system|-|-||Q2|2022|The Influenza Sentinel Surveillance System<br>module of the Cyprus Innovative Public Health<br>information and communications technology<br>(ICT) System shall be operational and a system<br>monitoring its effectiveness shall be in place.|

5

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||(ICT) System||||||||||
|8|C1.1I2<br>Cyprus<br>Innovative<br>Public Health<br>information and<br>communication<br>s technology<br>(ICT) System|Target|Sentinels<br>entering data<br>in the<br>Influenza<br>Sentinel<br>Surveillance<br>System<br>module|-|Number|0|150|Q4|2025|Following the European Centre for Disease<br>Prevention and Control (ECDC) and World<br>Health Organisation (WHO) guidelines, the<br>Influenza Sentinel Surveillance System (ISS)<br>module of the Cyprus Innovative Public Health<br>ICT System shall record epidemiological data<br>entered in the online digital platform by general<br>practitioners (GPs) to inform the Ministry of<br>Health of potential outbursts. The Ministry of<br>Health shall assign at least 150 doctors as<br>sentinels that shall enter data in the ISS module<br>of the Cyprus Innovative Public Health ICT<br>System.|
|9 <br>|C1.1I3<br>Purchase/replac<br>ement of<br>medical<br>equipment in<br>hospitals<br>|Target<br>|Health<br>institutions<br>having<br>benefitted<br>from the<br>financial<br>support<br>scheme<br>|-<br>|Number<br>|0 <br>|10<br>|Q4<br>|2023<br>|At least ten of the applicant health institutions of<br>various categories have received financial<br>support from the scheme for medical equipment<br>acquisition.<br>|
|~~10~~|~~C1.1I3~~<br>Purchase/replac<br>ement of<br>medical<br>equipment in<br>hospitals|~~Target~~|~~Health~~<br>institutions<br>having<br>benefitted<br>from the<br>financial<br>support<br>scheme|~~ -~~|~~Number~~|~~10~~|~~23~~|~~Q4~~|~~2025~~|~~At least 23 of the applicant health institutions of~~<br>various categories have received financial<br>support from the scheme for medical equipment<br>acquisition.|
|11|C1.1I4<br>Accreditation of<br>public and<br>private hospitals|Target|Health<br>institutions<br>having<br>benefitted|-|Number|0|20|Q2|2024|At least 20 of the applicant health institutions of<br>various categories have been supported from the<br>scheme for gaining accreditation.|

6

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||from the<br>scheme<br>covering<br>accreditation<br>related costs<br>||||||||
|~~12~~|~~C1.1I4~~<br>Accreditation of<br>public and<br>private hospitals|~~Target~~|~~Health~~<br>institutions<br>having<br>benefitted<br>from the<br>scheme<br>covering<br>accreditation<br>related costs|~~- ~~|~~Number~~|~~20~~|~~45~~|~~Q4~~|~~2025~~|~~At least 45 of the applicant health institutions of~~<br>various categories have been supported from the<br>scheme for gaining accreditation.|
|13|C1.1I6<br>Deployment of<br>generic cross<br>border e-health<br>services in<br>Cyprus|Milestone|Completion<br>of the<br>analysis,<br>design and<br>development<br>phase of the<br>IT System<br>for cross-<br>border e-<br>health<br>services|Completion of<br>the analysis,<br>design and<br>development<br>phase of the IT<br>System, as<br>provided in a<br>dedicated report<br>by the<br>deliverables<br>acceptance team<br>in the<br>contracting<br>authority|-|-|-|Q4|2023|The analysis, design and development of the IT<br>System phase shall be completed.<br>Specifications shall include:<br>a) mobile video communication,<br>b) geolocation,<br>c) capability lookup,<br>d) the Cross-Community Patient Discovery<br>Profile (to locate communities that hold patient<br>relevant health data and the translation of patient<br>identifiers across communities holding the same<br>patient’s data), <br>e) for cybersecurity Cross-Layered Detection<br>and Response (XDR) and e-ID,<br>f) automatic data collection and evaluation,<br>g) for both Cypriot and foreign residents: (i) an<br>open source National Contact Point update for e-<br>health, (ii) updated patient summary, and (iii) e-<br>Prescription,<br>h) sharing of unstructured clinical documents,<br>and|

7

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||i) patient access to cross border data services,<br>based on wave 6 Clinical Document Architecture<br>Implementation Guidelines by the e-Health<br>network.<br>A new service shall also be created to enable the<br>exchange of structured and coded clinical<br>documents that may include images/images<br>reports, discharge letters (encounter report),<br>electronic health records, and laboratory results.|
|14|C1.1I6<br>Deployment of<br>generic cross<br>border e-health<br>services in<br>Cyprus|Milestone|Full<br>operation of<br>cross-border<br>healthcare<br>data<br>exchange|Approval of the<br>system by the<br>National<br>eHealth<br>Authority|-|-|-|Q2|2025|Full operation of cross-border data exchange<br>between Cyprus and countries with Operational<br>National Contact Points for eHealth (such as e-<br>prescriptions, e-dispensations, patient summaries<br>exchanged with Cyprus) and additional data sets<br>(such as discharge forms, laboratory results and<br>imaging) as agreed with eHealth Digital Service<br>Infrastructure.|
|15|C1.1I7<br>Public warning<br>system for<br>supporting<br>emergency<br>operations<br>through SMS|Milestone|Newly<br>established<br>public<br>warning<br>system and<br>its<br>monitoring<br>system are<br>fully<br>operational|The Technical<br>Committee<br>signs off final<br>Systems<br>Acceptance and<br>go-live Report<br>for the public<br>warning system|-|-|-|Q4|2025|The public warning system shall be operational<br>and a monitoring system shall be in place<br>reaching the whole population through a mobile<br>application and/or SMS.<br>The terminal points machines for SMS sending<br>shall be fully operational.|

8

**A.3. Description of the reforms and investments for the loan**

Reform 3 (C1.1R3): Gradually shifting of the healthcare provision and reimbursement
framework towards value-based models

The aim of the reform is to introduce and gradually move to value-based healthcare models to
complement current volume-based healthcare models, to improve health outcomes and limit

costs.

It shall consist in the development of appropriate value-based models and initiatives, with
relevant monitoring mechanisms to measure and track the success of the reform, and the
introduction of value-based models in the Reimbursement Decision for primary and in-patient
care as per the General Health System Legislation.

The implementation of the reform shall be completed by 31 March 2023.

Investment 5 (C1.1I5): Enhancement, modernisation and upgrade of Cyprus State Hospitals

The objective of this investment is to enhance, modernise and/or upgrade the Cyprus State
Hospitals to enable them to compete on an equal basis with the private sector whilst at the
same time improving the quality of healthcare services as well as working conditions for
health workers in public hospitals.

This measure shall consist in the enhancement, modernisation and/or upgrade of the following
nine State Hospitals: (1) enhancement of the Makarios Hospital for Children to offer a
complete treatment of cases to children; (2) construction and/or extension of Haemodyalisis
Unit at Paphos and Limassol Hospitals; (3) construction of a Mental Health Hospital; (4)
enhancement of the Limassol General Hospital; (5) enhancement of the Accident and
Emergency Units across all State Cyprus Hospitals; (6) enhancement of the Paphos General
Hospital; (7) extension of Invasive Radiology Unit including medical equipment (such as
Angiography Unit); (8) construction of a COVID-19 Unit at the Famagusta Hospital; and (9)
creation of a Communicable Diseases Unit at the Limassol General Hospital. Building
renovations shall aim at achieving on average at least a 30% primary energy demand
reduction. The Haemodyalisis unit at Paphos Hospital shall have a primary energy demand
that is at least 20% lower than defined by the nearly zero-energy building (NZEB)
requirement.

The implementation of the investment shall be completed by 30 June 2026.

9

**A.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan**

|Sequential Related Measure Milestone / Name Qualitative Quantitative indicators<br>Number (Reform or Target indicators (for targets)<br>Investment) (for Unit of Baseline Goal<br>milestones) measure|Col2|Col3|Col4|Col5|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>**Related Measure**<br>**(Reform or**<br>**Investment)**<br>**Milestone /**<br>**Target**<br>**Name**<br>**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>**Quantitative indicators** <br>**(for targets)**<br>**Unit of**<br>**measure**<br>**Baseline**<br>**Goal**<br><br><br><br><br><br><br><br>|**Sequential**<br>**Number**<br>**Related Measure**<br>**(Reform or**<br>**Investment)**<br>**Milestone /**<br>**Target**<br>**Name**<br>**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>**Quantitative indicators** <br>**(for targets)**<br>**Unit of**<br>**measure**<br>**Baseline**<br>**Goal**<br><br><br><br><br><br><br><br>|**Sequential**<br>**Number**<br>**Related Measure**<br>**(Reform or**<br>**Investment)**<br>**Milestone /**<br>**Target**<br>**Name**<br>**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>**Quantitative indicators** <br>**(for targets)**<br>**Unit of**<br>**measure**<br>**Baseline**<br>**Goal**<br><br><br><br><br><br><br><br>|**Sequential**<br>**Number**<br>**Related Measure**<br>**(Reform or**<br>**Investment)**<br>**Milestone /**<br>**Target**<br>**Name**<br>**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>**Quantitative indicators** <br>**(for targets)**<br>**Unit of**<br>**measure**<br>**Baseline**<br>**Goal**<br><br><br><br><br><br><br><br>|**Sequential**<br>**Number**<br>**Related Measure**<br>**(Reform or**<br>**Investment)**<br>**Milestone /**<br>**Target**<br>**Name**<br>**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>**Quantitative indicators** <br>**(for targets)**<br>**Unit of**<br>**measure**<br>**Baseline**<br>**Goal**<br><br><br><br><br><br><br><br>|**Quantitative indicators** <br>**(for targets)**|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~16~~|~~C1.1R3~~<br>Gradually shifting<br>the healthcare<br>provision and<br>reimbursement<br>framework<br>towards value-<br>based models.|~~Milestone~~|~~Value-~~<br>based<br>reimburse<br>ment to be<br>reflected<br>for primary<br>and in-<br>patient<br>care|~~Value-based~~<br>reimbursement<br>to be reflected<br>in the<br>Reimburseme<br>nt Decision|~~- ~~|~~- ~~|~~- ~~|~~Q1~~|~~2023~~|~~Annual reimbursement decisions in the~~<br>general health system shall be adjusted to<br>include value-based reimbursement for<br>primary and in-patient care.|
|17<br>|C1.1I5<br>Enhancement,<br>modernisation and<br>upgrade of Cyprus<br>State Hospitals<br>|Target<br>|Enhanced,<br>constructe<br>d and/or<br>upgraded<br>State<br>hospitals<br>|- <br>|Number<br>|0 <br>|7 <br>|Q2<br>|2024<br>|At least seven State hospitals shall be<br>enhanced, constructed and/or upgraded.<br>Building renovations shall aim at achieving<br>on average at least a 30% primary energy<br>demand reduction. The Haemodyalisis unit<br>at Paphos Hospital shall have a primary<br>energy demand that is at least 20% lower<br>than defined by the nearly zero-energy<br>building (NZEB) requirement. The end of<br>works shall be attested by taking over<br>issued certificates, of the completed works.<br>|
|~~18~~|~~C1.1I5~~<br>Enhancement,<br>modernisation and<br>upgrade of Cyprus<br>State Hospitals|~~Target~~|~~Enhanced,~~<br>constructe<br>d and/or<br>upgraded<br>State<br>hospitals|~~ -~~|~~Number~~|~~7~~|~~9 ~~|~~Q2~~|~~2026~~|~~Nine State hospitals shall be enhanced,~~<br>constructed and/or upgraded. Building<br>renovations shall aim at achieving on<br>average at least a 30% primary energy<br>demand reduction. The Haemodyalisis unit<br>at Paphos Hospital shall have a primary<br>energy demand that is at least 20% lower<br>than defined by the nearly zero-energy<br>building (NZEB) requirement. The end of<br>works shall be attested by taking over<br>issued certificates of the completed works.|

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**B.** **COMPONENT** **2.1:** **C** **LIMATE NEUTRALITY** **,** **E** **NERGY EFFICIENCY AND** **R** **ENEWABLE**
**E** **NERGY**

This component of the Cypriot Recovery and Resilience Plan aims to address the challenge of
climate change mitigation by contributing to the country’s transition to climate neutrality.

The objectives of the component are to improve the environment policy through measures
relating to green taxation, the opening up of the electricity market and the facilitation of
licensing of renewable energy and renovation projects. The component aims to improve the
energy efficiency of the building stock and other infrastructure and to support green
investments for SMEs, households, the wider public sector and NGOs. The component also
targets the alleviation of energy poverty and aims to address Cyprus’ energy isolation.

The component supports addressing the Country Specific Recommendations for the years
2019 and 2020 that recommend focusing investment and investment-related policies on
energy efficiency and renewable energy (Country-Specific Recommendation 4 of 2019 and
Country-Specific Recommendation 3 of 2020).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**B.1.** **Description of the reforms and investments for non-repayable financial support**

Reform 1 (C2.1R1): Green Taxation

The objectives of the measure are to promote a shift towards a more efficient use of
environmental resources, reduce greenhouse gas emissions and to increase the penetration of
renewable energy.

The reform shall consist in legislative changes introducing a carbon tax for fuels used in the
sectors of the economy that do not fall under the EU greenhouse gas Emissions Trading
System. The reform shall also entail the gradual introduction of a levy on water, as well as the
introduction of a charge on household/landfill waste. The reform shall aim at making a
tangible contribution to reaching the 2030 climate and energy targets to reduce greenhouse
gas emissions and increase the share of renewable energy. The legislative changes shall be
based on the findings of an independent study to be undertaken.

The implementation of the reform shall be completed by 30 June 2026.

Reform 2 (C2.1R2): Independence of Cyprus Transmission System Operator (TSOC) from
the incumbent Electricity Authority of Cyprus

The objective of the measure is to enhance competition in the electricity market by creating
conditions for new investors to participate in the generation, storage, aggregation, demand
response and supply of electricity.

The reform shall consist in ensuring the independence of the Cyprus Transmission System
Operator (TSOC) from the incumbent Electricity Authority of Cyprus (EAC) in terms of
governance, financial and personnel management. The measure shall also facilitate supplier
switching, which is expected to reduce the cost of electricity for domestic and
commercial/industrial customers.

The implementation of the reform shall be completed by 31 December 2021.

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                     Reform 3 (C2.1R3): Digital One Stop Shops to streamline RES projects permitting and to
facilitate Energy Renovation in Buildings

The objective of the measure is to promote the implementation of RES projects by
streamlining the RES projects permitting process. The reform shall also aim at accelerating
the energy renovation of buildings.

The reform shall consist in digitalising the licensing permitting process for RES projects and
establishing a single point of contact for technical and financial support for the purposes of
energy renovation of buildings.

The implementation of the reform shall be completed by 31 December 2022.

Reform 4 (C2.1R4): Energy Storage Regulatory Framework

The objective of the measure is to establish a regulatory framework for promoting the
participation of storage facilities in the electricity market.

The reform shall consist in amending the Transmission and Distribution Rules (TDRs) and the
Trading and Settlement Rules (TSRs) to allow storage facilities to participate in the wholesale
electricity market. This is expected to promote the generation of electricity from renewable
energy systems and to contribute to the efficiency and economic viability of the electricity
market as a whole.

The implementation of the reform shall be completed by 31 December 2021.

Investment 1 (C2.1I1): Promoting energy efficiency investments in SMEs, municipalities,
communities and the wider public sector

The objective of the measure is to reduce the primary and final energy consumption and the
CO2 emissions in buildings and/or facilities owned or operated by SMEs, local authorities
(Municipalities and Communities) and organisations of the wider public sector.

The investment shall consist in providing support to at least 275 entities for building
renovation and for making production processes more efficient. The grant scheme shall also
promote the execution of energy audits, as well as the adoption of digital technologies and the
integration of renewables. The investment shall aim at achieving on average at least a 30%
primary energy demand reduction.

It is expected that this measure does not do significant harm to environmental objectives
within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the
description of the measure and the mitigating steps set out in the recovery and resilience plan
in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the call for
proposals for this measure shall reflect that the purchasing of biomass boilers shall comply
with the provisions of the Directive 2008/50/EC on ambient air quality and cleaner air for
Europe, the Renewable Energy Directive 2018/2001/EU and relevant national legislation on
air pollutant emissions.

The implementation of the investment shall be completed by 31 December 2025.

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Investment 2 (C2.1I2): Promoting renewables and individual energy efficiency measures in
dwellings and tackling energy poverty in households with people with disabilities

The objective of the measure is to encourage the use of renewable energy sources and energy
savings by the large stock of old dwellings, as well as to subsidise the implementation of
small-scale energy renovations in energy poor households as well as in households with
people with disabilities.

The investment is composed of two sub-measures: (i) a support scheme for promoting
renewables and individual energy efficiency measures in dwellings and (ii) a support scheme
for addressing energy poverty in households with people with disabilities.

Sub-measure 1: promoting renewables and energy efficiency measures in dwellings

The investment shall consist in providing grants to at least 16 200 dwellings (including
households of vulnerable electricity consumers) for thermal insulation of roofs and/or for the
installation of a photovoltaic system and/or for the installation or replacement of Solar Water
Heating (SWH) Systems of an existing dwelling.

Sub-measure 2: addressing energy poverty in households with people with disabilities

The investment shall consist in providing support for the implementation of small-scale
energy renovations, such as thermal insulation and energy efficient equipment, in at least 270
energy poor households as well as households with people with disabilities.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (C2.1I3): Encouraging the use of renewables and energy savings by local/wider
public authorities as well as NGOs and facilitating the transition of local communities towards
climate mitigation & adaptation

The objective of the measure is to promote the use of RES and energy savings by the large
stock of old infrastructure used by local authorities, as well as to build a pipeline of
sustainable energy and climate adaptation investment projects across rural communities in
Cyprus.

The investment is composed of two sub-measures: (i) encouraging the use of renewables and
energy savings by local/wider public authorities as well as NGOs; and (ii) facilitating the
transition of local communities towards climate mitigation and adaptation. The investment
shall aim at achieving on average at least a 30% primary energy demand reduction.

Sub-measure 1: Encouraging the use of renewables and energy savings by local/wider
public authorities as well as NGOs

The sub-measure shall consist in setting up a grant scheme for providing support for largescale energy efficiency and RES measures in buildings, infrastructure, and social housing
targeting local public authorities and NGOs.

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Sub-measure 2: Facilitating the transition of local communities towards climate
mitigation and adaptation

The sub-measure shall consist in providing technical support to rural Community Councils in
developing Sustainable Energy and Climate Plans and implementing energy and climate
investments, as well as in setting up a grant scheme to support sustainable energy and climate
adaptation investments.

The two sub-measures together shall lead to at least 580 investments for improving energy
performance and resilience to climate change to be undertaken by local authorities or NGOs.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C2.1I4): Reduction of CO2 emissions in industries, businesses and
organisations

The objective of the measure is to encourage industries, businesses and organisations to
engage in transformations targeting decarbonisation and to implement action plans to reduce
greenhouse gas emissions in their operations and/ or supply chains.

The investment consists in setting up a support scheme providing financing, equivalent to the
cost for the purchase of greenhouse gas emission allowances to be avoided due to the
reduction in emissions resulting from the beneficiaries’ actions. At least 354 566 tons of
CO2eq shall be reduced as a result of the support provided.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities: (i) activities related to fossil
fuels, including downstream use [1] ; (ii) activities under the EU Emission Trading System (ETS)
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks [2] ; (iii) activities related to waste landfills, incinerators [3] and mechanical biological
treatment plants [4] ; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 30 June 2026.

1 Except projects under this measure in power and/or heat generation, as well as related transmission and
distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the
‘Do no significant harm’ Technical Guidance (2021/C58/01).
2 Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than
the relevant benchmarks an explanation of the reasons why this is not possible shall be provided. Benchmarks
established for free allocation for activities falling within the scope of the Emissions Trading System, as set out
in the Commission Implementing Regulation (EU) 2021/447.
3 This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of
increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration
ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing
capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
4 This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants,
where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to
recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided
such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an
extension of the lifetime of the plants; for which evidence is provided at plant level.

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Investment 5 (C2.1I5): Energy Efficiency Upgrading of public buildings

The objective of the measure is to facilitate the energy upgrading and increased energy
efficiency of selected public buildings, i.e. fire service properties, schools, the Nicosia
General Hospital, water treatment plants and water pumping stations.

The investment is composed of three sub-measures: (i) Fire Service Properties and Schools;
(ii) Nicosia General Hospital; and (iii) Installation of Grid connected Photovoltaic Energy
Systems in Water Treatment Plants and water pumping stations.

Sub-measure 1: Fire Service Properties and Schools

The sub-measure consists in the implementation of energy upgrades in the 16 Urban Fire
Stations in Cyprus, the Fire Brigade Headquarters, and two rural Fire Stations. The submeasure shall also cover the installation of thermal insulation and photovoltaic systems in at
least 405 schools.

The investment shall aim at achieving on average at least a 30% primary energy demand
reduction.

Sub-measure 2: Nicosia General Hospital

The sub-measure shall consist in the setting up and installation of photovoltaics system at the
Nicosia General Hospital of a total capacity of 943 KW.

Sub-measure 3: Water Treatment Plants and water pumping stations

The sub-measure shall consist in the installation of grid connected photovoltaic energy
systems of total power of 2 MWp in water treatment plants and water pumping stations.

The implementation of the investment shall be completed by 31 December 2025.

Investment 6 (C2.1I6): Upgrading renewable energy and smart grids testing infrastructure at
the University of Cyprus

The objective of the measure is to upgrade the renewable energy and smart grids testing
infrastructure at the University of Cyprus and to integrate this infrastructure in the future
smart grid.

The investment shall consist in delivery, installation, testing, calibration, commissioning and
acceptance of smart grids equipment, followed by final infrastructure integration. The
measure shall also include personnel orientation and training.

The implementation of the investment shall be completed by 30 June 2024.

Investment 7 (C2.1I7): Mass installation and operation by the Distribution System Operator
(DSO) of Smart Metering Infrastructure (Advanced Metering Infrastructure)

The objective of the measure is to facilitate the mass roll-out of smart meters in Cyprus.

The investment shall consist in the delivery and installation of 400 000 smart meters to final
electricity customers, including natural and legal persons.

The implementation of the investment shall be completed by 30 June 2026.

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Investment 8 (C2.1I8): Monitoring and reduction of GHG emissions in agriculture

The objective of the measure is to enhance the monitoring for greenhouse gas emissions from
agriculture in Cyprus and contribute to their reduction.

The investment shall consist in the establishment of a GHG monitoring system for agriculture,
which shall provide data for the implementation of more efficient mitigation practices and
contribute to achieving a 10% reduction of GHG emissions from agriculture by end 2025.

The implementation of the investment shall be completed by 31 December 2025.

Investment 9 (C2.1I9): Forests fire protection

The objective of the measure is to upgrade the capabilities of relevant authorities in Cyprus to
cope with fire hazards and to strengthen the protection against the risks faced by citizens,
infrastructure and forests.

The investment shall consist in the purchasing of firefighting aircraft, vehicles, equipment and
related training and servicing for the period of implementation of the measure. This shall
include the supply of the following vehicles, machinery and equipment: 75 transport vehicles
for patrol purposes for forest protection and transfer of staff in fire incidents; 12 large fire
trucks; 25 emergency firefighting vehicles; four bulldozers for the construction of fire
protection works with the possibility of transport by truck for rapid transport to fires; four
ground bulldozers for the construction of fire protection works; six agricultural tractors
equipped with the necessary tools for the implementation of fire prevention measures; fourwheel excavators / loaders; six branch shredders; four loaders (trucks) and six 20-tonne
tankers for fire protection purposes; one firefighting aircraft.

The implementation of the investment shall be completed by 31 December 2025.

Investment 10 (C2.1I10): Market Management System to facilitate the opening of the
electricity market to competition

The objective of the measure is to introduce a Market Management System by the Cyprus
Transmission System Operator as a tool for facilitating the opening of the electricity market to
competition.

The investment shall consist in the installation and roll-out of the Market Management
System for the Cyprus Electricity Market and related training of 100% of the personnel of the
Transmission System Operator.

The implementation of the investment shall be completed by 31 March 2023.

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**B.2.** **Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**<br>|**Milestone /**<br>**Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~19~~|~~C2.1R1~~<br>Green<br>Taxation|~~Milestone~~|~~Entry into~~<br>force of a law<br>introducing a<br>carbon tax<br>for fuels, a<br>levy on water<br>and a charge<br>on<br>household/<br>landfill waste|~~Provision in~~<br>the law<br>indicating the<br>entry into<br>force of a law<br>introducing a<br>carbon tax for<br>fuels, a levy<br>on water and<br>a charge on<br>household/<br>landfill waste|~~ -~~|~~ -~~|~~ -~~|~~Q2~~|~~2023~~|~~Entry into force of legislative changes that shall aim at~~<br>making a tangible contribution to reaching the 2030 target for<br>reducing greenhouse gas emissions. The amendments shall<br>be based on the findings of an independent study to be<br>undertaken. The law shall in particular (a) introduce a carbon<br>tax for fuels used in the sectors of the economy that do not<br>fall under the EU greenhouse gas Emissions Trading System,<br>(b) introduce gradually a levy on water that shall reflect the<br>scarcity of this natural resource and the cost to the<br>environment of its use and (c) introduce of a country wide<br>charge on household/ landfill waste.|
|20|C2.1R1<br>Green<br>Taxation|Milestone|Impact<br>assessment<br>report<br>measuring<br>the reform’s<br>effect on the<br>environment<br>and the<br>economy|Publication of<br>the impact<br>assessment<br>report<br>measuring the<br>reform’s<br>effect on the<br>environment<br>and the<br>economy|-|-|-|Q2|2026|Impact assessment report measuring the reform’s effect on<br>the environment and the economic effect on households and<br>businesses, as well as recommending further tax<br>amendments, as necessary.|
|21|C2.1R2<br>Independe<br>nce of<br>Cyprus<br>Transmissi<br>on System|Milestone|Law for the<br>Regulation of<br>the<br>Electricity<br>Market of<br>2021|Provision in<br>the law<br>indicating the<br>entry into<br>force of the<br>2021 "Law|-|-|-|Q4|2021|Entry into force of the Law for the Regulation of the<br>Electricity Market of 2021, which shall facilitate the opening<br>of the electricity market to competition and boost the uptake<br>of RES by: (a) achieving the independence of the Cyprus<br>Transmission System Operator (TSOC) from the incumbent<br>Electricity Authority of Cyprus (EAC) (autonomy in|

17

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Operator<br>(TSOC)<br>from the<br>incumbent<br>Electricity<br>Authority<br>of Cyprus|||for the<br>Regulation of<br>the Electricity<br>Market"||||||governance, financial autonomy and independence of TSOC<br>personnel), (b) introducing the necessary steps for reducing<br>the cost of electricity for domestic and commercial/industrial<br>customers and (c) creating conditions of transparency and<br>trust to motivate new investors in generation and supply of<br>electricity.|
|22|C2.1R3<br>Digital<br>One-Stop<br>Shops to<br>streamline<br>RES<br>projects<br>permitting<br>and to<br>facilitate<br>Energy<br>Renovatio<br>n in<br>Buildings|Milestone|Fully<br>operational<br>IT platform|Fully<br>operational IT<br>platform<br>accepted by<br>the Ministry<br>of Energy,<br>Commerce<br>and Industry|-|-|-|Q4|2022|Fully operational IT platform for (1) guiding the applicant<br>through the administrative permit application process in a<br>transparent manner up to the delivery of one or several<br>decisions by the responsible authorities, (2) providing the<br>applicant with all necessary information and involve, where<br>appropriate, other administrative authorities.|
|23|C2.1R4<br>Energy<br>Storage<br>Regulator<br>y <br>Framewor<br>k|Milestone|Amendment<br>of the<br>Transmission<br>and<br>Distribution<br>Rules<br>(TDRs) and<br>Trading and<br>Settlement|Publication<br>on the<br>website of the<br>Cyprus<br>Energy<br>Regulatory<br>Authority of<br>Amendment<br>of the|-|-|-|Q4|2021|Entry into force of an amendment to the Transmission and<br>Distribution Rules (TDRs) and Trading and Settlement Rules<br>(TSRs) which shall provide the necessary regulatory<br>framework (market rules) and technical modalities that shall<br>allow storage facilities to:<br>- participate in the wholesale electricity market,<br>- promote the development of an economically viable,<br>efficient, safe and consumer-oriented electricity market that<br>prioritises the generation of electricity from renewable|

18

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||Rules (TSRs)|Transmission<br>and<br>Distribution<br>Rules (TDRs)<br>and the<br>Trading and<br>Settlement<br>Rules (TSRs)||||||energy systems.|
|24<br>|C2.1I1<br>Promoting<br>energy<br>efficiency<br>investment<br>s in SMEs,<br>municipali<br>ties,<br>communiti<br>es and the<br>wider<br>public<br>sector<br>|Milestone<br>|Support<br>scheme for<br>Promoting<br>energy<br>efficiency<br>investments<br>in SMEs,<br>municipalitie<br>s,<br>communities<br>and the wider<br>public sector<br>|Publication of<br>call for<br>proposals for<br>the support<br>scheme for<br>Promoting<br>energy<br>efficiency<br>investments<br>in SMEs,<br>municipalities<br>, communities<br>and the wider<br>public sector<br>|- <br>|- <br>|- <br>|Q4<br>|2021<br>|Issue call for proposals for the support scheme for promoting<br>energy efficiency investments in SMEs, municipalities,<br>communities and the wider public sector, following<br>verification of state aid regulation to be applied by<br>Commissioner for State Aid Control and Council of<br>Ministers decision approving the scheme objectives. The<br>investment shall aim at achieving on average at least a 30%<br>primary energy demand reduction.<br> <br>|
|~~25~~|~~C2.1I1~~<br>Promoting<br>energy<br>efficiency<br>investment<br>s in SMEs,<br>municipali<br>ties,|~~Target~~|~~Entities~~<br>(SMEs,<br>municipalitie<br>s,<br>communities<br>and the wider<br>public sector)<br>having||~~Number~~|~~0 ~~|~~125~~|~~Q4~~|~~2024~~|~~At least 125 entities (SMEs, municipalities, communities and~~<br>the wider public sector) have implemented (1) energy<br>efficiency interventions (energy efficiency measures) in<br>buildings, or (2) energy efficiency measures related to their<br>production processes or (3) energy efficiency measures in<br>municipal sports facilities, due to the support provided with<br>an objective to achieve on average at least a 30% primary<br>energy demand reduction. The projects selected shall be in|

19

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||communiti<br>es and the<br>wider<br>public<br>sector||implemented<br>energy<br>efficiency<br>interventions|||||||compliance withthe ‘Do no significant harm’Technical<br>Guidance (2021/C58/01) through the use of an exclusion list<br>and the requirement of compliance with the relevant EU and<br>national environmental legislation.|
|26|C2.1I1<br>Promoting<br>energy<br>efficiency<br>investment<br>s in SMEs,<br>municipali<br>ties,<br>communiti<br>es and the<br>wider<br>public<br>sector|Target|Entities<br>(SMEs,<br>municipalitie<br>s,<br>communities<br>and the wider<br>public sector)<br>having<br>implemented<br>energy<br>efficiency<br>interventions||Number|125|275|Q4|2025|At least 275 entities (SMEs, municipalities, communities and<br>the wider public sector) have implemented (1) energy<br>efficiency interventions (energy efficiency measures) in<br>buildings, or (2) energy efficiency measures related to their<br>production processes or (3) energy efficiency measures in<br>municipal sports facilities, due to the support provided with<br>an objective to achieve on average at least a 30% primary<br>energy demand reduction. The projects selected shall be in<br>compliance withthe ‘Do no significant harm’ Technical<br>Guidance (2021/C58/01) through the use of an exclusion list<br>and the requirement of compliance with the relevant EU and<br>national environmental legislation.|
|27|C2.1I2<br>Promoting<br>renewable<br>s and<br>individual<br>energy<br>efficiency<br>measures<br>in<br>dwellings<br>and<br>tackling|Milestone|First call for<br>proposals for<br>Promoting<br>renewables<br>and<br>individual<br>energy<br>efficiency<br>measures in<br>dwellings|First call for<br>proposals<br>published|-|-|-|Q2|2021|The first call for proposals for promoting renewables and<br>individual energy efficiency measures in dwellings has been<br>published on the RES and Energy Conservation Fund<br>website. The investment shall aim at achieving on average at<br>least a 30% primary energy demand reduction.|

20

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||energy<br>poverty in<br>household<br>s with<br>people<br>with<br>disabilities||||||||||
|28|C2.1I2<br>Promoting<br>renewable<br>s and<br>individual<br>energy<br>efficiency<br>measures<br>in<br>dwellings<br>and<br>tackling<br>energy<br>poverty in<br>household<br>s with<br>people<br>with<br>disabilities|Target|Dwellings<br>and<br>households<br>with people<br>with<br>disabilities<br>having<br>improved<br>their energy<br>performance|-|Number|0|8 600|Q4|2023|At least 8 500 dwellings and 100 households with people<br>with disabilities have improved their energy performance due<br>to the tailored solutions (support services and energy<br>guidance) and the financial support provided with an<br>objective to achieve on average at least a 30% primary<br>energy demand reduction.|
|29|C2.1I2<br>Promoting<br>renewable<br>s and|Target|Dwellings<br>and<br>households<br>with people|-|Number|8600|16<br>470|Q2|2026|At least 16 200 dwellings and 270 households with people<br>with disabilities have improved their energy performance due<br>to the tailored solutions (support services and energy<br>guidance) and the financial support provided with an|

21

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||individual<br>energy<br>efficiency<br>measures<br>in<br>dwellings<br>and<br>tackling<br>energy<br>poverty in<br>household<br>s with<br>people<br>with<br>disabilities<br>||with<br>disabilities<br>having<br>improved<br>their energy<br>performance<br>|||||||objective to achieve on average at least a 30% primary<br>energy demand reduction.<br>|
|~~30~~|~~C2.1I3~~<br>Encouragi<br>ng the use<br>of<br>renewable<br>s and<br>energy<br>savings by<br>local/wide<br>r public<br>authorities<br>as well as<br>NGOs and<br>facilitating<br>the|~~Milestone~~|~~First call for~~<br>proposals to<br>support local<br>authorities in<br>energy<br>efficiency<br>measures|~~Publish First~~<br>call for<br>proposals|~~ -~~|~~ -~~|~~ -~~|~~Q3~~|~~2021~~|~~The first call for proposals to support local authorities in~~<br>energy efficiency measures has been published on the RES<br>and Energy Conservation Fund Website. The investment<br>shall aim at achieving on average at least a 30% primary<br>energy demand reduction.|

22

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||transition<br>of local<br>communiti<br>es towards<br>climate<br>mitigation<br>& <br>adaptation||||||||||
|31|C2.1I3<br>Encouragi<br>ng the use<br>of<br>renewable<br>s and<br>energy<br>savings by<br>local/wide<br>r public<br>authorities<br>as well as<br>NGOs and<br>facilitating<br>the<br>transition<br>of local<br>communiti<br>es towards<br>climate<br>mitigation<br>&|Target|Investments<br>undertaken<br>by local<br>authorities or<br>NGOs that<br>have<br>improved<br>their energy<br>performance,<br>and resilience<br>to climate<br>change|-|Number|0|190|Q4|2023|At least 190 investments undertaken by local authorities or<br>NGOs that have improved their energy performance, and<br>resilience to climate change due to the technical assistance<br>and the financial support provided with an objective to<br>achieve on average at least a 30% primary energy demand<br>reduction.|

23

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||adaptation||||||||||
|32<br>|C2.1I3<br>Encouragi<br>ng the use<br>of<br>renewable<br>s and<br>energy<br>savings by<br>local/wide<br>r public<br>authorities<br>as well as<br>NGOs and<br>facilitating<br>the<br>transition<br>of local<br>communiti<br>es towards<br>climate<br>mitigation<br>& <br>adaptation<br>|Target<br>|Investments<br>undertaken<br>by local<br>authorities or<br>NGOs that<br>have<br>improved<br>their energy<br>performance,<br>and resilience<br>to climate<br>change<br>|-<br>|Number<br>|190<br>|580<br>|Q2<br>|2026<br>|At least 580 investments undertaken by local authorities or<br>NGOs that have improved their energy performance, and<br>resilience to climate change due to the technical assistance<br>and the financial support provided with an objective to<br>achieve on average at least a 30% primary energy demand<br>reduction.<br>|
|~~33~~|~~C2.1I4~~<br>Reduction<br>of CO2<br>emissions<br>in<br>industries,|~~Target~~|~~Emissions~~<br>reduced|~~ -~~|~~Number~~|~~0 ~~|~~130~~<br>000|~~Q4~~|~~2024~~|~~At least 130 000 tonnes of CO2eq reduced due to support~~<br>provided. Emissions reductions shall be verified through<br>external experts’ reports.The projects selected shall be in<br>compliance withthe ’Do no significant harm’ Technical<br>Guidance (2021/C58/01) through the use of an exclusion list<br>and the requirement of compliance with the relevant EU and|

24

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||businesses<br>and<br>organisati<br>ons|||||||||national environmental legislation.|
|34|C2.1I4<br>Reduction<br>of CO2<br>emissions<br>in<br>industries,<br>businesses<br>and<br>organisati<br>ons|Target|Emissions<br>reduced<br>further|-|Number|130000|354<br>566|Q2|2026|At least 354 566 tonnes of CO2eq reduced due to support<br>provided. Emissions reductions shall be verified through<br>external experts’ reports. The projects selected shall be in<br>compliance withthe ’Do no significant harm’ Technical<br>Guidance (2021/C58/01) through the use of an exclusion list<br>and the requirement of compliance with the relevant EU and<br>national environmental legislation.|
|35|C2.1I5<br>Energy<br>Efficiency<br>Upgrading<br>of public<br>buildings|Target|Thermal<br>insulation<br>and<br>photovoltaic<br>systems<br>installed in<br>schools|-|Number|0|405|Q1|2022|Thermal insulation and photovoltaic systems installed in at<br>least 405 schools with an objective to achieve on average at<br>least a 30% primary energy demand reduction.|
|36|C2.1I5<br>Energy<br>Efficiency<br>Upgrading<br>of public<br>buildings|Target|Completion<br>of set up and<br>installation of<br>photovoltaics<br>system at the<br>Nicosia<br>General<br>Hospital|-|Number|0|943|Q4|2023|Completion of set up and installation of PV system at the<br>Nicosia General Hospital of total capacity of 943 KW.|
|37|C2.1I5|Target|Completion|-|Number|0|2 200|Q4|2025|Completion of installation of photovoltaic systems, of a total|

25

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Energy<br>Efficiency<br>Upgrading<br>of public<br>buildings||of installation<br>of<br>photovoltaic<br>systems in<br>water pump<br>stations and<br>fire stations|||||||capacity of 2 200KW, in water pump stations and fire<br>stations.|
|38|C2.1I6<br>Upgrading<br>renewable<br>energy and<br>smart<br>grids<br>testing<br>infrastruct<br>ure at the<br>University<br>of Cyprus|Milestone|Signature of<br>contract for<br>the<br>installation of<br>equipment to<br>upgrade the<br>electricity<br>grid into a<br>smart grid|Contract<br>Signature|-|-|-|Q4|2022|Signature of contract for the installation of equipment to<br>upgrade the electricity grid into a smart grid following a<br>successful public procurement procedure.|
|39<br>|C2.1I6<br>Upgrading<br>renewable<br>energy and<br>smart<br>grids<br>testing<br>infrastruct<br>ure at the<br>University<br>of Cyprus<br>|Milestone<br>|Delivery,<br>successful<br>installation<br>and<br>acceptance of<br>the<br>equipment<br>for smart<br>grids<br>|Issued<br>acceptance<br>report<br>|-<br>|-<br>|-<br>|Q2<br>|2024<br>|Delivery, successful installation, testing, calibration,<br>commissioning and acceptance of the equipment for smart<br>grids, followed by final infrastructure integration.<br>|
|~~40~~|~~C2.1I7~~|~~Milestone~~|~~Contract~~|~~Contract~~|~~ -~~|~~ -~~|~~ -~~|~~Q1~~|~~2022~~|~~Contract Signature for smart electricity metering~~|

26

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Mass<br>installatio<br>n and<br>operation<br>by the<br>Distributio<br>n System<br>Operator<br>(DSO) of<br>Smart<br>Metering<br>Infrastruct<br>ure<br>(Advanced<br>Metering<br>Infrastruct<br>ure)||Signature for<br>smart<br>electricity<br>metering<br>infrastructure|Signature||||||infrastructure (Hardware, software and support & other<br>services).|
|41|C2.1I7<br>Mass<br>installatio<br>n and<br>operation<br>by the<br>Distributio<br>n System<br>Operator<br>(DSO) of<br>Smart<br>Metering<br>Infrastruct|Target|Delivery and<br>installation of<br>smart meters|-|Number|0|200<br>000|Q3|2024|Acceptance of delivery and installation of at least 200 000<br>smart electricity meters to final electricity customers,<br>including natural and legal persons.|

27

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||ure<br>(Advanced<br>Metering<br>Infrastruct<br>ure)||||||||||
|42|C2.1I7<br>Mass<br>installatio<br>n and<br>operation<br>by the<br>Distributio<br>n System<br>Operator<br>(DSO) of<br>Smart<br>Metering<br>Infrastruct<br>ure<br>(Advanced<br>Metering<br>Infrastruct<br>ure)|Target|Delivery and<br>installation of<br>smart meters|-|Number|200000|40<br>0000|Q2|2026|Acceptance of delivery and installation of 400 000 smart<br>electricity meters to final electricity customers, including<br>natural and legal persons.|
|43|C2.1I8<br>Monitorin<br>g and<br>reduction<br>of GHG<br>emissions<br>in|Milestone|Purchase and<br>installation of<br>monitoring<br>units for<br>measuring<br>GHG<br>emissions|Approval of<br>the equipment<br>and<br>installation by<br>the receiving<br>committee|-|-|-|Q2|2023|Purchase and installation of automobile unit and permanent<br>monitoring units, for measuring GHG emissions from<br>agriculture with the objective of implementing adequate<br>policies to mitigate GHG emissions.|

28

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||agriculture||from<br>agriculture||||||||
|44<br>|C2.1I8<br>Monitorin<br>g and<br>reduction<br>of GHG<br>emissions<br>in<br>agriculture<br>|Target<br>|Reduction of<br>GHG<br>emissions<br>from<br>agriculture<br>|- <br>|% <br>(Percenta<br>ge)<br>|0 <br>|10<br>|Q4<br>|2025<br>|Achieve a 10% reduction of GHG emissions from agriculture<br>through monitoring GHG emissions and calculation of<br>National Emission Factors for GHG emissions and<br>implementation of Emission Factors through the National<br>Inventory for GHG emissions of the country. Reference total<br>emissions from Agriculture soils based on the National<br>Inventory Report of the country is 122,8 kt CO2 equivalent<br>for 2019.<br>|
|~~45~~<br>|~~C2.1I9~~<br>Forests<br>fire<br>protection<br>|~~Milestone~~<br>|~~Signing of~~<br>the<br>Agreements/<br>Contracts<br>Signatures<br>for the<br>purchase of<br>firefighting<br>aircraft,<br>vehicles,<br>equipment<br>and provision<br>of services<br>|~~Signing of the~~<br>Agreements/<br>Contracts<br>Signatures<br>|~~ -~~<br>|~~ -~~<br>|~~ -~~<br>|~~Q2~~<br>|~~2022~~<br>|~~Signing of the Agreements/ Contracts Signatures with~~<br>suppliers for the purchase of firefighting aircraft, vehicles,<br>equipment and provision of services with the objective to<br>contribute to climate change adaptation and to the reduction<br>of the risk of<br>explosion and expansion of forest fire and the strengthening<br>protection against the risks faced by citizens,<br>infrastructure and forests from a possible fire incident.<br>|
|~~46~~|~~C2.1I9~~<br>Forests<br>fire<br>protection|~~Milestone~~|~~Delivery of~~<br>firefighting<br>aircraft,<br>vehicles and<br>equipment|~~Acceptance~~<br>certificates<br>issued for the<br>delivery of<br>firefighting<br>aircraft,<br>vehicles and|~~ -~~|~~ -~~|~~ -~~|~~Q4~~|~~2023~~|~~Delivery and acceptance of firefighting aircraft, vehicles and~~<br>equipment.|

29

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||equipment|||||||
|47|C2.1I9<br>Forests<br>fire<br>protection|Milestone|Completion<br>of services|Acceptance<br>certificates<br>issued to<br>confirm the<br>acceptance of<br>services|-|-|-|Q4|2025|Completion of the following services: (1) firefighting<br>operations and pilot training (2) silvicultural practices and (3)<br>services for 3 unmanned aerial vehicle (UAV)– drones.|
|48|C2.1I10<br>Market<br>Managem<br>ent<br>System to<br>facilitate<br>the<br>opening of<br>the<br>electricity<br>market to<br>competitio<br>n|Milestone|Completion,<br>installation<br>and roll-out<br>of the Market<br>Management<br>System and<br>training of<br>personnel|Issuing of<br>Final<br>Acceptance<br>Certificate for<br>the Market<br>Management<br>System and<br>verification of<br>completion of<br>personnel<br>training|-|-|-|Q1|2023|Completion, installation and roll-out of the Market<br>Management System for the Cyprus Electricity Market and<br>training of the personnel of the Transmission System<br>Operator on the rolled-out information system and related<br>operational procedures.|

30

**B.3.** **Description of the reforms and investments for the loan**

Investment 11 (C2.1I11) Ending energy isolation – Project of Common Interest "EuroAsia
Interconnector"

The objective of the measure is to ensure security of supply and more competitive wholesale
electricity prices, and to enable the increased use of electricity from cleaner sources, in
particular renewables, by connecting the electricity network of Cyprus to the EU continental
system.

The investment shall consist in the completion and commissioning of the PCI 3.10.2
Interconnection between Cyprus and Greece, which shall include a DC 1 000 MW converter
station in Cyprus and related infrastructure in Cyprus and Crete, connected through 898 km of
HVDC submarine cables with 1 000 MW capacity. This is expected to be part of a broader
investment building a cross-border interconnector with a total length of 1 208 km between
Crete, Cyprus and Israel. Different parts of the project are expected to receive funding from
different sources, namely the Recovery and Resilience Facility, the Connecting Europe
Facility, a loan from the European Investment Bank, commercial loans and equity.

It is expected that this measure does not do significant harm to environmental objectives
within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the
description of the measure and the mitigating steps set out in the recovery and resilience plan
in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the
mitigating measures targeting the conservation of the marine environment shall be duly
respected during the implementation of the project as set out in the Environmental Impact
Assessment and the building permit. Any measures identified in the framework of the EIA
and the assessment under Directive 2000/60/EC as necessary to ensure compliance with the
DNSH Technical Guidance (2021/C58/01) shall be integrated into the project and complied
with at the stages of construction, operation and decommissioning of the infrastructure.

The implementation of the investment shall be completed by 31 December 2025.

31

**B.4.** **Milestones, targets, indicators, and timetable for monitoring and implementation for the loan**

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseli**<br>**ne**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~49~~<br>|~~C2.1I11~~<br>Ending energy<br>isolation - Project<br>of Common Interest<br>"EuroAsia<br>Interconnector"<br>|~~Milestone~~<br>|~~Start of the~~<br>construction<br>works of the<br>HVDC<br>Converter<br>Station in<br>Kofinou and the<br>onshore<br>infrastructure in<br>Cyprus<br>|~~Signed~~<br>agreement for the<br>construction of<br>Kofinou<br>Converter Station<br>|~~ -~~<br>|~~ -~~<br>|~~ -~~<br>|~~Q4~~<br>|~~2022~~<br>|~~Start of the construction works of the HVDC~~<br>Converter Station in Kofinou and the onshore<br>infrastructure in Cyprus following the securing<br>of relevant funding sources outside of the RRF.<br>|
|~~50~~|~~C2.1I11~~<br>Ending energy<br>isolation - Project<br>of Common Interest<br>"EuroAsia<br>Interconnector"|~~Milestone~~|~~Completion of~~<br>construction of<br>converter station|~~Issuance of the~~<br>taking over<br>certificate for the<br>construction of<br>converter station|~~ -~~|~~ -~~|~~ -~~|~~Q4~~|~~2024~~|~~Completion of construction of converter station~~<br>including installation of high-voltage and<br>control-equipment|
|51|C2.1I11<br>Ending energy<br>isolation - Project<br>of Common Interest<br>"EuroAsia<br>Interconnector"|Milestone|Completed and<br>fully operational<br>facility of the<br>electricity<br>interconnection<br>between Cyprus-<br>Crete (Greece)|Deliverables<br>acceptance team<br>signs off the<br>operational<br>efficiency of the<br>project;<br>public<br>announcement of<br>the start of<br>operation of the<br>interconnector|-|-|-|Q4|2025|Completed and fully operational facility of the<br>electricity interconnection between Cyprus-<br>Crete (Greece) to: (1) end the energy isolation of<br>Cyprus as an EU member state and (2) ensure<br>the security of energy supply (3) achieve<br>national climate targets as specified in the<br>National Climate Plan|

32

**C.** **COMPONENT** **2.2:** **S** **USTAINABLE** **T** **RANSPORT**

This component of the Cyprus recovery and resilience plan aims at promoting cleaner,
smarter, safer and fairer urban mobility by encouraging a modal shift from private cars to
more sustainable modes of transport such as public transport, cycling, walking, and to
promote the use of zero or low-emission vehicles (LEVs) as well as the use of digital systems
in the transport sector.

The component addresses the country-specific recommendations on investment in sustainable
transport (Country-Specific Recommendation 4 of 2019 and Country-Specific
Recommendation 3 of 2020).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**C.1. Description of the reforms and investments for non** **repayable financial support**

Reform 1 (C2.2R1): Establishment of an Intelligent Transport System using Digital Twin
technologies

The objective of the measure is to enhance technological infrastructure, to enable better and
more efficient monitoring of the infrastructure and to introduce smart features to it.

The reform consists in developing and implementing an Intelligent Transport System in order
to improve the mobility management in urban areas and the Cyprus TEN-T network, also by
improving the cooperation between various stakeholders. The reform shall include the
delivery, installation and connection to the National Access Point of 300 sensors. This
equipment is expected to constitute the basis for the digitalisation of the physical mobility
networks in a geographical information system (GIS) database and the integration of mobility
services.

The implementation of the reform shall be completed by 31 December 2025.

Reform 2 (C2.2R2): Provide the regulatory framework for an interoperable and effective
electric vehicle (EV) recharging infrastructure and an efficient EV recharging market

The objective of the measure is to facilitate the creation of an efficient electro-mobility
infrastructure for recharging EVs.

The reform consists in the entry into force of legislation on recharging infrastructure for EV.
The reform aims at creating a mechanism for (i) implementation and monitoring of the
recharging market for EV and (ii) coordinating data analysis allowing for the effective
network monitoring as well as for ensuring compliance with national and EU law.

The implementation of the reform shall be completed by 31 December 2024.

Reform 3 (C2.2R3): Progressively phase out the most polluting vehicles, especially in
polluted urban areas

The objective of the reform is to provide the regulatory framework to create impetus for
replacing old and polluting rolling stock, and to provide incentives for using sustainable
commuting and mobility solutions.

33

This reform shall set up the legal framework allowing the implementation of measures aiming
at the exclusion of polluting vehicles from key areas, such as no-emission zones, levies for the
circulation of vehicles in certain areas, and compulsory use of EV in certain transport
operations. The reform is supported by Investment 3 (Promote widespread use of EV, LEVs
and alternative means of transport).

The implementation of the reform shall be completed by 31 December 2025.

Investment 1 (C2.2I1): Implementation of Sustainable Urban Mobility Projects (SUMP) and

       accessibility enhancing measures

The objectives of the measures are to create the necessary infrastructure to enhance urban
mobility with more environmentally friendly options, improve the city environment and road
safety in Limassol and Larnaca. The investment shall also include measures to enhance the
accessibility and safe movement of pedestrians, cyclists and persons with disabilities in all
urban centres.

More specifically, the investment consists in the introduction of cycle ways, bus lanes and the
relevant ITS equipment (i.e. smart traffic light system with bus priority system), as well as the
introduction of cycle stands, bus shelters and improvement of road safety conditions at
selected junctions. It also includes the creation of Park & Ride stations and the relevant ITS
equipment as well as upgrades on existing road network in the urban centres (such as
walkways, crossings for pedestrians, cyclists and/or people with disabilities, warning systems
for the visually impaired, bicycle parking hubs, walkway ramps).

The implementation of the investment shall be completed by 31 March 2026.

                         Investment 2 (C2.2I2): Creation of electro mobility infrastructure

The objectives of the measures are to create the necessary infrastructure to facilitate the
transition to electro-mobility and to contribute to the deployment of charging points.

The investment is composed of three sub-measures: (i) the installation of publicly accessible
EV fast charging stations; (ii) a grant scheme for the installation of publicly accessible
charging points on the premises of businesses and local authorities; and (iii) a grant scheme
for charging EV from Renewable Energy Sources (RES).

Sub-measure 1: the installation of publicly accessible fast charging stations for EV

The investment consists in the installation of 10 fast charging stations as a demonstration
project for the promotion of electro-mobility. It shall provide access to fast recharging
infrastructure for EVs and therefore it is expected to contribute to removing consumer
inhibitions concerning EV autonomy. The 10 fast charging stations shall be placed in publicly
accessible areas such as hospitals, large publicly accessible parking places or outside public
services buildings (such as Ministries or Courts).

Sub-measure 2: a grant scheme for the installation of publicly accessible charging
points in the premises of businesses and local authorities

The scheme shall promote the installation of charging points in publicly accessible areas
owned by businesses or local authorities.

Sub-measure 3: a grant scheme for charging EVs from RES

The scheme shall provide financial incentives to promote the development of the necessary
infrastructure for electro-mobility especially through the charging of EVs from RES. The
grant scheme shall include the installation of photovoltaic systems and charging equipment in

34

dwellings for the charging of electric private vehicles and the financing of local/public
authorities for the construction of public charging points for EVs. The electricity for the
public charging points is expected to be generated in large part from RES.

The implementation of the investment shall be completed by 31 December 2025.

Investment 3 (C2.2I3): Promote widespread use of Electric Vehicles (EVs)

The objective of the measure is to promote the purchase of EVs, LEVs (i.e. a car emitting less
than 50 g/km of CO2), electric bicycles and public or non-motorised modes of transport (such
as bus, bicycle), while simultaneously gradually removing older polluting vehicles from
circulation. The investment is expected to complement Reform 3 (Progressively phase out the
most polluting vehicles, especially in polluted areas).

The investment is composed of three sub-measures: (i) kick-start the transition to electromobility in the government sector; (ii) a support scheme for the purchase of EV; and (iii) a
scrapping scheme for the most polluting vehicles combined with incentives for non/low
emission mobility options.

Sub-measure 1: kick-start the transition to electro-mobility in the government sector

The investment includes measures aiming to kick-start the gradual replacement of government
conventional vehicle fleet with electric vehicles and promote the transition to electromobility. It shall include the purchase of 100 electric vehicles for the needs of the general
government and the installation of the relevant charging points on government premises. In
addition, the Department of Postal Services shall replace its whole motorcycle fleet with
electric motorcycles.

This is expected to serve as a demonstration project for the promotion of electro-mobility to
the wider public.

Sub-measure 2: a support scheme for the purchase of EVs

The scheme shall provide incentives, by means of grant, for the purchase and registration of
EVs and the purchase of electric bicycles. It is directly linked to Reform 3, “Progressively
phase out the most polluting vehicles, especially in polluted urban areas”, as a parallel,
supportive and complementary measure.

Sub-measure 3: a scrapping scheme for the most polluting vehicles combined with
incentives for non/low emission mobility options

The scheme shall incentivise motorists to give up older and more pollutant vehicles in
exchange for alternative mobility options, such as the purchase of a LEV or of an electric
bicycle and/or free annual bus tickets. The removal of older vehicles is expected to contribute
to the reduction of greenhouse gas (GHG) emission from transport, as well as to the
mitigation of its impact on air, water, soil and noise pollution. The scrapped vehicles shall be
recycled, by licensed recyclers. Priority shall be given to the oldest vehicles to be scrapped.

The implementation of the investment shall be completed by 31 December 2025.

35

**-**
**C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone /**<br>**Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~52~~<br>|~~C2.2R1~~<br>Establishment of<br>an Intelligent<br>Transport<br>System using<br>Digital Twin<br>technologies<br>|~~Target~~<br>|~~Delivery and~~<br>installation of at<br>least 150 sensors<br>|~~- ~~<br>|~~Number~~<br>|~~0 ~~<br>|~~150~~<br>|~~Q1~~<br>|~~2024~~<br>|~~Delivery, installation and connection to the~~<br>National Access Point of at least 150 traffic<br>sensors to digitalise the networks and support the<br>development of an Intelligent Transportation<br>System.<br>|
|~~53~~<br>|~~C2.2R1~~<br>Establishment of<br>an Intelligent<br>Transport<br>System using<br>Digital Twin<br>technologies<br>|~~Target~~<br>|~~Delivery and~~<br>installation of a<br>total of 300<br>sensors<br>|~~- ~~<br>|~~Number~~<br>|~~150~~<br>|~~300~~<br>|~~Q4~~<br>|~~2025~~<br>|~~Delivery, installation and connection to the~~<br>National Access Point of a total of 300 traffic<br>sensors to digitalise the networks and support the<br>development of an Intelligent Transportation<br>System.<br>|
|~~54~~|~~C2.2R2~~<br>Provide the<br>regulatory<br>framework for<br>an interoperable<br>and effective<br>electric vehicle<br>(EV) recharging<br>infrastructure<br>and an efficient<br>EV recharging<br>market|~~Milestone~~|~~Entry into force~~<br>of legislation<br>related to electric<br>vehicle charging<br>points|~~Provision in~~<br>the law<br>indicating<br>the entry<br>into force of<br>the<br>legislation|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2024~~|~~Entry into force of legislation regarding electric~~<br>vehicle (EV) recharging infrastructure and an<br>efficient EV recharging market.<br>The regulatory framework shall promote: (1) a<br>mechanism for implementation and monitoring of<br>the recharging market of electric vehicles; and (2)<br>a coordinated analysis of data allowing for<br>effective network monitoring as well as for<br>ensuring compliance with national and EU<br>legislation.|
|55|C2.2R3<br>Progressively|Milestone|Entry into force<br>of the|Provision in<br>the|-|-|-|Q4|2023|Entry into force of legislative/administrative acts<br>regarding the exclusion of polluting vehicles from|

36

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||phase out the<br>most polluting<br>vehicles,<br>especially in<br>polluted urban<br>areas||legislative/admin<br>istrative acts<br>related to the<br>phasing out of<br>the most<br>polluting<br>vehicles|legislative/a<br>dministrativ<br>e acts<br>indicating<br>the entry<br>into force of<br>the<br>legislation||||||key areas/operations.<br>The legislative/administrative acts shall create the<br>legal basis to enforce the adoption of restrictive<br>measures related to the circulation of motor<br>vehicles, with the aim to progressively phase out<br>the most polluting vehicles.|
|56<br>|C2.2R3<br>Progressively<br>phase out the<br>most polluting<br>vehicles,<br>especially in<br>polluted urban<br>areas<br>|Milestone<br>|Implementation<br>of at least two<br>measures aiming<br>at the exclusion<br>of polluting<br>vehicles<br>|Implementat<br>ion of two<br>measures<br>|- <br>|- <br>|- <br>|Q4<br>|2025<br>|At least two measures are effective aiming at the<br>exclusion of polluting vehicles from key<br>areas/operations, such as no-emission zones,<br>applying levies for the circulation of vehicles in<br>certain areas, applying compulsory measures for<br>use of electric vehicles in certain transport<br>operations, or equivalent measures.<br>|
|~~57~~|~~C2.2I1~~<br>Implementation<br>of Sustainable<br>Urban Mobility<br>Projects (SUMP)<br>and accessibility<br>enhancing<br>measures|~~Milestone~~|~~Contracts~~<br>signature for the<br>construction<br>work of<br>sustainable<br>transport<br>infrastructure<br>and ancillary<br>installations|~~Signed~~<br>contracts|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2024~~|~~Signature of contracts for (1) the construction of~~<br>cycle ways, bus lanes and park & ride stations of<br>the Sustainable Urban Mobility Projects (SUMP)<br>and (2) the provision of ancillary installations<br>related to sustainable transport, including bicycle-<br>parking facilities and crossings for pedestrians,<br>cyclists and/or people with disabilities.|
|58|C2.2I1<br>Implementation<br>of Sustainable<br>Urban Mobility<br>Projects (SUMP)|Target|Completion of<br>construction<br>work for at least<br>62km of<br>sustainable|-|Number|0|62|Q1|2026|Completion of construction work for at least 62km<br>of sustainable transport routes, including at least<br>40km of cycle ways, at least 14km of bus lanes<br>and at least 8km of walkways.|

37

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||and accessibility<br>enhancing<br>measures<br>||transport routes<br>||||||||
|~~59~~|~~C2.2I1~~<br>Implementation<br>of Sustainable<br>Urban Mobility<br>Projects (SUMP)<br>and accessibility<br>enhancing<br>measures|~~Target~~|~~Completion of~~<br>construction<br>work for at least<br>645 ancillary<br>installations<br>related to<br>sustainable<br>transport|~~- ~~|~~Number~~|~~0 ~~|~~645~~|~~Q1~~|~~2026~~|~~Completion of construction work for at least 645~~<br>ancillary installations related to sustainable<br>transport, including at least 5 park & ride stations,<br>at least 40 crossings, at least 300 ramps, at least<br>300 bicycle-parking hubs.|
|60|C2.2I2<br>Creation of<br>electro-mobility<br>infrastructure|Target|Installation of at<br>least 330<br>charging points,<br>due to the<br>support granted|-|Number|0|330|Q4|2023|Due to the support granted by the support scheme,<br>at least 330 charging points have been purchased<br>and installed in public buildings, local authorities,<br>small and medium-sized enterprises (SMEs)<br>and/or private households.|
|61|C2.2I2<br>Creation of<br>electro-mobility<br>infrastructure|Target|Installation of at<br>least 1 200<br>charging points,<br>due to the<br>support granted|-|Number|330|1 200|Q4|2025|Due to the support granted by the support scheme,<br>at least 1 200 charging points (such as normal,<br>double, fast charging and photovoltaic charging)<br>have been purchased and installed in public<br>buildings, local authorities, small and medium-<br>sized enterprises (SMEs) and/or private<br>households.|
|62|C2.2I3<br>Promote<br>widespread use<br>of Electric<br>Vehicles (EVs)|Target|Purchase of<br>electric vehicles,<br>electric bicycles<br>(at least 2 050),<br>due to the<br>support granted|-|Number|0|2 050|Q4|2023|Due to the support granted by the support scheme,<br>at least 2 050 electric vehicles of categories M1,<br>M2-3, N, L1e-L7e and bicycles have been<br>purchased.|
|63|C2.2I3|Target|Purchase of|-|Number|2 050|5 750|Q4|2025|Due to the support granted by the support scheme,|

38

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Promote<br>widespread use<br>of Electric<br>Vehicles (EVs)||electric vehicles,<br>electric bicycles<br>(at least 5 750),<br>due to the<br>support granted|||||||at least 5 750 electric vehicles of categories M1,<br>M2-3, N, L1e-L7e and bicycles have been<br>purchased.|
|64<br>|C2.2I3<br>Promote<br>widespread use<br>of Electric<br>Vehicles (EVs)<br>|Target<br>|Scrapping of<br>high emission<br>vehicles, due to<br>the support<br>granted<br>|- <br>|Number<br>|0 <br>|1 000<br>|Q4<br>|2023<br>|Due to the support granted by the support scheme,<br>at least 1 000 high emission vehicles have been<br>scrapped and replaced by electric bicycles, annual<br>bus tickets and no- or low-emission or vehicles<br>(below 50g CO2/km).<br>|
|~~65~~|~~C2.2I3~~<br>Promote<br>widespread use<br>of Electric<br>Vehicles (EVs)|~~Target~~|~~Scrapping of~~<br>high emission<br>vehicles, due to<br>the support<br>granted|~~- ~~|~~Number~~|~~1 000~~|~~3 150~~|~~Q4~~|~~2025~~|~~Due to the support granted by the support scheme,~~<br>at least 3 150 (up to 3 500) high emission vehicles<br>scrapped and replaced by electric bicycles, annual<br>bus ticket(s) and low emission vehicles (below<br>50g CO2/km).|

39

**D.** **COMPONENT** **2.3:** **S** **MART AND** **S** **USTAINABLE** **W** **ATER** **M** **ANAGEMENT**

This component of the Cypriot recovery and resilience plan addresses inefficiencies in
water management. The objectives of this component are to ensure adequate and
uninterrupted supply of good quality drinking water, maximising the infrastructure for
sewerage collection systems, sewerage treatment and reuse of treated effluent in
agriculture; reducing water loss, non-revenue water and groundwater abstraction,
improving anti-flood infrastructure, improving operational efficiency of the services being
provided to the consumers through technological advances and establishing transparency in
financial transactions.

The component addresses the Country Specific Recommendation on water management
(Country-Specific Recommendation 3 of 2020 and Country-Specific Recommendation 4 of
2019).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into
account the description of the measures and the mitigating steps set out in the recovery and
resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**D.1. Description of the reforms and investments for non** **repayable financial**
**support**

Reform 1 (C2.3R1): Water Resource Management Reform

The objective of the measure is to define actions addressing structural weaknesses in the
water resource management in Cyprus and improving its efficiency and sustainability.

The reform consists of the establishment of a high-level Working Party (the “Working
Party”) led by the Ministry of Agriculture, Rural Development and Environment with
participants from the Ministry of Interior, Ministry of Finance, Directorate General for
European Programmes, Coordination and Development and all Water and Sewerage
Boards as well as Local Administration coordinative bodies to represent all stakeholders in
national water management. The Working Party shall serve as the body for cooperation
between the various water management authorities and as a coordination and monitoring
body for the implementation of the investments and actions to be proposed. The Working
Party shall propose an action plan with the necessary regulatory and adaptation measures
to be implemented within the next 10 to 15 years. The objectives of the suggested action
plan shall be (i) to increase operational efficiency through mergers of District Water &
Sewerage Boards, (ii) to reduce non-revenue water, (iii) to improve water use, and (iv) to
enhance the safety and sustainable operation of the infrastructures of the Water
Development Department. The Working Party shall coordinate and monitor the
implementation of the action plan and shall provide the necessary technical assistance to
the relevant water management authorities for carrying out the reform measures as well as
the investments included in the component.

The implementation of the reform shall be completed by 30 June 2025.

‑
Investment 1 (C2.3I1): Choirokitia Famagusta Conveyor Replacement

The objectives of the measure are to enhance water supply security through an improved
conveyor infrastructure with increased capacity of the duct between key water sources
(such as water treatment plants) and consumption areas. The investment shall also
contribute to minimising water losses and the occurrence of failures, improving water

40

quality by mixing desalinated and refined water before it reaches the final consumers, and
achieving energy savings through reduced water pumping.

The measure consists of the construction of a replacement of the existing water conveyor.
The project shall include conducting topographical studies and environmental impact
assessments. Following the aforementioned preliminary steps and the issuance of the
necessary permits, the Water Development Department shall assign the construction works
to a contractor who shall be selected via public procurement procedures to carry out the
works.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C2.3I2): Water Treatment Plants: upgrade for water quality improvement

The objectives of the measure are to improve water quality, reduce energy consumption
and the cost of drinking water production by limiting the need for water desalination, as
well as decrease disruptions to the supply and distribution of water.

The measure consists of refurbishing the Water Treatment Plants of Limassol,
Asprokremmos, Tersefanou, Kornos and Kannaviou. This shall include replacing the
existing chlorination infrastructure for these five Water Treatment Plants, installing
activated carbon polishing units for Limassol, Asprokremmos and Tersefanou Water
Treatment Plants, extending the capacity of Asprokremmos Water Treatment Plant by 10
000 m3/day and upgrading the monitoring and control system as well as its automation
system.

The implementation of the investment shall be completed by 31 December 2025.

Investment 3 (C2.3I3): Integrated Monitoring and Control Management System for the
Water Development Department’s infrastructure

The objective of the measure is to improve the water resource management efficiency and
increase the operational capacity of the competent authorities. The measure aims to reduce
the risk of business disruption by securing the various systems against cyber- and physical
attacks, to reduce energy consumption and GHG emissions by increasing efficiency, to
reduce non-revenue water in irrigation by improving infrastructure and monitoring
capacity and to reduce the high-impact risk of contamination events and the impact of
prolonged drought events by closely managing water resources and forecasting.

The measure consists of creating an integrated platform that shall be composed of a
number of subsystems where each of them shall address key challenges, including water
quality, flood management, water demand management and water allocation for irrigation
purposes, energy efficiency as well as cyber- and physical security. The implementation of
the measures shall include: (i) the installation of 500 hydraulic and quality sensors in all
the lakes, reservoirs, rivers, as well as in the water transport network, up to the level of the
communities; (ii) the installation of energy meters to monitor the energy consumption of
pumping stations that shall be transmitted and stored in a database; (iii) a software
platform linked with intelligent analytics and methods to help the decision-making process
in relation to the production of water from different sources (desalination and treatment of
water from reservoirs) taking into account security of water supply, cost of water
production across different systems and drought forecasts. In addition, the measure shall
address cyber- and physical security challenges through tools for enhancing the protection
of ICT systems. The project shall be implemented by the following sequence of actions:
detailed requirement analysis with the help of specialised consultants; procurement and

41

installation of equipment; and implementation, assessment and commissioning of the IT
sub-systems.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C2.3I4): Smart Water and Sewerage Networks Management

The objective of the measure is to enhance operational and energy efficiency through the
digitalisation of Larnaca Sewerage and Drainage Board, Larnaca Water Board and Water
Board of Limassol, notably the upgrading of the organisations’ operation and services and
integrating the IT systems currently used into a unified system to operate under cloud
services.

The measure consists of a series of smart and digital upgrades in each of the three
organisations: (i) The Larnaca Sewerage and Drainage Board shall conduct a technoeconomic study to map its energy footprint and identify potential for reductions in energy
consumption, such as through solar and biogas solutions. It shall also install smart meters,
sensors and systems for recording the hydrological balance to enable the timely detection
of damaged pipelines and the monitoring of pathogens. (ii) The Larnaca Water Board shall
install water quality and pressure sensors in its distribution networks and is thus expected
to replace at least 50% of its conventional consumer meters with smart meters. Moreover,
it shall develop a Digital Twin decision support tool and a data bank. These systems shall
draw information from the installed sensors, smart water meters and existing systems to be
combined to accurately estimate water flow, pressure and quality of water for the timely
detection of events. (iii) The Water Board of Limassol shall replace conventional consumer
meters with automated smart meters and install pressure and quality sensors for
infrastructure monitoring and development of innovative customer services, such as early
warning in the case of a leakage. Furthermore, it is expected to design a customised
software integrating all its operations and to support data-driven decision making.

The implementation of the investment shall be completed by 30 June 2026.

Investment 5 (C2.3I5): Anti-flood and water collection measures

The objective of the measure is to mitigate the negative effects on human health, the
environment, cultural sites and income from flooding events through managing flood risk.
A specific objective resulting from the actions to be implemented is the reduction of
erosion from extreme runoffs, both in agricultural and urban areas.

The measure consists of a series of anti-flood and water collection measures. The works
shall concentrate in three areas, namely Livadia, Kladeri and the centre of Nicosia, as
follows: (i) In Livadia, the Municipality of Larnaca shall upgrade and embellish flood
channels, through improvements to the riverbed and riverbanks. (ii) In Kladeri area, the
Municipality of Ypsonas shall construct a complete rainwater collection network of 4 600
meters in length to cover the area ending in 35 absorption pits. (iii) In Nicosia, the
Municipality of Nicosia has already selected eight areas where a complete sewer system
shall be constructed. The works shall include the reconstruction of streets and pavements
and the expansion of the rainwater network.

The implementation of the investment shall be completed by 31 December 2025.

42

Investment 6 (C2.3I6): Enhance water security for Nicosia and Larnaca regions

The objective of the measure is to increase the water adequacy for the needs of Nicosia and
Larnaca Water Boards.

The measure foresees the construction of three new generation Glass Lined Steel (GLS)
water reservoirs of 26 000 m [3] in total in Nicosia Region and the construction of a 10 000
m [3] water reservoir in a specific designated area at Klavdia, Larnaca.

The implementation of the investment shall be completed by 30 June 2025.

Investment 7 (C2.3I7): Eastern Nicosia infrastructure for the re-use of treated wastewater

The objective of the measure is to increase the storage capacity of a Wastewater Treatment
Plant in the area Vathia Gonia to enable the utilisation of the whole treated wastewater
amount. This shall be achieved through the construction of the necessary infrastructure to
utilise the water immediately, avoiding any discharge and satisfying the existing irrigation
needs of farmers connected to the irrigation network.

The projects shall be implemented by the Water Development Department and involves
also the pumping, conveyance, distributing and storage of treated effluent from the Vathia
Gonia Wastewater Treatment Plant located in eastern Nicosia. The treated water shall
eventually be used for irrigation purposes in specific agricultural regions situated in the
broader eastern Nicosia area under the control of the Republic of Cyprus, thus avoiding
any discharge.

The implementation of the investment shall be completed by 30 June 2026.

Investment 8 (C2.3I8) Protection of the marine ecosystem from hazards through oil spills

The objective of the measure is to protect marine ecosystems through an upgrade of the
operational capacity of the Department of Fisheries and Marine Research to respond
promptly, adequately and effectively to incidents from oil pollution to marine pollution.

The measure consists of the purchase of three detergent vessels with the possibility of
autonomous oil recovery companies, two of which shall operate close to the shoreline and
the larger one on the high seas, as well as the purchase of two autonomous oil dispersant
air spraying units.

The implementation of the investment shall be completed by 31 December 2025.

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**-**
**D.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~66~~|~~C2.3R1~~<br>Water<br>Resource<br>Management<br>Reform|~~Milestone~~|~~Adoption of~~<br>an action<br>plan on<br>water<br>resource<br>management|~~Publication of the~~<br>action plan on the<br>website of the<br>Ministry of<br>Agriculture, Rural<br>Development and<br>Environment|~~ -~~|~~ -~~|~~ -~~|~~Q2~~|~~2025~~|~~Adoption of an action plan on water resource~~<br>management with regulatory and adaptation<br>measures. The objectives of the suggested action<br>plan shall be: (1) to assist the merging of District<br>Water & Sewerage Boards, (2) to reduce Non-<br>Revenue Water (3) to improve water use and (4)<br>to enhance the safety and sustainable operation of<br>Water Development Department's infrastructures.|
|67|C2.3I1<br>Choirokitia‑<br>Famagusta<br>Conveyor<br>Replacement|Milestone|Preparation<br>of tender<br>documents<br>and issue call<br>for tenders|Published call for<br>tender for the<br>conveyor<br>replacement<br>works|-|-|-|Q3|2023|Preparation of tender documents and issue of call<br>for tenders following the completion of detailed<br>design of the Choirokitia-Famagusta Conveyor<br>replacement, including bill of quantities by<br>quantity surveyor, topography, permits, other<br>technical and environmental studies and licencing.<br>Completed environmental impact assessment on<br>the Environment from Projects Law (127(I)/2018)<br>/ Public Procurement procedures (Law<br>73(I)/2016).|
|68|C2.3I1<br>Choirokitia‑<br>Famagusta<br>Conveyor<br>Replacement|Target|Installation<br>of new<br>pipeline with<br>total length<br>of 20km||Number|0|20|Q2|2026|Completion of the construction and installation of<br>a new pipeline with total length of 20km and<br>operation of the equipment. A qualified<br>engineering bureau shall verify the executed work.|
|69|C2.3I2<br>Water<br>Treatment<br>Plants:<br>upgrade for|Milestone|Completion<br>of the works<br>for the<br>installation<br>of activated|Issued certificates<br>by the project<br>engineer for each<br>of the three<br>contracts|-|-|-|Q1|2024|Completion of the works for installation of<br>activated carbon polishing units of<br>a) 30 000 m3/day capacity for Tersefanou Water<br>Treatment Plant;<br>b) 30 000 m3/day capacity for Asprokremmos|

44

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||water quality<br>improvement||carbon<br>polishing<br>units in<br>Tersefanou,<br>Asprokremm<br>os and<br>Limassol<br>Water<br>Treatment<br>Plants|||||||Water Treatment Plant; and<br>c) 20 000 m3/day capacity for Limassol Water<br>Treatment Plant.|
|70<br>|C2.3I2<br>Water<br>Treatment<br>Plants:<br>upgrade for<br>water quality<br>improvement<br>|Target<br>|Completion<br>of extension<br>works and<br>automation<br>system at<br>Asprokremm<br>os Water<br>Treatment<br>Plant<br>|<br>|Number<br>|0 <br>|10<br>000<br>|Q4<br>|2025<br>|Completion of works resulting in the extension of<br>the capacity of Asprokremmos Water Treatment<br>Plant by 10 000 m3/day, including upgrading the<br>monitoring and control system and also the<br>automation system.<br>|
|~~71~~|~~C2.3I3~~<br>Integrated<br>Monitoring<br>and Control<br>Management<br>System for<br>the Water<br>Development<br>Department’<br>s <br>infrastructure|~~Milestone~~|~~Completion~~<br>of the<br>detailed<br>requirements<br>analysis and<br>system<br>design<br>document|~~Approval of~~<br>detailed<br>requirements<br>analysis and<br>system design<br>document by the<br>Steering<br>Committee of the<br>Water<br>Development<br>Department|~~ -~~|~~ -~~|~~ -~~|~~Q2~~|~~2022~~|~~The requirements analysis and system design~~<br>document shall describe all the aspects, features<br>and functionalities of the system, including:<br>quality sensors, operational sensors (such as flow,<br>level and pressure), energy meters,<br>communications devices, IT equipment (hardware,<br>software). The detailed requirements analysis and<br>system design shall determine the exact number<br>and type of equipment required for this project.|

45

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|72|C2.3I3<br>Integrated<br>Monitoring<br>and Control<br>Management<br>System for<br>the Water<br>Development<br>Department’<br>s <br>infrastructure|Target|Delivery and<br>installation<br>of at least<br>50% of the<br>equipment||% <br>Percenta<br>ge|0|50|Q1|2024|Delivery and installation of at least 50% of the<br>total number of units that are prescribed in the<br>Detailed Requirements analysis and system design<br>(quality sensors, communication devises and<br>quality meters).|
|73<br>|C2.3I3<br>Integrated<br>Monitoring<br>and Control<br>Management<br>System for<br>the Water<br>Development<br>Department’<br>s <br>infrastructure<br>|Milestone<br>|Completion<br>of a fully<br>functional<br>Integrated<br>Monitoring<br>and Control<br>Water<br>Management<br>System<br>|Water<br>Development<br>Department<br>project<br>implementation<br>team and<br>responsible<br>officer approves<br>the operation and<br>functionality of<br>the entire system<br>|-<br>|-<br>|-<br>|Q2<br>|2026<br>|Completion of the Integrated Monitoring and<br>Control Management System, which shall include<br>verification that the system is capable of detecting,<br>at an early stage, events that require immediate<br>actions from the Water Development<br>Department’spersonnel. The system shall be able<br>to respond automatically to certain events and at<br>the same time alert operators and/or the public.<br>The system shall be capable of collecting and<br>analysing a large amount of data that may be used<br>for forecasting and to aid in decision making.<br>|
|~~74~~|~~C2.3I4~~<br>Smart Water<br>and<br>Sewerage<br>Networks<br>Management|~~Target~~|~~Delivery and~~<br>installation<br>of<br>photovoltaics<br>at the<br>Larnaca<br>Wastewater<br>Treatment||~~Number~~|~~0 ~~|~~700~~|~~Q1~~|~~2023~~|~~Delivery and installation of photovoltaic~~<br>equipment at the Larnaca Wastewater Treatment<br>Plant generating power of at least 700KW.|

46

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||Plant||||||||
|75|C2.3I4<br>Smart Water<br>and<br>Sewerage<br>Networks<br>Management|Target|Delivery and<br>installation<br>of at least<br>200 quality<br>and pressure<br>sensors||Number|0|200|Q4|2024|Delivery and installation of at least 200 quality<br>and pressure sensors in the Larnaca and Limassol<br>water networks.|
|76<br>|C2.3I4<br>Smart Water<br>and<br>Sewerage<br>Networks<br>Management<br>|Target<br>|Installation<br>and<br>operation of<br>at least<br>100 000<br>smart meters<br>|<br>|Number<br>|0 <br>|100<br>000<br>|Q2<br>|2026<br>|At least 100 000 smart meters in operation<br>(delivering consumption readings) and a complete<br>smart water metering system, monitoring system,<br>as well as installed and operational control and<br>support systems in Larnaca and Limassol.<br>|
|~~77~~|~~C2.3I5~~<br>Anti-flood<br>and water<br>collection<br>measures|~~Milestone~~|~~Completion~~<br>of<br>construction<br>works of<br>drainage<br>network and<br>reconstructio<br>n of streets<br>and<br>pavements in<br>areas of<br>Nicosia|~~Project~~<br>management team<br>certifies the<br>completion of the<br>construction|~~ -~~|~~ -~~|~~ -~~|~~Q4~~|~~2022~~|~~Completion of construction of drainage network~~<br>and reconstruction of streets and pavements in<br>Agios Antonios, Old city, Likavitos and Agioi<br>Omologites areas of Nicosia with a total length of<br>approx. 6.5km.|
|78|C2.3I5<br>Anti-flood<br>and water<br>collection<br>measures|Milestone|Completion<br>of<br>construction<br>works for the<br>rainwater|Project<br>management team<br>certifies the<br>completion of the<br>construction|-|-|-|Q2|2024|Completion of construction of the rainwater<br>collection and recycling system covering a total<br>water collection system area of 4,5km in Kladeri<br>area.|

47

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||collection<br>and<br>recycling<br>system in<br>Kladeri area||||||||
|79|C2.3I5<br>Anti-flood<br>and water<br>collection<br>measures|Milestone|Completion<br>of<br>construction<br>works for the<br>flood<br>channel in<br>Livadia|Project<br>management team<br>certifies the<br>completion of the<br>construction||||Q4|2025|Completion of construction works for the flood<br>channel with a total capacity of approx. 30 000m3<br>in Livadia.|
|80|C2.3I6<br>Enhance<br>water<br>security for<br>Nicosia and<br>Larnaca<br>regions|Target|Completion<br>of<br>construction<br>of two glass<br>lined steel<br>reservoirs||Number|0|16<br>000|Q1|2023|Completion of construction of two glass lined<br>steel reservoirs of a total capacity of 16 000m3.|
|81|C2.3I6<br>Enhance<br>water<br>security for<br>Nicosia and<br>Larnaca<br>regions|Target|Completion<br>of<br>construction<br>of three glass<br>lined steel<br>reservoirs<br>and 1<br>concrete<br>water<br>reservoir||Number|16 000|36<br>000|Q2|2025|Completion of construction of three glass lined<br>steel reservoirs and one concrete water reservoir<br>of a total capacity of 36 000m³.|
|82|C2.3I7|Milestone|Signing of|Contracts signed|-|-|-|Q4|2022|Signing of the contracts for the construction of a|

48

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Eastern<br>Nicosia<br>infrastructure<br>for the re-use<br>of treated<br>wastewater<br>||the contracts<br>for the<br>construction<br>of a winter<br>storage<br>reservoir<br>|by authorising<br>officer <br> <br>||||||winter storage reservoir with capacity of at least<br>1 400 000 m³, pipelines and ancillary works.<br>|
|~~83~~<br>|~~C2.3I7~~<br>Eastern<br>Nicosia<br>infrastructure<br>for the re-use<br>of treated<br>wastewater<br>|~~Milestone~~<br>|~~Completion~~<br>and delivery<br>of a fully<br>operational<br>wastewater<br>treatment<br>infrastructure<br>|~~The project~~<br>engineer issues<br>taking over<br>certificate for the<br>completion of<br>construction,<br>which is verified<br>by the project<br>implementation<br>team<br>|~~ -~~<br>|~~ -~~<br>|~~ -~~<br>|~~Q2~~<br>|~~2026~~<br>|~~Wastewater treatment infrastructure including a~~<br>winter storage reservoir with capacity of at least<br>1 400 000m³ pipelines and ancillary works<br>completed, delivered and fully operational.<br>|
|~~84~~|~~C2.3I8~~<br>Protection of<br>the marine<br>ecosystem<br>from hazards<br>through oil<br>spills|~~Milestone~~|~~Delivery,~~<br>quality<br>inspection to<br>verify their<br>operational<br>effectiveness<br>and<br>acceptance<br>of three<br>vessels and<br>two aerial<br>spraying<br>systems|~~Expert’s reporting~~<br>and issuance of<br>quality certificate<br>of the operational<br>effectiveness and<br>acceptance of<br>vessels and aerial<br>spraying systems|~~ -~~|~~ -~~|~~ -~~|~~Q1~~|~~2023~~|~~Delivery, quality inspection to verify their~~<br>operational effectiveness and acceptance of three<br>vessels (one vessel of 25m in length<br>approximately to operate within the Cypriot<br>Exclusive Economic Zone and two vessels of 8-<br>11m in length approximately to operate within<br>coastal waters and two aerial spraying systems.|

49

**E.** **COMPONENT** **3.1:** **N** **EW GROWTH MODEL AND DIVERSIFICATION OF THE ECONOMY**

The component addresses the challenges of the Cypriot economy with regards to
competitiveness, productivity and investment, as well as overreliance on certain economic
sectors, such as tourism.

The objective of the component is to help the economy to transit to a new economic growth
model (Sustainable Business and Trade Centre of Europe) by addressing sectoral challenges
as follows:

Primary Sector: the objective is to develop a competitive agriculture sector primarily through
agri-tech and strong collaboration with business, higher-education institutions and research
centres to excel.

Secondary Sector: the objective is to develop a competitive light manufacturing sector that
includes a focus on areas such as green-tech and agri-tech.

Sustainable Tourism: the objective is to develop a strong agri-tourism and sustainable
hospitality infrastructure and attracting health & wellness tourists through competitive and
reputable healthcare.

Circular economy (with emphasis on waste management): the objective is to help move
towards a circular economy by making better use of raw materials, reducing waste, raising
awareness for sustainable development and switching to renewable energy in order to mitigate
the climate crisis, protect social well-being and build a resilient economy. The component
contributes to addressing the country specific recommendation related to “focus investment
on the green and digital transition” and “on waste and water management” (Country-Specific
Recommendation 3 of 2020), “focus investment-related economic policy on sustainable
transport, environment” and “on environment, in particular waste and water management”
(Country-Specific Recommendation 4 of 2019)

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**E.1.** **Description of the reforms and investments for non-repayable financial support**

**Sub-Component 3.1.1 Resilient and competitive primary sector**

Reform 1 (C3.1R1): Move agricultural practices from the 20th century to the 21st century by
investing in a national centre for excellence in agri-tech

The objective of the reform is to address challenges in the primary sector, including low
productivity and lack of technological knowledge, by establishing a centralised operating
model through strong collaboration between the Agricultural Research Institute and public
universities.

The reform shall consist in establishing Cyprus’s Agricultural Research Institute as the
country’s centre of excellence in agriculture, animal husbandry and environmental protection
and to strengthen the cooperation between the Agricultural Research Institute and universities
to develop new curricula.

The implementation of the reform shall be completed by 30 June 2023.

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                -                Reform 2 (C3.1R2): On line, cloud based platform for improving the trade and information
symmetry in the fresh produce supply chain

The objectives of the reform are to address long-standing drawbacks of the fresh produce
supply chain, especially regarding traceability, market price distortions and the information
asymmetry, which weakens producers’ position in the market.

The reform shall consist of a new law on unfair practices in transactions in the local fresh
produce market and the operation of a platform for recording transactions in the local fresh
produce market.

The implementation of the reform shall be completed by 30 June 2026.

Reform 3 (C3.1R3): Genetic improvement of the Cyprus sheep and goat population

The objective of the reform is to enhance the productivity and sustainability of the primary
sector through the promotion of agro-technology, advanced reproduction and genomic
improvement of sheep and goats to optimise the production of dairy products.

The reform shall consist of support to the sheep and goat farmers to upgrade their record
keeping on farm, their production processes, product quality evaluation efforts and
participation in the nationally funded AGRICYGEN project, which shall provide them with
advanced knowledge and guidance on the genetic merit of their animals. This shall allow
farmers to make informed decisions on animal reproduction to improve productivity,
primarily in terms of milk production.

The implementation of the reform shall be completed by 30 June 2026.

Investment 1 ( C3.1I1): Construction of a collaborative marine aquaculture infrastructure (port
and land facilities) in the Pentakomo coastal area

The objective of the measure is to cover the gap of not having sufficient port and land
infrastructure for the daily needs of this activity, by covering existing as well as future needs
of more than 70% of the marine aquaculture units operating in Cyprus, aiming at the smooth
operation of this sector. The measure aims at maintaining the aquaculture’s viability, improve
its competitiveness and provide for its future further sustainable development and expansion,
strengthening the resilience, competitiveness and contribution of the primary sector to
sustainable development of the Cypriot economy.

The investment shall consist in the construction of a collaborative infrastructure for marine
aquaculture in the Pentakomo area, which shall be specifically designed to accommodate the
needs of marine offshore aquaculture activities (safe service vessels docking, maintenance
areas of equipment, storage areas, loading and unloading areas and fuelling station). It shall
cover the construction of a small port with the required and appropriate land facilities that
shall have the capacity to serve seven aquaculture units with about 40 service vessels of
various sizes.

The implementation of the investment shall be completed by 31 March 2026.

Investment 2 (C3.1I2): Enhancing the existing isotopic databases of Cypriot local traditional
food/drinks, by developing a Block Chain platform, to ensure their identity

The objective of the measure is to develop a mechanism and a fit for purpose verification
methodology for the authentication of Cypriot products as well as of European food in
general, by using stable isotopic databases, thus utilising research and technology. In

51

particular, the measure shall develop a verification methodology for at least three areas of
authenticity (dairy products, honey and spirits) that are significantly affected by adulteration
and fraud.

The investment shall consist in the establishment of a network of expertise that shall inform
regulatory and production stakeholders about food authenticity issues and problems, existing
datasets, available methodology and secure sharing of data and information. Also, it shall
develop fit for purpose verification methodology for at least three areas of authenticity (dairy
products, honey and spirits) that are significantly affected by adulteration and fraud.
Moreover, it shall promote knowledge transfer of “IsoDataBase” outputs to the food industry,
regulatory, enforcement, research and consumer stakeholders and shall build a configurable
web and mobile Enterprise Resource Planning that may convert any paper-based supply chain
to digital.

The implementation of the investment shall be completed by 31 March 2025.

Investment 3 (C3.1I3): Upskill the existing farming community and professionalise future
labour force by investing in human capital

The objective of the measure is the upskilling of the farming community, through knowledge
transfer and the promotion of innovation. In this way, it aims at fostering a more competitive
agricultural sector with higher potential, through capacity building and knowledge transfer.

The investment shall consist in the granting of ten scholarships in the agricultural sector, of
EUR 10 000 each, for supporting the development of the future labour force in the sector. It
shall also support transfer of knowledge and innovation within the existing labour force,
through the use of the Agricultural Knowledge and Innovation System with links to academia,
bridging the gap between practical application on the one hand and knowledge, science,
experience and research on the other.

The implementation of the investment shall be completed by 31 December 2022.

**Sub-Component 3.1.2 Innovative and competitive secondary sector**

Investment 4 (C3.1I4): Initiating the setup of the first Eco-Industrial Science Park

The objective of the measure is to set the framework to encourage the growth of greenfield
direct investment and host a cluster of light manufacturing entities that focus on renewables
(emphasis on solar), agri-tech solutions, and ICT.

The investment shall consist in the approval of an action plan by the Council of Ministers,
based on an underlying study, for the establishment of the Eco-Industrial Science Park. The
park shall be a cluster of businesses specialising in manufacturing tech equipment focusing on
renewable energy (in particular solar), agri-tech solutions and ICT.

The implementation of the investment shall be completed by 30 September 2023.

Investment 5 (C3.1I5): Creation of a National Commercial Identity and promotion of the
traditional product “halloumi”

The objective of the measure is to establish a brand name for the Cypriot products in order to
promote their export.

The investment shall consist in the development of action plans based on two studies: (a) one
on the creation of a National Commercial Identity “Made in Cyprus” (branding) focusing on

52

the quality and structural characteristics of Cypriot products and services combined with
elements of the tradition and history of the island, and (b) a study for implementing a strategy
for halloumi cheese in order to increase its distinctiveness as an authentic Cyprus product and
designing a promotional and awareness campaign.

The implementation of the investment shall be completed by 31 March 2022.

Investment 6 (C3.1I6): Scheme for modernisation and digitalisation of enterprises engaged in
manufacturing and trading of agricultural products

The objective of the measure is to strengthen the resilience of the agricultural sector, promote
diversification of economic activity and ultimately accelerate sustainable economic growth.
The measure aims to incentivise investments in new businesses or in the technological
advancement of existing businesses, thus helping them bring to the market improved
products, increase productivity and strengthen their growth prospects, create local jobs and
provide the base for sustained growth of the overall economy.

The investment shall consist in the use of a grant scheme that shall provide aid to existing and
newly established enterprises, especially SMEs, engaged in the processing, marketing and
development of agricultural products covered by Annex I of the Treaty on the Functioning of
the European Union, except wine, wine vinegar and activities related to fisheries and
aquaculture. The scheme shall assist enterprises to finance investments in tangible or
intangible assets to modernise and improve their production facilities, expand and increase
their productive capacity, introduce new technologies and procedures and develop new or
higher-quality agricultural products. The funding shall also help businesses to improve their
digital capabilities, thus helping them improve their processes.

The implementation of the investment shall be completed by 31 March 2026.

Investment 7 (C3.1I7): Scheme for the enhancement of large enterprises competitiveness in
the manufacturing sector

The objective of the measure is to help large enterprises with capital expenditures for
modernisation efforts that are expected to enable these enterprises to grow, become more
competitive, create employment and thus contribute to economic development of the country.

The investment shall consist in the grant scheme of up to EUR 7 000 000, to develop and
promote existing and new large enterprises in the manufacturing sector. Each enterprise shall
receive a maximum of EUR 750 000. The grant scheme shall provide incentives to the
enterprises to maintain their activities and employment.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities [5] : (i) activities related to fossil
fuels, including downstream use; (ii) activities under the EU Emission Trading System (ETS)
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological
treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 30 June 2026.

5 All footnotes set out in the text on measure C2.1I4 are also applicable to this measure.

53

**Sub-component 3.1.3 Sustainable, high value-added tourism sector**

Investment 8 (C3.1I8): Enhancing the added value of the tourism sector with emphasis on the
countryside, mountainous and remote areas

The objectives of the investment are to enrich the tourism product, attract new markets, while
reducing seasonality and improving the built environment in the countryside, mountainous
and remote areas.

The investment shall consist of grant support to three categories of businesses: (1) SMEs in
the accommodation industry, such as hotels, in the countryside, mountainous and remote areas
for renovation projects, (2) traditional restaurants or businesses selling traditional products,
which shall be included in the label “Taste of Cyprus”, for renovation works, and (3) SMEs in
the accommodation industry, such as hotels, to include medical and assisted living facilities.

The implementation of the investment shall be completed by 30 June 2026.

Investment 9 (C3.1I9): Promotion of circular economy in hotel establishments

The objectives of the investment are to facilitate the transition of hotels’ business model to
circular, or to develop circular products or services.

The investment consists of diagnostics, recommendations, training and coaching, and
monitoring of the implementation of recommendations leading to certification.

The implementation of the investment shall be completed by 31 March 2026.

Investment 10 (C3.1I10): Enrichment of the tourism product in rural, mountainous and remote

areas

The objective of the investment is to support the economy in rural, mountainous and remote
areas, by developing the offer of activities to visitors, such as workshops, live demonstrations
and traditional souvenirs. It aims at enhancing the diversification of the tourism sector,
creating jobs, reducing out-migration.

The investment consists of (i) a creation of an "Authentic Experience Route" of 300
kilometres, which shall pass through mountainous, rural and remote parts of the country, and
(ii) grant support to enterprises and local community boards for limited-scale restoration of
private and public buildings and mostly repurposing them in order to host micro and small
businesses in the creative and manufacturing sectors, such as artists, handcrafts and traditional
products.

The implementation of the investment shall be completed by 31 December 2025.

**Sub-component 3.1.4 Circular economy**

Reform 4 (C3.1R4): Enhancement of circular economy in the Industry

The objective of the measure is to enhance the circular economy model in the country through
the implementation of a concrete Action Plan. The Action Plan shall include a grant scheme
to enhance business investment in the circular economy, as well as actions such as (i) raising
awareness among the consumers and the business community regarding the benefits of
circular products towards the environment and about the strengths and business opportunities
that the circular economy offers, (ii) providing consulting services regarding business
diagnostics, business coaching, training of employees and preparation of a roadmap for

54

transitioning to circularity, and (iv) sharing a marketplace platform for the circular economy
to connect supply and demand of materials, scrub and waste.

The grant scheme shall be open to SMEs aiming to move into a circular operating model.
Grants may go up to EUR 317 500 for each beneficiary, covering up to 60% of the investment
cost incurred by each SME. This grant scheme shall be implemented.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities [6] : (i) activities related to fossil
fuels, including downstream use; (ii) activities under the EU Emission Trading System (ETS)
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological
treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the reform shall be completed by 30 June 2026.

Reform 5 (C3.1R5): Establishment of a Coordinating Body between central and local
government

The objective of the measure is to upscale waste management towards prevention of waste
and separate collection, thus contributing to compliance with the EU waste management
directives as well as promoting the circular economy. The reform shall provide a mechanism
to support local authorities both technically and financially, help them to liaise with the
central government, create expertise and exploit funding opportunities in the field of waste
management.

The reform consists in the establishment of a Coordinating Body between central and local
government that shall promote activities within the waste management hierarchy and the
waste management plan and support local authorities in this perspective. It shall also
participate in research programmes, support pilot programmes and conduct education and
information campaigns that aim at waste prevention and separation of waste, as well as
maintain the database of programmes and projects in the field of waste management.

The implementation of the reform shall be completed by 30 June 2025.

Investment 11 (C3.1I12): Waste management towards circular economy

The objective of the measure is to contribute effectively to upscaling efforts towards reuse as
well as recycling of bio waste and dry recyclables. The investment aims to assist the
achievement of bio waste reduction targets, increase waste prevention as the most important
way to improve resource efficiency and reduce the environmental impact of waste.

The investment consists of three constituents: (i) distribution of 50 small and medium size
composters and 2 000 home composters in rural and semi-rural communities for facilitating
the separate collection and proper treatment of bio waste, (ii) development, set-up, installation
and operation of 50 green kiosks for dry recyclables to help municipalities in remote areas to
improve their waste management schemes, and (iii) construction and operation of two Reuse
and Repair Centres in strategic locations in Cyprus that can serve all 5 regions together with
an associated network of reuse shops to improve resource efficiency and create a local green
job potential.

The implementation of the investment shall be completed by 31 December 2025.

6 All footnotes set out in the text on measure C2.1I4 are also applicable to this measure.

55

**E.2.** **Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support**

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone /**<br>**Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for milestones)**<br>|**Unit of**<br>**measure**<br>|**Base**<br>**line**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~85~~|~~C3.1R1~~<br>Move agricultural<br>practices from the<br>20th century to the<br>21st century by<br>investing in a<br>national centre for<br>excellence in agri-<br>tech|~~Milestone~~|~~Cooperation~~<br>between the<br>Agricultural<br>Research Institute<br>and public<br>universities, for<br>joint MSc and PhD<br>programmes|~~Entry into force of~~<br>signed<br>cooperation<br>agreement(s)|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2022~~|~~Entry into force of legally binding document(s)~~<br>establishing the collaboration for joint MSc and<br>PhD programmes signed between the<br>Agricultural Research Institute and public<br>universities.|
|86|C3.1R1<br>Move agricultural<br>practices from the<br>20th century to the<br>21st century by<br>investing in a<br>national centre for<br>excellence in agri-<br>tech|Milestone|New joint Masters<br>and/or PhDs in the<br>wider domain of<br>Agriculture|Media<br>announcement<br>and<br>communication<br>by competent<br>authorities|-|-|-|Q2|2023|Enrolment of students and start of new joint<br>Masters and/or PhDs in the wider domain of<br>Agriculture.|
|87|C3.1R2<br>On-line, cloud-based<br>platform for<br>improving the trade<br>and information<br>symmetry in the fresh<br>produce supply chain|Milestone|Law on unfair<br>practices in<br>transactions in the<br>local fresh produce<br>market|Provision in the<br>law indicating the<br>entry into force of<br>the new law on<br>unfair practices in<br>transactions in the<br>local fresh<br>produce market|-|-|-|Q2|2022|Entry into force of a new law which shall<br>address unfair trading practices in transactions<br>in the local fresh produce market, such as<br>unilateral and retroactive amendments to<br>contracts, last minute cancellations, payment<br>deadlines longer than 30 days, payment for<br>damaged or unsold products and other actions<br>affecting those involved in the production and<br>distribution chain of agricultural products.|
|88|C3.1R2|Milestone|Platform for|The platform|-|-|-|Q2|2024|Fully operational platform for recording|

56

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
||On-line, cloud-based<br>platform for<br>improving the trade<br>and information<br>symmetry in the fresh<br>produce supply chain<br>||recording<br>transactions in the<br>local fresh produce<br>market<br>|available on the<br>website of the<br>Agricultural<br>Research Institute<br>of the availability<br>and<br>communication<br>by competent<br>authorities<br>||||||transactions in the local fresh produce market<br>shall be available on the Agricultural Research<br>Institute website.<br>|
|~~89~~|~~C3.1R3~~<br>Genetic improvement<br>of the Cyprus sheep<br>and goat population|~~ Target~~|~~Upgrade of record~~<br>keeping in farms<br>and participation<br>of farmers in<br>AGRICYGEN<br>project|~~ -~~|~~ Number~~|~~ 0~~|~~ 40~~|~~ Q4~~|~~2023~~|~~At least 40 farmers have upgraded their record~~<br>keeping on farm, their production processes,<br>product quality evaluation efforts and<br>participate in the nationally funded<br>AGRICYGEN project.|
|90<br>|C3.1R3<br>Genetic improvement<br>of the Cyprus sheep<br>and goat population<br>|Target<br>|Adoption of<br>advanced<br>recording and<br>genomic<br>evaluation<br>processes, and<br>selection of the<br>best performing<br>animals<br>|- <br>|Number<br>|0 <br>|15<br>000<br>|Q2<br>|2026<br>|Farmers have adopted advanced recording and<br>genomic evaluation processes, and selected the<br>best performing animals based on genomic<br>analysis outputs for at least 15 000 animals.<br>|
|~~91~~|~~C3.1I1~~<br>Marine aquaculture<br>construction|~~Milestone~~|~~Construction of the~~<br>collaborative<br>marine aquaculture|~~Contract signature~~|~~- ~~|~~- ~~|~~- ~~|~~Q1~~|~~2023~~|~~Signing the contract for the construction of a~~<br>collaborative marine aquaculture infrastructure<br>(port and land facilities) that shall specifically<br>be designed for aquaculture activity.|

57

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
|92|C3.1I1<br>Marine aquaculture<br>construction|Milestone|Operational<br>collaborative<br>marine aquaculture<br>Infrastructure|Signed statement<br>from the<br>Contracting<br>Authority of the<br>delivery and<br>operation of the<br>infrastructure<br>developed|-|-|-|Q1|2026|Delivery of a fully functional / operational<br>collaborative marine aquaculture Infrastructure<br>(port and land facilities) that shall specifically<br>be designed for aquaculture activity and shall<br>cover the needs of more than 70% of the marine<br>aquaculture units operating in Cyprus.|
|93|C3.1I2<br>Enhancement of<br>isotopic database of<br>traditional Cypriot<br>products|Milestone|Liquid<br>Chromatography-<br>Isotopic Ratio<br>Mass Spectrometer<br>(LC-IRMS)<br>equipment|Signed statement<br>of the acceptance<br>of equipment to<br>the standard<br>quality and time<br>specified in the<br>tender documents<br>and the signed<br>contract|-|-|-|Q4|2021|Purchase and Install New Liquid<br>Chromatography- Isotopic Ratio Mass<br>Spectrometer (LC-IRMS) equipment for<br>isotopic characterisation.|
|94|C3.1I2<br>Enhancement of<br>isotopic database of<br>traditional Cypriot<br>products|Target|Local traditional<br>foods/ drinks<br>connected to the<br>system|-|Number|0|10|Q1|2025|Integrated Isotopic DataBases (for at least ten<br>traditional/local foods/ drinks) connected to a<br>Blockchain system.|
|95<br>|C3.1I3<br>Upskill existing and<br>future farmers<br>|Target<br>|Scholarships<br>granted<br>|- <br>|Number<br>|0 <br>|5 <br>|Q4<br>|2022<br>|At least five scholarships granted to secondary<br>school graduates to study degree courses related<br>to agriculture, in cooperation with the<br>Department of Agriculture, the Agricultural<br>Research Institute and local universities.<br>|
|~~96~~|~~C3.1I4~~<br>Initiate the setup of<br>an Eco-Industrial|~~Milestone~~|~~Action Plan for the~~<br>Science Park|~~Publication of the~~<br>Council of<br>Ministers’|~~- ~~|~~- ~~|~~- ~~|~~Q3~~|~~2023~~|~~Approval by the Council of Ministers of an~~<br>Action Plan for the establishment of the Eco-<br>Industrial Science Park|

58

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
||Science Park|||decision and of<br>the action plan|||||||
|97|C3.1I5<br>Creation of a<br>National Commercial<br>Identity and<br>promotion of the<br>traditional product<br>“halloumi”|Milestone|Action Plans for<br>(a) the “made in<br>Cyprus” branding,<br>and (b) for the<br>promotion of the<br>halloumi cheese|Publication of the<br>Council of<br>Ministers’<br>decision and of<br>the action plan|-|-|-|Q1|2022|Adoption by the Council of Ministers of Action<br>Plans that shall consist of:<br>(1) assisting businesses to promote their<br>products and services on the basis of the “made<br>in Cyprus” branding, and <br>(2) increasing the distinctiveness of the<br>halloumi cheese as an authentic Cyprus product<br>and designing a promotional and awareness<br>campaign for it.|
|98|C3.1I6<br>Scheme for<br>modernisation and<br>digitalisation of<br>enterprises engaged<br>in manufacturing and<br>trading of agricultural<br>products|Target|Grants to SMEs<br>engaged with trade<br>and production of<br>agricultural<br>products|-|Number|0|65|Q4|2024|Award of grants to at least 65 Small and<br>Medium Enterprises engaged in manufacturing<br>and trading of agricultural products for their<br>modernisation and digitalisation|
|99<br>|C3.1I6<br>Scheme for<br>modernisation and<br>digitalisation of<br>enterprises engaged<br>in manufacturing and<br>trading of agricultural<br>products<br>|Target<br>|Grants to SMEs<br>engaged with trade<br>and production of<br>agricultural<br>products<br>|- <br>|Number<br>|65<br>|176<br>|Q1<br>|2026<br>|Award of grants to at least 176 SMEs engaged<br>in manufacturing and trading of agricultural<br>products for their modernisation and<br>digitalisation<br>|
|~~100~~|~~C3.1I7~~<br>Scheme for the<br>enhancement of large|~~Milestone~~|~~Start of the grant~~<br>scheme on large<br>enterprises in the|~~Publication of the~~<br>call for proposals<br>on the Ministry|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2022~~|~~Following scheme approval by the Council of~~<br>Ministers, issuance of call for proposals for the<br>award of grants to at least three large|

59

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
||enterprises<br>competitiveness in<br>the manufacturing<br>sector||Manufacturing<br>Sector|website||||||enterprises in the Manufacturing Sector to<br>expand existing business through investments<br>that enhance the technological level, the<br>production process and their productivity. The<br>terms of reference including eligibility criteria<br>that ensure that the selected projects comply<br>with the ‘Do no significant harm’ Technical<br>Guidance (2021/C58/01) through the use of an<br>exclusion list and the requirement of<br>compliance with the relevant EU and national<br>environmental legislation.|
|101|C3.1I7<br>Scheme for the<br>enhancement of large<br>enterprises<br>competitiveness in<br>the manufacturing<br>sector|Target|Grants to large<br>enterprises in the<br>Manufacturing<br>Sector|-|Number|0|3|Q4|2024|Award of grants to at least three large<br>enterprises in the Manufacturing Sector to<br>expand existing business through investments<br>that enhance the technological level, the<br>production process and their productivity.|
|102|C3.1I7<br>Scheme for the<br>enhancement of large<br>enterprises<br>competitiveness in<br>the manufacturing<br>sector|Target|Grants to large<br>enterprises in the<br>Manufacturing<br>Sector|-|Number|3|10|Q2|2026|Award of grants to at least 10 large enterprises<br>in the Manufacturing Sector to expand existing<br>business through investments that enhance the<br>technological level, the production process and<br>their productivity.|
|103|C3.1I8<br>Enhancing the added<br>value of the tourism<br>sector with emphasis<br>on the country side,|Target|Grant to SMEs to<br>promote the<br>tourism sector|-|Number|0|175|Q2|2023|Grants awarded to at least 175 SMEs,<br>comprising food establishments, taverns, micro,<br>small and medium enterprises selling traditional<br>products, for investing in renovation or<br>refurbishing.|

60

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
||mountainous and<br>remote areas||||||||||
|104|C3.1I8<br>Enhancing the added<br>value of the tourism<br>sector with emphasis<br>on the country side,<br>mountainous and<br>remote areas|Target|Grant to hotels to<br>promote the<br>tourism sector|-|Number|0|57|Q2|2026|Grants awarded to at least 57 hotels and other<br>tourism establishments, in countryside,<br>mountainous and remote areas, for investing in<br>renovation or refurbishing, including digital<br>investments.|
|105|C3.1I9<br>Promotion of circular<br>economy in hotel<br>establishments|Target|Coaching scheme<br>for circular<br>economy|-|Number|0|50|Q2|2022|Signed collaboration agreements with at least<br>50 hotels have been signed for tailored business<br>coaching for circular economy.|
|106|C3.1I9<br>Promotion of circular<br>economy in hotel<br>establishments|Target|Coaching scheme<br>for circular<br>economy|-|Number|0|18|Q1|2026|At least 18 hotels have been certified according<br>to national standards as circular hotels<br>following audit.|
|107|C3.1I10<br>Enrichment of the<br>tourism product in<br>rural, mountainous<br>and remote areas|Milestone|Aphrodite Route|Signed statement<br>of the acceptance<br>of the project by<br>project team<br>(contracting<br>authority)|-|-|-|Q4|2024|Completion of the Aphrodite Route, which shall<br>connect historical, religious and environmental<br>points of the area (such as nature trails) with a<br>special 2km long route, enhancing<br>environmental awareness and promoting<br>biodiversity.|
|108|C3.1I10<br>Enrichment of the<br>tourism product in<br>rural, mountainous<br>and remote areas|Target|Grants to<br>enterprises and<br>local community<br>boards to promote<br>micro and small<br>businesses in the<br>creative and|-|Number|0|105|Q4|2025|At least 105 enterprises and local community<br>boards have renovated, refurbished or visually<br>upgraded private and public buildings /<br>infrastructures in countryside, mountainous and<br>remote areas and repurposed them to host micro<br>and small businesses in the creative and<br>manufacturing sectors, such as artists,|

61

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
||||manufacturing<br>sectors, such as<br>artists, handcrafts<br>and traditional<br>products|||||||handcrafts and traditional products.|
|109|C3.1R4<br>Enhancement of<br>circular economy in<br>the Industry|Milestone|Approval of the<br>National Action<br>Plan for the<br>Enhancement of<br>Circular Economy<br>in Cyprus|Publication of the<br>Council of<br>Ministers’<br>decision for the<br>approval of the<br>National Action<br>plan.|-|-|-|Q4|2021|Approval, by the Council of Ministers, of the<br>National Action Plan for the Enhancement of<br>Circular Economy in Cyprus|
|110|C3.1R4<br>Enhancement of<br>circular economy in<br>the Industry|Target|Aid for SMEs<br>which are moving<br>into a circular<br>operating model|-|Number|0|40|Q2|2026|Aid granted to at least 40 eligible SMEs, in<br>compliance with the ’Do no significant harm’<br>Technical Guidance (2021/C58/01) through the<br>use of an exclusion list and the requirement of<br>compliance with the  relevant EU and national<br>environmental legislation.|
|111|C3.1R5<br>Establishment of a<br>Coordinating Body<br>between central and<br>local government|Milestone|Legislation on<br>coordination<br>between Central<br>and Local<br>Government|Provision in the<br>law indicating the<br>entry into force of<br>the legislation|-|-|-|Q2|2025|Entry into force of Legislation, which shall<br>establish a Coordinating Body between Central<br>and Local Government. The Coordinating Body<br>shall provide a mechanism to upscale waste<br>management, contribute to compliance with EU<br>waste management directives and promote<br>circular economy.|
|112|C3.1I12<br>Waste management<br>towards circular<br>economy|Milestone|Signature of the<br>contracts for the<br>installation of<br>Green kiosks,<br>construction of|Signature of the<br>contracts|-|-|-|Q3|2023|Signed contracts for (1) the set up and<br>installation of at least 50 Green kiosks for dry<br>recyclables (2) the construction/erection of two<br>reuse & repair centres and (3) the installation of<br>at least 2 050 composting systems.|

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|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Base**<br>**line**|**Goal**|**Quarter**|**Year**|**Year**|
||||reuse & repair<br>centres and<br>installation of<br>composting<br>systems||||||||
|113|C3.1I12<br>Waste management<br>towards circular<br>economy|Target|Start of operation<br>of reuse and repair<br>centres|-|Number|0|2|Q4|2025|Completion of construction and start of<br>operation of reuse and repair centres.|
|114<br>|C3.1I12<br>Waste management<br>towards circular<br>economy<br>|Target<br>|Completion of set<br>up, installation and<br>start of operation<br>of composting<br>systems<br>|- <br>|Number<br>|0 <br>|2 050<br>|Q4<br>|2025<br>|Completion of set up, installation and start of<br>operation of the composting systems.<br>|
|~~115~~|~~C3.1I12~~<br>Waste management<br>towards circular<br>economy|~~Target~~|~~Completion of~~<br>installation and<br>start of operation<br>of the green kiosks|~~- ~~|~~Number~~|~~0 ~~|~~50~~|~~Q4~~|~~2025~~|~~Completion of set up, installation and start of~~<br>operation of the green kiosks for dry<br>recyclables.|

63

**E.3.** **Description of the reforms and investments for the loan**

Investment 11 (C3.1I11): Improvement and extension of the Cyprus Green Points Network
and creation of a network of Collection Points and Recycling Corners

The objectives of the measure are the improvement of the management of solid waste, the
protection of the environment and public health. It aims at mitigating uncontrolled and illegal
dumping of waste in public areas, increasing the rate of recovery and recycling materials, and
raising users’ awareness of sustainable development and circular economy.

The investment foresees the construction of fourteen Green Points covering an area of at least
50 500 m² to serve citizens and local authorities to deposit specific household and municipal
waste streams. In addition to the creation of new Green Points, the investments foresees the
construction of Recycling Corners Network and Collection Points Network to give access to
citizens of rural communities to dispose of their waste.

The implementation of the investment shall be completed by 30 June 2026.

                                                      -                                                       Investment 13(C3.1I13): Establishment of the Orounda Livestock Waste and Animal By
Product Management Facilities

The objective of the measure is to develop regional Livestock Waste Management Facilities
to serve farms of the wider Orounda Complex area to provide an integrated solution for the
effective management of the organic waste produced mainly from piggeries, poultry, sheep,
goat and cattle farms. For those communities, the investment aims to achieve a close-loop
operation, minimisation of externalities and recovery of nutrients for soil improvement as well
as reduction of the social and environmental impact.

The investment foresees the construction of facilities for wastewater treatment, co-composting
and anaerobic digestion to allow the treatment of the big quantities of livestock waste
produced in the area, produce electricity from biogas, combat desertification at the local level,
reduce odour annoyance of local communities to less than 10% of the duration of the day,
reduce greenhouse gas emissions and produce water for irrigation.

The implementation of the investment shall be completed by 30 June 2026.

It is expected that this measure does not do significant harm to environmental objectives
within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the
description of the measure and the mitigating steps set out in the recovery and resilience plan
in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the measure
shall be subject to an Environmental Impact Assessment in the first year of implementation
and the requirement for adherence to the DNSH principle shall be included in all procurement
procedures.

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**E.4.** **Milestones, targets, indicators, and timetable for monitoring and implementation for the loan**

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for milestones)**<br>|**Unit of**<br>**measur**<br>**e **<br>|**Basel**<br>**ine**<br>|**Goal**<br>|**Q **<br>|**Y **<br>|**Y **<br>|
|~~116~~<br>|~~C3.1I11Improvement~~<br>and extension of the<br>Cyprus Green Points<br>Network and creation<br>of a network of<br>Collection Points and<br>Recycling Corners<br>|~~Target~~<br>|~~Completion of~~<br>construction,<br>expansion and<br>start of<br>operation of<br>four Green<br>Points<br>|~~- ~~<br>|~~Number~~<br>|~~0 ~~<br>|~~4 ~~<br>|~~Q4~~<br>|~~2023~~<br>|~~Completion of construction, expansion and start of~~<br>operation of four Green Points at Avgorou, Troulloi,<br>Eptagonia and Alambra  in accordance with the National<br>Strategic Plan for the Development of a National Green<br>Point Network<br>|
|~~117~~<br>|~~C3.1I11Improvement~~<br>and extension of the<br>Cyprus Green Points<br>Network and creation<br>of a network of<br>Collection Points and<br>Recycling Corners<br>|~~Target~~<br>|~~Completion of~~<br>construction,<br>expansion and<br>operation of 14<br>Green Points<br>|~~- ~~<br>|~~Number~~<br>|~~4 ~~<br>|~~14~~<br>|~~Q2~~<br>|~~2026~~<br>|~~Completion of construction, expansion and start of~~<br>operation of fourteen Green Points at Avgorou, Troulloi,<br>Eptagonia, Alambra, Aglantzia, Latsia, Derynia, Sotera,<br>Pelentri, Egkomi, Lakatamia, Pano Platres, Kalo Horio<br>Limassol, Souni Zanatzia in accordance with the National<br>Strategic Plan for the Development of a National Green<br>Point Network<br>|
|~~118~~<br>|~~C3.1I13Establishment~~<br>of the Orounda<br>Livestock Waste and<br>Animal-By-Product<br>Management Facilities<br>|~~Milestone~~<br>|~~Construction of~~<br>facilities for<br>wastewater<br>treatment and<br>co-composting<br>|~~Licences for the~~<br>construction<br>obtained and proof<br>of completed land<br>acquisition<br>|~~ -~~<br>|~~ -~~<br>|~~ -~~<br>|~~Q1~~<br>|~~2024~~<br>|~~All licences for the construction of facilities for~~<br>wastewater treatment and co-composting (environmental,<br>construction and operating permits and licenses) from all<br>relevant authorities such as Department of Environment,<br>Department of Town Planning and Housing and<br>Department of Land and Surveys have been obtained and<br>relevant land acquisition has been completed.<br>|
|~~119~~|~~C3.1.I13Establishment~~<br>of the Orounda<br>Livestock Waste and<br>Animal-By-Product<br>Management Facilities|~~Milestone~~|~~Completion~~<br>and start of<br>operation of the<br>Anaerobic<br>Digestion<br>facilities|~~Taking over~~<br>certificate issued<br>by the Project<br>Engineer and<br>approved by the<br>Technical Steering<br>Committee|~~ -~~|~~ -~~|~~ -~~|~~Q2~~|~~2026~~|~~Completion and start of operation of the Anaerobic~~<br>Digestion facilities, producing biogas (methane) to be<br>used for electricity production of 3,5 MWh (for 20 hours<br>of daily operation) at full capacity, 365 days a year. The<br>electricity produced shall be supplied to the grid.|

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**F.** **COMPONENT** **3.2:** **E** **NHANCED** **R** **ESEARCH AND** **I** **NNOVATION**

The component of the Cypriot recovery and resilience plan addresses the challenges that
Cyprus faces as regards the Research and Development ecosystem that plays a relatively
limited role in economic growth. This is mainly due to a low share of Science, Technology,
Engineering and Math (STEM) graduates, limited interaction of the public research system
with the business sector and limited access and availability of risk funding.

The objectives of the component are to strengthen links between research organisations and
enterprises, commercialise research results, increase intensity in research & development
(R&D) activity and investments by both public and private organisations, as well as to make
all publicly funded research infrastructure accessible to the entire ecosystem. Furthermore, it
aims to enhance financial support to start-ups, scale-ups, SMEs, internationalise the local
research and innovation (R&I) ecosystem, develop local talent and attract talent from abroad
to work in R&I with emphasis on specific thematic areas.

The component addresses the Country-Specific Recommendations on increasing the focus on
investment-related economic policy on research and innovation (Country-Specific
Recommendations 3 of 2020 and 4 of 2019).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**F.1.** **Description of the reforms and investments for non-repayable financial support**

Reform 1 (C3.2R1): Comprehensive national Research and Innovation Policy supported by
data-driven policy tools to support the R&I Ecosystem and to enhance links between policy
making and implementation

The objective of the measure is to promote the efficient coordination of the R&I governance
system, to foster awareness raising and nurture innovation culture, to mobilise stakeholders
and to develop and augment the fundamental building blocks of the national R&I ecosystem
(of three levels: policy making, strategy and implementation, stakeholders and users/citizens).

The reform shall consist in the implementation of the Action Plan for the National Strategy
for Research and Innovation. This shall follow the political endorsement of the Action Plan,
together with the adoption of a National Strategy for R&I and the revised Smart
Specialisation Strategy for Cyprus. It shall also consist in establishment of a mechanism for
impact driven monitoring and support of the six Centres of Excellence and in the development
of a digital tool for the dynamic mapping of the R&I ecosystem (stakeholders, policy
measures and tools, R&I performance, registry of innovative companies and sector analytics).

The implementation of the reform shall be completed by 31 December 2024.

Reform 2 (C3.2R2): Incentives to encourage and attract investments and human capital in
Research and Innovation

The objective of the measure is to attract investment in innovative companies and
entrepreneurial and scientific talents from abroad.

The reform shall consist in the extension of the application of the tax scheme for investing in
innovative companies to legal entities (from physical persons currently). Eligible investments
of up to EUR 150 000 per investor, under this incentive, include equity, loans, guarantees and
factoring. In addition, it shall consist in the review, promotion and, where appropriate,
amendment of current incentive schemes aimed at attracting talents from third countries,

66

including the Scientific VISA scheme for researchers and their families and the Start-up VISA
scheme for founders of innovative enterprises and their families.

The implementation of the reform shall be completed by 30 September 2022.

Reform 3 (C3.2R3): Introduce policies and incentives to facilitate and foster access to
publicly funded research infrastructure and laboratories

The objective of the measure is to optimise utilisation of publicly funded research
infrastructure and laboratories by the business community.

The reform shall consist in (i) an approval of an action plan focusing on the optimal utilisation
of research infrastructure and adopting actions aimed at promoting and enhancing the
collaboration among research organisations, academia and the private sector; (ii) the
development and launch of a dynamic digital tool accessible to all stakeholders of the R&I
ecosystem, providing information circulation, tools and services for the facilitation of a
collaborative partnership arrangement between different R&I organisations and teams (public
and private) in respect to publicly funded research infrastructures and laboratories; (iii) review
of the legal and operational framework of the publicly funded research institutions and
promote actions aiming to facilitate and support the optimal use of research infrastructure
through opening up access to other research institutions and the business sector; (iv)
introduction of measures and incentives (such as including in Research and Innovation
Foundation grant agreement a clause for opening up funded infrastructure) in order to enhance
the collaboration of Research Performing Organisations with business and spin-offs.

The implementation of the reform shall be completed by 31 December 2024.

Investment 1 (C3.2I1): Set up and operate a central knowledge transfer office

The objective of the measure is to improve technology transfer in Cyprus, through improved
academia-business collaboration and commercialisation of research.

The investment shall consist in the creation and putting in operation of a Knowledge Transfer
Office (KTO) by the Research and Innovation Foundation, to provide a cost-efficient solution
for the support of technology transfer, built on the principles of acquiring a critical mass of
research output and economies of scale. The KTO shall provide knowledge transfer services,
facilitating commercialisation of research, to universities, other research organisations and
enterprises. Indicative list of services: (a) evaluation of commercialisation prospects, (b)
intellectual property rights advice, (c) patents filed and intellectual property rights
maintenance cases, (d) development of commercialisation strategy, (e) technology marketing,
(f) support in setting up spin-off companies, and (g) provision of funding to support
translational research. The reform shall also consist in a review of the existing institutional
framework on knowledge transfer in Cyprus, including relevant legislation, as well as national
and institutional policies relating to the commercial exploitation of intellectual property,
knowledge transfer and the establishment of spin-off companies.

The KTO shall become self-financed starting from 1 January 2026, by retaining 20% of
revenue from KTO managed agreements for operational costs, to be specified in the
contractual arrangements between the Research and Innovation Foundation and the
beneficiary.

The implementation of the investment shall be completed by 31 December 2025.

Investment 2 (C3.2I2): Innovation funding programmes & funding schemes for the

                               enhancement of growth & competitiveness of start ups, innovative companies and SMEs

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The objective of the measure is to provide grant support through innovation programmes
(such as Fast-Track Innovation, Pre-Seed, Seed, Innovate) as a means to improve access to
funds for innovative SMEs and start-ups.

The investment shall consist in a grant support through innovation programmes (for instance,
Fast-Track Innovation, Pre-Seed, Seed, Innovate) for businesses to develop innovative
products and services with international orientation from concept to ready-for-market. The
funding programmes shall (i) promote collaboration of businesses with research
organisations; (ii) facilitate commercialisation of research results in targeting delivery of
closer-to-market outputs and outcomes, thus allowing for shorter-term economic effects; (iii)
lead to the creation of employment; (iv) promote business clustering, and (v) target
accelerated transition to a green economy and towards a digital era of efficiency and
productivity. These programmes shall require businesses to leverage private/own funds in
conjunction with public funding (provided by the Research and Innovation Foundation),
therefore contributing to the overall increase of R&D investment.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities [7] : (i) activities related to fossil
fuels, including downstream use; (ii) activities under the EU Emission Trading System
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological
treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (C3.2I3): Thematic research and innovation funding program on green transition

The objective of the measure is to provide grant support through thematic R&I programmes
of relatively high technology readiness levels focusing on green transition.

The investment shall consist in grant support of projects that shall be using the latest digital
technologies to provide cost-effective solutions for green transition, thereby upgrading the
country’s research capacity. The supported projects shall focus on renewable energy, energy
efficiency and sustainable transport, entail collaboration with Centres of Excellence for R&I,
and facilitate the commercialisation of research results.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities [8] : (i) activities related to fossil
fuels, including downstream use; (ii) activities under the EU Emission Trading System
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological
treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C3.2I4): Funding schemes to support organisations performing R&D activities

7 All footnotes set out in the text on measure C2.1I4 are also applicable to this measure.
8 All footnotes set out in the text on measure C2.1I4 are also applicable to this measure.

68

on dual technologies, including the creation of new or upgrade of existing laboratories and the
development of classified laboratories

The objective of the measure is to promote dual-use research and to use technologies, which
would otherwise only serve government/military purposes, for civilian, commercial and
societal interests.

The investment shall consist in a grant support that would enable research organisations and
companies to engage in R&D on dual-use technologies. The funding schemes shall enable the
upgrade of the R&I capabilities and capacity of Research Centres of Excellence, academic
institutions, research organisations as well as companies engaged in R&D on dual use
technologies. In particular, they shall enable these organisations to acquire security
classification certificates in order to be able to participate in consortia for European funding
(such as Horizon Europe, European Defence Fund) as well as to enhance their R&I
capabilities and competitiveness in the field of dual use technologies.

The funding shall focus on civil business only and research outcomes and infrastructure shall
benefit civil applications only. The measure shall comply with the Council Regulation (EC)
No 428/2009 of 5 May 2009 on setting up a Community regime for the control of exports,
transfer, brokering and transit of dual-use items, regarding dual use technologies during the
implementation of the funding scheme, and shall be designed in line with ‘EU Funding for
Dual Use – A practical guide to accessing EU funds for European Regional Authorities and
SMEs’.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities [9] : (i) activities related to fossil
fuels, including downstream use; (ii) activities under the EU Emission Trading System
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological
treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 30 June 2026.

9 All footnotes set out in the text on measure C2.1I4 are also applicable to this measure.

69

**F.2.** **Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone /**<br>**Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~120~~<br>|~~C3.2R1~~<br>National R&I<br>Policy and<br>policy tools<br>|~~Milestone~~<br>|~~Adoption of the~~<br>national R&I<br>Strategy and of<br>the Action Plan to<br>implement it<br>|~~Publication of~~<br>the Council of<br>Ministers’<br>decision<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q4~~<br>|~~2022~~<br>|~~Develop an integrated R&I Strategy, providing a~~<br>long-term perspective framework, ensuring a<br>focused effort and commitment for<br>implementation, over time, on behalf of the State<br>and stakeholders involved in the national R&I<br>system, and a digital tool for the dynamic<br>mapping of the R&I ecosystem.<br>|
|~~121~~|~~C3.2R1~~<br>National R&I<br>Policy and<br>policy tools|~~Milestone~~|~~Completion of the~~<br>Action Plan for<br>the R&I Strategy|~~Publication of~~<br>the Council of<br>Ministers’<br>approval of the<br>progress<br>report,<br>attesting the<br>completion of<br>the action plan|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2024~~|~~Implementation of the measures in the Action~~<br>Plan of the National Research and Innovation<br>Strategy, as evidenced by a progress report.|
|122|C3.2R2<br>Incentives for<br>investments<br>and human<br>capital in R&I|Milestone|Tax exemption of<br>legal entities for<br>investing in<br>innovative<br>companies|Provision in<br>the law<br>indicating the<br>entry into<br>force of the<br>legislation|-|-|-|Q1|2022|Entry into force a law establishing the tax<br>exemption of corporate investors (legal entities)<br>for investing in innovative companies.|
|123|C3.2R3<br>Policies to<br>foster access<br>to publicly<br>funded|Milestone|Digital registry to<br>record and<br>publish research<br>infrastructure|Link to the<br>digital registry<br>published in<br>the Deputy<br>Ministry for|-|-|-|Q4|2022|Development and start of operation of a digital<br>registry to record and publish research<br>infrastructure that shall facilitate the request of<br>access of interested parties to such infrastructure.<br>It shall include the mapping of all publicly|

70

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||research<br>infrastructure<br>and<br>laboratories|||Research,<br>Innovation and<br>Digital Policy<br>website||||||funded research institutions (under Horizon<br>2020, national schemes). It shall also improve<br>visibility of the Research Institutions and support<br>collaboration with the private sector.|
|124<br>|C3.2R3<br>Policies to<br>foster access<br>to publicly<br>funded<br>research<br>infrastructure<br>and<br>laboratories<br>|Milestone<br>|Collaboration of<br>Research<br>Performing<br>Organisations<br>with business and<br>spin-offs<br>|Publication of<br>measures and<br>incentives<br>adopted on the<br>Research and<br>Innovation<br>Foundation<br>website<br>|- <br>|- <br>|- <br>|Q4<br>|2024<br>|Adoption of measures and incentives to enhance<br>the collaboration of Research Performing<br>Organisations with business and spin-offs, such<br>as including in Research and Innovation<br>Foundation grant agreement a clause for opening<br>up funded infrastructure.<br>|
|~~125~~|~~C3.2I1~~<br>Set up and<br>operate a<br>central<br>Knowledge<br>Transfer<br>Office (KTO)|~~Milestone~~|~~Launch of KTO~~|~~Opening of~~<br>KTO’s first<br>case|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2022~~|~~The Research and Innovation Foundation,~~<br>responsible for putting in operation the KTO, has<br>hired or contracted highly trained staff and/or<br>experts to provide expert knowledge transfer<br>services. Systems and tools shall be in place to<br>support KTO operation. The KTO shall start the<br>provision of services to universities, other<br>research organisations or enterprises.|
|126<br>|C3.2I1<br>Set up and<br>operate a<br>central<br>Knowledge<br>Transfer<br>Office (KTO)<br>|Target<br>|Case files closed<br>attesting<br>provision of<br>relevant<br>knowledge<br>transfer services<br>|- <br>|Number<br>|0 <br>|30<br>|Q4<br>|2025<br>|At least 30 completed cases of knowledge<br>transfer services provided by the central KTO to<br>universities, other research organisations or<br>enterprises.<br>|
|~~127~~|~~C3.2I2~~<br>Innovation|~~Milestone~~|~~Signature of grant~~<br>agreements for|~~Grant~~<br>agreements|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2022~~|~~Signing of grant agreements which commit at~~<br>least 50% of total budget (contracts of a total|

71

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||funding<br>programmes<br>for start-ups,<br>innovative<br>companies<br>and SMEs||50% of budget|signed||||||value of at least EUR 26 000 000 total budget)<br>for innovation funding programmes for start-ups,<br>innovative companies and SMEs, with terms of<br>reference including eligibility criteria that ensure<br>that the selected projects comply with the‘Do no<br>significant harm’ Technical Guidance<br>(2021/C58/01) through the use of an exclusion<br>list and the requirement of compliance with the<br>relevant EU and national environmental<br>legislation.|
|128<br>|C3.2I2<br>Innovation<br>funding<br>programmes<br>for start-ups,<br>innovative<br>companies<br>and SMEs<br>|Target<br>|Organisations<br>supported to carry<br>out R&I related<br>activities<br>|- <br>|Number<br>|0 <br>|70<br>|Q3<br>|2023<br>|Funding support to at least 70 organisations to<br>carry out R&I related activities such as<br>industrial research, experimental research<br>innovation activities, start-up activities,<br>knowledge transfer activities, including (but not<br>limited to) activities for the management and<br>protection of intellectual property, for<br>establishing links between research organisations<br>and companies, for building knowledge transfer<br>capacity and for commercialising research<br>results, in compliance with the ’Do no<br>significant harm’ Technical Guidance<br>(2021/C58/01) through the use of an exclusion<br>list and the requirement of compliance with the<br>relevant EU and national environmental<br>legislation.<br>|
|~~129~~|~~C3.2I2~~<br>Innovation<br>funding<br>programmes|~~Target~~|~~Organisations~~<br>supported to carry<br>out R&I related<br>activities|~~- ~~|~~Number~~|~~70~~|~~200~~|~~Q2~~|~~2026~~|~~Funding support to at least 200 organisations to~~<br>carry out R&I related activities, in compliance<br>with the ’Do no significant harm’ Technical<br>Guidance (2021/C58/01) through the use of an|

72

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||for start-ups,<br>innovative<br>companies<br>and SMEs|||||||||exclusion list and the requirement of compliance<br>with the  relevant EU and national environmental<br>legislation.|
|130<br>|C3.2I3<br>R&I funding<br>program on<br>green<br>transition<br>|Milestone<br>|Signature of grant<br>agreements for<br>the whole budget<br>|Grant<br>agreements<br>signed by the<br>Director of the<br>Research and<br>Innovation<br>Foundation<br>|- <br>|- <br>|- <br>|Q4<br>|2022<br>|Signing of grant agreements for R&I funding<br>program on green transition, with terms of<br>reference including eligibility criteria that ensure<br>that the selected projects comply with the‘Do no<br>significant harm’ Technical Guidance<br>(2021/C58/01) through the use of an exclusion<br>list and the requirement of compliance with the<br>relevant EU and national environmental<br>legislation.<br>|
|~~131~~<br>|~~C3.2I3~~<br>R&I funding<br>program on<br>green<br>transition<br>|~~Target~~<br>|~~Organisations~~<br>supported by<br>grants on green<br>transition R&I<br>activities<br>|~~- ~~<br>|~~Number~~<br>|~~0 ~~<br>|~~10~~<br>|~~Q2~~<br>|~~2026~~<br>|~~At least 10 enterprises supported by grants on~~<br>green transition R&I activities, in compliance<br>with the ’Do no significant harm’ Technical<br>Guidance (2021/C58/01) through the use of an<br>exclusion list and the requirement of compliance<br>with the  relevant EU and national environmental<br>legislation.<br>|
|~~132~~|~~C3.2I4~~<br>Funding to<br>organisations<br>performing<br>R&D<br>activities on<br>dual<br>technologies|~~Milestone~~|~~Signing of grant~~<br>agreements which<br>commit 80% of<br>total budget for<br>funding to<br>organisations<br>performing R&D<br>activities on dual<br>technologies|~~Grant~~<br>agreements<br>signed|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2023~~|~~Signing of grant agreements which commit 80%~~<br>of total budget (contracts of at least a total value<br>of 2 400 000 euro total budget) for funding to<br>organisations performing R&D activities on dual<br>technologies, with terms of reference including<br>eligibility criteria that ensure that the selected<br>projects comply with the‘Do no significant<br>harm’ Technical Guidance (2021/C58/01)<br>through the use of an exclusion list and the<br>requirement of compliance with the relevant EU|

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|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||and national environmental legislation.|
|133|C3.2I4<br>Funding<br>organisations<br>performing<br>R&D<br>activities on<br>dual<br>technologies|Target|Funding for the<br>development of<br>classified<br>Laboratories|-|Number|0|16|Q2|2026|At least 16 enterprises are receiving funding for<br>the development of classified laboratories. An<br>enterprise may be counted more than once if it<br>participates in more than one project, in<br>compliance with the ’Do no significant harm’<br>Technical Guidance (2021/C58/01) through the<br>use of an exclusion list and the requirement of<br>compliance with the relevant EU and national<br>environmental legislation.|

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**G.** **COMPONENT** **3.3:** **B** **USINESS SUPPORT FOR** **C** **OMPETITIVENESS**

This component of the Cypriot Recovery and Resilience addresses the challenges of low
productivity and competitiveness of the economy, driven by the enterprises’ small size on
average, the complex licensing process requested for an investment and difficulties of access
to funding to business. The objectives of this component are to support entrepreneurs and
enterprises and improve their competitiveness and contribution to the growth of the economy
by improving the regulatory framework regarding investment and entrepreneurial activity and
to enhance SMEs productivity, mainly through digitalisation. It consists of six reforms and six
investments, to be completed by Q2 2026.

The component addresses the Country-Specific Recommendation 3 of 2020 and CountrySpecific Recommendation 4 of 2019.

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**G.1. Description of the reforms and investments for non** **repayable financial support**

Reform 1 (C3.3R1): Facilitation of Strategic investments

The objective of the measure is to develop a new system supporting strategic investments,
aiming at stimulating investment activity in the country through streamlined rules and
mechanisms, simplifying the licencing and permit procedures, reducing the administrative
burden and making the strategic investment environment more efficient. The definition of
strategic investment refers to investments in strategic sectors (including Health and Social
Care, Education, Culture, Sport, Environment, Industry, Tourism, Energy, Research,
Development and Innovation) that significantly contribute to the development of the

economy.

The reform shall consist in the entry into force of a legislation for the facilitation of strategic
investments, in regards to the efficiency of obtaining investment licenses and building
permits. A dedicated governmental sector shall be assigned for the processing of strategic
investments. It shall consist in the preparation of the operational guidelines, process flows,
and other ISO 9001:2015 requirements for mainstreaming the process. It shall develop
Memorandum of Understandings with other Departments relevant to parts of the process in
order to ensure the fast-track mechanism’s feasibility. Moreover, it shall include training of
employees in the procedures to be introduced. In addition, the reform shall benefit from the
set-up of a digital platform that shall enable applying, studying and issuing Planning and
Building Permits digitally, through an application management tool and a GIS system (project

                      under Component 3.4: “enhancing e system for issuing building permits”).

The implementation of the reform shall be completed by 30 June 2023.

Reform 2 (C3.3R2): Enhancing Fast-Track Business Activation Mechanism

The objectives of the measure are the simplification of the procedures, the digitalisation of the
governmental services and the operation of a Business Support Centre that shall provide all
necessary and supportive information and services

The reform shall consist in the establishment of an interactive digital platform, enhancing the
Fast-track Business activation Mechanism that is already in operation. Through the platform

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the investor shall be able to track his/her application but also the competent authorities will be
able to interact, exchange documents and process the application.

The implementation of the reform shall be completed by 31 December 2025.

Reform 3 (C3.3R3): Modernisation of the Companies Law

The objective of the measure is to support the improvement of the business environment by
the review of the Companies Act, making it clearer in interpreting and applying the law in
practice.

The reform shall consist in modernising the Cyprus Companies Law by using best practices
from other common law jurisdictions to provide a foundation of knowledge and clarity in the
form of case law and literature, to assist in interpreting and applying the law in practice. The
accompanying Companies Rules shall also be reviewed. Moreover, Cyprus shall assign a
team of legal experts to undertake the project for advisory and drafting services of the new
Companies Law and Regulations. Moreover, the law review shall include the insolvency
proceedings under the Companies Law, which are Liquidations, Receivership and
Examinership. Also, the reform shall include the undertaking of an SME test during the
preparing of the bill.

The implementation of the reform shall be completed by 31 December 2025.

Reform 4 (C3.3R4): Design and establish a National Promotional Agency

The objective of the reform is to improve access to finance for Small Medium Enterprises
(SMEs) by facilitating access to loans, guarantees and equity financing and enhance the
absorption capacity of EU financing through EU tools.

The reform shall consist in an ex-ante assessment analysis covering SMEs’ access to finance
in all sectors of the economy with a focus on green and circular economy, digital enablement
and alternative financing. The report shall define the scope of intervention of the proposed
NPA. The legal and organisational set-up of the National Promotional Agency shall be
defined after the final selection of its scope of activity. The proposed structure shall allow a
high transparency of NPA's operations and autonomy. The Agency shall not operate with a
banking license and therefore will not need to be capitalised a priori. A steering committee,
with the participation of representatives of the Ministry of Finance and the Ministry of
Energy, Commerce and Industry shall monitor the implementation.

The implementation of the reform shall be completed by 30 September 2025.

Reform 5 (C3.3R5): Strategic Investor of the Cyprus Stock Exchange

The objective of the reform is the privatisation of the Cyprus Stock Exchange.

The reform shall consist in a tender process, which is currently underway whereby the Cyprus
Stock Exchange seeks to appoint a reputable independent advisor or consortium thereof, with
extensive relevant expertise to find the most suitable strategic investor for the Cyprus Stock
Exchange. The privatisation phase of the contract shall be concluded upon final approval by
the House of Representatives of the Republic of Cyprus, after all other conditions have been

met.

The implementation of the reform shall be completed by 31 December 2024.

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Reform 6 (C3.3R6): Incentives to promote mergers & acquisitions

The objective of the measure is to incentivise the increase of SMEs’ size.

The reform shall consist in targeted incentives to promote the mergers or acquisitions of
enterprises in order to scale-up and become more competitive. In particular, the reform shall
consist in the approval of a report and an accompanying action plan by the Council of
Ministers, following the evaluation of similar regimes within the EU and consultation with
stakeholders for specific incentives for promoting mergers and acquisitions.

The implementation of the reform shall be completed by 31 December 2022.

Investment 2 (C3.3I2): Creation of a Regulatory Sandbox to enable FinTech

The objective of the measure is to enable FinTech, start-ups, and other innovative companies
to expand their offering in new products or services, by regulators establishing a "testing
ground" that would allow them to conduct live experiments in a controlled environment under
their supervision.

The investment shall consist in facilitating the development of a suitable and attractive
regulatory regime on FinTech and innovative technologies and strike a balance between the
seamless deployment of innovative products or services and ensuring investors’ protection.

The implementation of the investment shall be completed by 30 September 2024.

Investment 3 (C3.3I3): Consulting services for Small and Medium Enterprises (SMEs)

The objective of the measure is to promote the development of SMEs in Cyprus and increase
in their competitiveness, through tailor-made advisory services and other non-financial
support tools.

The investment shall consist in providing to SMEs expert assistance, business advice, targeted
training and business matching activities.

The implementation of the investment shall be completed by 31 December 2025.

Investment 4 (C3.3I4): Scheme for the digital upgrade of enterprises

The objective of the investment is to enhance the integration of digital technology in existing
and future SMEs established in Cyprus. More specifically, the measure aims to enhance the
digital identity of the businesses, increasing the share of Small and Medium Enterprises that
use information and communication technologies, including the e-commerce sector, and to
promote digital entrepreneurship.

The investment shall consist in the provision of financial grants of about EUR 30 000 to each
beneficiary, as a share of what they shall have invested in eligible investment for the digital
upgrade of their enterprises.

The implementation of the investment shall be completed by 30 June 2026.

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Investment 5 (C3.3I5): Support extroversion and openness of Cyprus firms to international
trade

The objective of the investment is to strengthen the extroversion of new and existing
enterprises active in the fields of manufacturing and processing and marketing of agricultural
and industrial products as well as service providers.

The investment shall consist in a grant scheme of a total of EUR 8 000 000 to at least 140
Cypriot firms through funding actions to strengthen their extroversion for enterprises active in
the fields of manufacturing/processing and marketing of agricultural and industrial products
and service providers. Selectable funding expenditures might include consultancy and other
eligible, under the state-aid regulations, expenses.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming
calls for projects shall exclude the following list of activities [10] : (i) activities related to fossil
fuels, including downstream use; (ii) activities under the EU Emission Trading System (ETS)
achieving projected greenhouse gas emissions that are not lower than the relevant
benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological
treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to
the environment. The terms of reference shall additionally require that only activities that
comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 30 June 2026.

Investment 6 (C3.3I6): State funded equity fund

The objective of the measure is the establishment of a Fund to support the efforts of the
Government to enhance access to alternative sources of finance aiming to (i) foster economic
development and growth and enhance the competitiveness of small-medium enterprises in
Cyprus; (ii) increase the availability of alternative financing sources, particularly for
innovative companies and start-ups; and (iii) contribute to the enhancement of the ecosystem
for equity and venture capital investments.

The investment shall consist in a tender procedure to select and appoint an external fund
manager for an investment period that is foreseen to be five years.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical
Guidance (2021/C58/01), the legal agreement between Cyprus and the Fund in charge of the
financial instrument and the subsequent investment policy of the financial instrument shall

i. require the application of the Commission’s technical guidance on sustainability
proofing for the InvestEU Fund; and

ii. exclude the following list of activities and assets from eligibility: (i) activities and
assets related to fossil fuels, including downstream use [11] ; (ii) activities and assets
under the EU Emission Trading System (ETS) achieving projected greenhouse gas
emissions that are not lower than the relevant benchmarks [12] ; (iii) activities and assets

10 All footnotes set out in the text on measure C2.1I4 are also applicable to this measure.
11 Except projects under this measure in power and/or heat generation, as well as related transmission and
distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the
‘Do no significant harm’ Technical Guidance (2021/C58/01).
12 Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than
the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks

78

related to waste landfills, incinerators [13] and mechanical biological treatment plants [14] ;
and (iv) activities and assets where the long-term disposal of waste may cause harm to
the environment; and

iii. require the verification of legal compliance with the relevant EU and national
environmental legislation of the projects by Fund for all transactions, including those
exempted from sustainability proofing.

The implementation of the investment shall be completed by 30 June 2026.

established for free allocation for activities falling within the scope of the Emissions Trading System, as set out
in the Commission Implementing Regulation (EU) 2021/447.
13 This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of
increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration
ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing
capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
14 This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants,
where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to
recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided
such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an
extension of the lifetime of the plants; for which evidence is provided at plant level.

79

**-**
**G.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|134|C3.3R1<br>Facilitation<br>of Strategic<br>investments|Milestone|Law for<br>strategic<br>investments|Provision in the<br>law indicating the<br>entry into force of<br>the law|-|-|-|Q1|2022|Entry into force of a law supporting strategic<br>investments in Cyprus which shall include<br>the following elements: streamlining of<br>procedures for licencing strategic<br>investment, project manager for each project,<br>timely issuance of building permits.|
|135<br>|C3.3R1<br>Facilitation<br>of Strategic<br>investments<br>|Milestone<br>|Organisationa<br>l capacity’s<br>enhancement<br>for the<br>facilitation of<br>strategic<br>investments<br>|Publication in the<br>official gazette<br>the setup of a<br>government<br>sector facilitating<br>the reform, and of<br>the process<br>system and<br>guidelines, and<br>stated verification<br>by the<br>coordinating<br>authority of<br>training<br>completion<br>|-<br>|- <br>|-<br>|Q2<br>|2023<br>|Publication in the official gazette of the<br>completion of the setup of a sector in the<br>Department of Town Planning and Housing<br>for the enhancement of the facilitation of<br>strategic system; publication of the process<br>system and of the guidelines design; and<br>reporting by the Coordinating authority of<br>key personnel training for the<br>implementation of the reform.<br>|
|~~ 136~~|~~C3.3R2~~<br>Enhancing<br>Fast-Track<br>Business<br>Activation<br>Mechanism|~~Milestone~~|~~Establishment~~<br>of a platform<br>where<br>investors can<br>track their<br>online<br>application|~~Announcement~~<br>by the Ministry of<br>Commerce of the<br>platform<br>accepting<br>applications|~~ -~~|~~-~~|~~-~~|~~Q4~~|~~2022~~|~~Upgrade of the services of applications for~~<br>business permit issuance, guidance for<br>establishment and operation, provision of<br>information for all the necessary permits<br>required by the company to start operations,<br>facilitation for the issuance of residence and<br>employment permits in Cyprus for third-|

80

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||and interact<br>with the<br>competent<br>authorities|||||||country nationals through the establishment<br>of a platform where investors may track their<br>online application and interact with the<br>competent authorities.|
|137|C3.3R2<br>Enhancing<br>Fast-Track<br>Business<br>Activation<br>Mechanism|Target|Assessments<br>of<br>applications<br>for<br>investment<br>through the<br>platform|-|Number|0|50|Q4|2025|Completion of the assessment of at least 50<br>applications for investment through the<br>platform.|
|138<br>|C3.3R3<br>Modernisati<br>on of the<br>Companies<br>Law<br>|Milestone<br>|Submission<br>of the draft<br>law to the<br>Parliament<br>for approval,<br>restructuring<br>the<br>Companies<br>Law<br>|Submission of the<br>draft law to the<br>Parliament, after<br>its adoption by<br>the Council of<br>Ministers<br>|-<br>|-<br>|-<br>|Q3<br>|2024<br>|Submission of the draft law to the Parliament<br>for approval. The draft law shall restructure<br>the Companies Law. It shall in particular<br>modernise the Cyprus Companies Law by<br>using best practices from other common law<br>jurisdictions to provide a foundation of<br>knowledge and clarity in the form of case<br>law and literature and to assist in interpreting<br>and applying the law in practice.<br>|
|~~139~~|~~C3.3R3~~<br>Modernisati<br>on of the<br>Companies<br>Law|~~Milestone~~|~~Entry into~~<br>force of the<br>Companies<br>Law|~~Provision in the~~<br>law indicating the<br>entry into force of<br>the law|~~ -~~|~~-~~|~~-~~|~~Q4~~|~~2025~~|~~Entry into force of the Companies Law~~<br>which shall restructure the Companies Law.<br>It shall in particular modernise the Cyprus<br>Companies Law by using best practices from<br>other common law jurisdictions to provide a<br>foundation of knowledge and clarity in the<br>form of case law and literature and to assist<br>in interpreting and applying the law in<br>practice.|
|140|C3.3R4|Milestone|Approval by|Publication of the|-|-|-|Q2|2023|Approval by the Council of Ministers of the|

81

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Design and<br>establish a<br>National<br>Promotional<br>Agency<br>||the Council of<br>Ministers of<br>the roadmap<br>for the<br>creation and<br>establishment<br>of a National<br>Promotional<br>Agency<br>|Council of<br>Ministers’<br>decision<br>||||||roadmap for the creation and establishment<br>of a National Promotional Agency which<br>shall facilitate access to loans, guarantees<br>and equity financing to Small and Medium<br>Enterprises and enhance the absorption<br>capacity of EU financing through EU tools<br>|
|~~ 141~~|~~C3.3R4~~<br>Design and<br>establish a<br>National<br>Promotional<br>Agency|~~Milestone~~|~~Start of~~<br>operations of<br>Cyprus<br>National<br>Promotional<br>Agency|~~Initial set-up~~<br>validated by<br>Permanent<br>Secretary|~~ -~~|~~-~~|~~-~~|~~Q3~~|~~2025~~|~~Start of operations of Cyprus National~~<br>Promotional Agency, including staffing with<br>required staff|
|142<br>|C3.3R5<br>Strategic<br>Investor of<br>the Cyprus<br>Stock<br>Exchange<br>|Milestone<br>|Selection of a<br>strategic<br>investor to<br>buy a<br>controlling<br>stake in<br>Cyprus Stock<br>Exchange<br>|Council of<br>Ministers<br>approves<br>Agreement<br>|-<br>|- <br>|- <br>|Q4<br>|2024<br>|Selection of a strategic investor to buy a<br>controlling stake in Cyprus Stock Exchange,<br>signing of the relevant agreements, achieving<br>financial closing of the transaction.<br>|
|~~143~~|~~C3.3R6~~<br>Incentives to<br>promote<br>mergers and<br>acquisitions.|~~Milestone~~|~~Action Plan~~<br>for incentives<br>for mergers<br>and<br>acquisitions|~~Council of~~<br>Ministers<br>adoption of a<br>report and the<br>accompanying<br>action plan|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2022~~|~~Approval of a report and an accompanying~~<br>action plan by the Council of Ministers on<br>specific incentives for promoting mergers<br>and acquisitions, following the evaluation of<br>similar regimes within the EU and<br>consultation with stakeholders.|
|144|C3.3I2|Milestone|Regulatory|Announcement|-|-|-|Q2|2023|Launch a Regulatory Sandbox which shall|

82

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Creation of a<br>Regulatory<br>Sandbox to<br>enable<br>FinTech<br>||Sandbox with<br>a view on<br>FinTech and<br>innovative<br>technologies<br>|for the launch of<br>the regulatory<br>Sandbox by<br>Cyprus Securities<br>and Exchange<br>Commission.<br>||||||facilitate the development of a suitable and<br>attractive regulatory regime on FinTech and<br>innovative technologies and strike a balance<br>between the seamless deployment of<br>innovative products or services and ensuring<br>investors’ protection. <br>|
|~~145~~|~~C3.3I3~~<br>Consulting<br>services for<br>SMEs|~~Milestone~~|~~Support~~<br>scheme on<br>consulting<br>services for<br>SMEs|~~Public~~<br>announcement of<br>the launch of the<br>Scheme|~~-~~|~~-~~|~~-~~|~~Q3~~|~~2022~~|~~Launch of the support scheme on consulting~~<br>services for SMEs through an open call for<br>proposals aiming to strengthen SMEs’<br>competitiveness and support their business<br>growth, aiming at increased productivity and<br>sales, modernised production line and<br>technology, upgraded product ranges and<br>production processes.|
|146|C3.3I3<br>Consulting<br>services for<br>SMEs|Target|SMEs<br>receiving<br>support by<br>accredited<br>consultants|-|Number|0|375|Q4|2025|At least 375 SMEs shall receive support by<br>accredited consultants through the support<br>scheme, with terms of reference including<br>eligibility criteria that ensure that the<br>selected projects comply with the‘Do no<br>significant harm’ Technical Guidance<br>(2021/C58/01) through the use of an<br>exclusion list and the requirement of<br>compliance with the relevant EU and<br>national environmental legislation. The<br>provision of services shall be verified by the<br>Computerised System of the Ministry of<br>Energy, Commerce and Industry - Industry<br>and Technology Service - verified by<br>Department of Industry and Technology<br>Service staff running the scheme before|

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|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||submitting approved applications to accounts<br>department for administrative verification<br>and payment of grant.<br>|
|~~147~~|~~C3.3I4~~<br>Scheme for<br>the digital<br>upgrade of<br>enterprises|~~Milestone~~|~~Publication of~~<br>call for<br>proposals<br>following<br>approval of<br>the scheme by<br>the Council of<br>Ministers|~~Official~~<br>announcement of<br>the call for<br>proposals in the<br>press, the<br>MECI/ITS<br>website and<br>MECI/ITS social<br>media|~~ -~~|~~- ~~|~~- ~~|~~Q2~~|~~2023~~|~~Publication of call for proposals for grants~~<br>covering a percentage of expenditure that<br>shall enhance the digital identity of the<br>businesses, or shall increase the amount of<br>small and medium-size enterprises that use<br>information and communication technologies<br>(including the e-commerce sector), or shall<br>promote digital entrepreneurship or will<br>include, following approval of the scheme<br>for the digital upgrade of enterprises by the<br>Council of Ministers.|
|148<br>|C3.3I4<br>Scheme for<br>the digital<br>upgrade of<br>enterprises<br>|Target<br>|SMEs<br>supported<br>following<br>submission of<br>payment<br>applications.<br>|-<br>|Number<br>|0 <br>|290<br>|Q2<br>|2026<br>|At least 290 SMEs supported following<br>submission of payment applications and<br>administrative and on the spot verifications<br>performed by the responsible Scheme<br>Management Team.<br>|
|~~149~~|~~C3.3I5~~<br>Support<br>extroversion<br>and<br>openness of<br>Cyprus firms<br>to<br>international<br>trade|~~Target~~|~~Enterprises~~<br>supported for<br>trade<br>extroversion<br>activities|~~ -~~|~~Number~~|~~0 ~~|~~40~~|~~Q4~~|~~2023~~|~~At least 40 Enterprises supported for trade~~<br>extroversion activities, following submission<br>of payment application and verification<br>performed by the responsible Scheme<br>Management Team.<br> <br>The call of proposals shall have terms of<br>reference that shall include eligibility criteria<br>that ensure that the selected projects comply<br>with the‘Do no significant harm’ Technical|

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|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||Guidance (2021/C58/01) through the use of<br>an exclusion list and the requirement of<br>compliance with the relevant EU and<br>national environmental legislation.|
|150|C3.3I5<br>Support<br>extroversion<br>and<br>openness of<br>Cyprus firms<br>to<br>international<br>trade|Target|Enterprises<br>supported for<br>trade<br>extroversion<br>activities|-|Number|40|140|Q2|2026|At least 140 Enterprises supported for trade<br>extroversion activities, following submission<br>of payment application and verification<br>performed by the responsible Scheme<br>Management Team, in compliance with the<br>’Do no significant harm’ Technical Guidance<br>(2021/C58/01) through the use of an<br>exclusion list and the requirement of<br>compliance with the  relevant EU and<br>national environmental legislation.|
|151|C3.3I6<br>State funded<br>equity fund|Milestone|Setup of the<br>Registered<br>Alternative<br>Investment<br>Fund in the<br>Cyprus<br>Securities and<br>Exchange<br>Commission<br>register|Registration of<br>the RAIF in the<br>Cyprus Securities<br>and Exchange<br>Commission<br>(CySec) Register|-|-|-|Q4|2022|The setup of the Registered Alternative<br>Investment Fund (RAIF) in the Cyprus<br>Securities<br>and<br>Exchange<br>Commission<br>(CySec) register is completed. The Fund<br>shall increase the availability of alternative<br>financing sources, particularly for innovative<br>companies and start-ups.<br> <br>The<br>investment<br>policy<br>shall<br>include<br>eligibility criteria for investees to ensure<br>compliance with the ‘Do no significant<br>harm’ Technical Guidance (2021/C58/01) of<br>supported transactions under this measure<br>through the use of sustainability proofing,<br>the requirement of compliance with the<br>relevant EU and national environmental|

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|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||legislation,<br>and<br>the<br>requirement<br>for<br>beneficiaries that derived more than 50% of<br>their revenues during the preceding financial<br>year from activities or assets in the exclusion<br>list to adopt and publish green transition<br>plans.<br>|
|~~152~~|~~C3.3I6~~<br>State funded<br>equity fund|~~Target~~|~~Investees~~<br>supported<br>through the<br>Fund|~~- ~~|~~Number~~|~~0 ~~|~~12~~|~~Q2~~|~~2026~~|~~At least 12 investees (start-ups and~~<br>innovative companies) supported through the<br>Fund.|

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**G.3. Description of the reforms and investments for the loan**

Investment 1 (C3.3I1): Integrated Information system for the Registrar of Companies and
Official Receiver.

The objectives of the measure are the design, development, implementation, maintenance and
operation of an Integrated Registry Platform solution supporting the processes and services of
the Companies Section and Intellectual and Industrial Property Section of the Registrar of
Companies and Official Receiver, in such a way to drive the digital transformation of the two
aforementioned sections to become established as frontrunners in digital presence, online
capabilities and outstanding customer service delivered by efficient internal processes and
supported by flexible IT systems.

The investment shall consist in the installation of the hardware and software of the system,
completing the network infrastructure, and the training of the personnel for the new system.

The implementation of the investment shall be completed by 31 December 2025.

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**G.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan**

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone /**<br>**Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~153~~<br>|~~C3.3I1~~<br>Integrated<br>Information<br>system for the<br>Registrar of<br>Companies and<br>Official Receiver<br>|~~Milestone~~<br>|~~System~~<br>hardware<br>and<br>software<br>installation<br>and<br>networking<br>completed<br>|~~Issuance of~~<br>completion<br>and of<br>operation for<br>the installation<br>of system<br>hardware &<br>software and<br>networking<br>completed<br>|~~ -~~<br>|~~-~~<br>|~~-~~<br>|~~Q1~~<br>|~~2023~~<br>|~~Installation of system hardware & software~~<br>and networking completed (servers, hard<br>disks, PCs and peripherals, RDBMS,<br>operating systems and routers).<br>|
|~~154~~|~~C3.3I1~~<br>Integrated<br>Information<br>system for the<br>Registrar of<br>Companies and<br>Official Receiver|~~Target~~|~~Training of~~<br>personnel|~~ -~~|~~% ~~<br>(Percentag<br>e)|~~0 ~~|~~100~~|~~Q4~~|~~2025~~|~~Training of 100% of personnel of the~~<br>Registrar of Companies, Official Receiver<br>and the Department of Information<br>Technology Services personnel on the<br>rolled-out information system and related<br>operational procedures.|

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**H.** **COMPONENT** **3.4:** **M** **ODERNISING PUBLIC AND LOCAL AUTHORITIES** **,** **MAKING JUSTICE**

**MORE EFFICIENT AND FIGHTING CORRUPTION**

This component of the Cypriot recovery and resilience plan addresses long-standing
challenges in the functioning of public administration, at both the central and the local levels,
the justice system and the anti-corruption framework. The objectives of the component are: (i)
to increase the effectiveness, efficiency and relevance of government processes, considering
current challenges, needs, and expectations of citizens and businesses, (ii) to strengthen the
administrative capacity and cooperation of the Ministry of Interior and local governments to
ensure the effective implementation of the new local administration model, (iii) to improve
the effectiveness, including quality and efficiency, of the justice system, through accelerating
the administration of justice and reducing the backlog of cases, and (iv) to achieve greater
coherence to the government’s efforts to fight corruption.

The reforms and investments included in the component contribute to addressing the CountrySpecific Recommendations on improving efficiency in the public sector, in particular as
regards the functioning of the public administration and of local governments (CountrySpecific Recommendations 1 of 2019 and 4 of 2020), on promoting flexible working
arrangements (Country-Specific Recommendation 2 of 2020), on improving the efficiency
and digitalisation of the judicial system (Country-Specific Recommendation 5 of 2019 and
Country-Specific Recommendation 4 of 2020) and on anti-corruption reforms (CountrySpecific Recommendation 5 of 2019).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**H.1. Description of the reforms and investments for non** **repayable financial support**

**Subcomponent 3.4.1: Modernising the Public Sector**

Reform 1 (C3.4R1): Enhance the administrative capacity and improve the functioning of
public administration for better policy making and implementation

The objective of the reform is to improve the functioning of general public administration by
improving its human resource management framework and to restructure and enhance the
administrative capacity of the Cyprus Police.

The reform shall consist of two elements:

i) Development and implementation of an action plan to strengthen the administrative
capacity and the strategic role in human resource management of the Public Administration
and Personnel Department relating to the formulation and monitoring of implementation of
public administration and human resource management policies in the public sector, such as
policy setting, formulation of guidelines and basic principles on human resource management
matters, review of existing policies, legislation and practices, and industrial relations. In
parallel, the reform shall enhance line Ministries’ capacity to implement public administration
policies and human resource functions, while ensuring adequate accountability and
responsiveness;

ii) reorganisation and modernisation of the Cyprus Police by designing and implementing
a new model of policing and operations, a new management framework for learning and
development, and a new human resources management framework.

The implementation of the reform shall be completed by 31 December 2025.

Reform 2 (C3.4R2): Regulate flexible working arrangements in the public sector

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The objective of the reform is to increase productivity and effectiveness of the public service
through the use of flexible working arrangements, such as working remotely, partly remotely,
and part-time.

The reform shall consist in implementing flexible working arrangements in the public sector
on the basis of an assessment by the Public Administration and Personnel Department of the
recommendations of an external study of best practices and possible limitations noted by
other national public administrations. The study shall review the terms and conditions for
flexible working arrangements in the public service as applied in other jurisdictions.

The implementation of the reform shall be completed by 31 December 2024.

Reform 3 (C3.4R3): Introduce new framework for evaluation and selection process for filling
public service vacancies and new regulations for the evaluation of employees’ performance

The objective of the reform is to improve the functioning of the public service through a
review of the recruitment and promotion framework and of the performance appraisal system.

The reform shall consist of: (i) introducing a new framework in the public service for the
evaluation and selection of candidates for promotion posts, including managerial posts, based
on merit; (ii) introducing a new performance appraisal system to be used for development and
promotion purposes in order to make appraisal and promotion more transparent, fair, skillbased and effective; and (iii) improving the recruitment procedures through training, update of
the Schemes of Service (the set of requirements and duties for jobs in the public
administration) and changes in the two relevant laws for recruitment.

The implementation of the reform shall be completed by 31 March 2025.

Reform 4 (C3.4R4): Strengthen administrative capacity and transparency through the
professionalisation of public procurement and further digitalisation of its process

The objective of the reform is to increase the efficiency and effectiveness of public
procurement by introducing new procurement processes using digital tools and increasing
knowledge and expertise of personnel.

The reform shall consist in introducing an integrated fully digitalised e-procurement system
using modern technologies, thus reducing administrative burden for participants while
safeguarding accountability and transparency. It shall be accompanied by measures aimed at
the professionalisation of public procurement, such as revising the organisational structure of
the central professional public procurement function and training and certification of
procurement professionals.

The implementation of the reform shall be completed by 31 December 2025.

Reform 5 (C3.4R5): Enhancement of the capacity of the Law Office

The objective of the reform is to implement a digital transformation of the Law Office, aiming
to increase its efficiency and effectiveness, as well as the productivity, quality of work and
working conditions of the employees.

The reform shall consist in digitalising all the processes and procedures of the Law Office by
introducing an IT system (eLaw System), which shall be delivered as a complete Software-asa-Service solution. It shall include the supply, development and customisation of an existing
web-based management system to provide features such as the creation of electronic case files
and folders, case management and monitoring, internal communication and workflows,

90

tracking of cases, financial management and payments. During the implementation of the
project, a business analysis shall assess needs for process re-engineering. All existing paper
files shall be migrated into the core eLaw System.

The implementation of the reform shall be completed by 31 December 2023.

Investment 1 (C3.4I1): Rationalisation of the shift system through the implementation of a
Roster Planning System

The objective of the investment is to optimise shift patterns and deliver productivity and
efficiency gains in public sector organisations that provide services in different time shifts.

The investment shall consist in implementing a roster planning system that features day-today administration and tactical planning tools, automation of shift plans/rotations, and timely
automated communication with the employees and managers. The systemshould be interfaced
with the human resource management module of the enterprise resource planning system
being implemented in the public sector (outside of the recovery and resilience plan). The
measure shall include training of administrator users of the roster planning system.

The implementation of the investment shall be completed by 30 June 2026.

                             Investment 2 (C3.4I2): Digitalisation of the law making process

The objective of the investment is to improve the quality of regulation and increase legal
certainty and transparency by modernising the legislative drafting process and publication of
applicable legislation.

The investment shall consist in establishing a legislation preparation platform enabling easier
drafting, consolidation, management and storing of laws and regulations. The system shall
also become the official government single point of digital access for the public to all
legislation texts in an interoperable format. The investment shall cover the upload of all
existing laws and regulations into the new platform.

The implementation of the investment shall be completed by 31 December 2025.

Investment 3 (C3.4I3): Economic Policy Modelling Hub

The objective of the investment is to improve policymaking and implementation by increasing
the use of quantitative modelling techniques for regulatory impact assessment.

The investment shall consist in developing modelling tools and expertise among public
personnel to allow for better policy impact assessment. This shall be achieved by (i)
establishing an Economic Policy Modelling Hub disposing of the tools and data for policy
analysis and evaluation; (ii) transferring the policy analysis and evaluation knowledge to the
employees of the Ministry of Finance; and (iii) developing tools for big data and data
analytics.

The implementation of the investment shall be completed by 31 December 2025.

**Subcomponent 3.4.2: Local Administration and Spatial reform**

Reform 6 (C3.4R6): New legal framework for Local Authorities and relevant support

measures

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The objective of the measure is to reform the local government system in Cyprus to improve
its decision-making power and administrative autonomy, to increase efficiency of governance
and to align resources and responsibilities to ensure financial sustainability.

The reform shall consist in adopting new legislation that shall: reduce the number of
municipalities and create community clusters for the centralised provision of services in order
to improve administrative capacity; introduce a new model of administration and a new staff
structure for municipalities; transfer competences and resources from the central government
to the municipalities, in particular in the areas of issuing permits, social policy, local
infrastructure maintenance, schools and the provision of local services to the citizens; reform
the financing of municipalities; and ensure adequate legal supervision, transparency and
democratic accountability. The reform shall also include capacity building through training.

The implementation of the reform shall be completed by 31 December 2024.

Reform 7 (C3.4R7): Urban land consolidation

The objective of the reform is to reduce the pressure for municipalities’ expansion and
increasing soil seal by facilitating the utilisation of available land for construction purposes.

The reform shall consist in setting up a legislative framework for urban land consolidation
and promoting implementation of urban land consolidation master plans in selected areas or in
areas of strategic significance for the island. The reform shall also include the preparation of
an expert study, a digital platform for enabling urban land consolidation, and the preparation
of urban land consolidation pilot master plans.

The implementation of the reform shall be completed by 31 December 2025.

                      Investment 4 (C3.4I4): Enhancing e system for issuing building permits

The objective of the investment is to increase the efficiency of building permit procedures.

The investment shall consist of (i) expanding the e-application environment of the existing
Hippodamos IT system for planning and permitting, to enable all planning authorities and
building authorities (municipalities) to submit applications for planning and building permits
from a common platform; (ii) upgrading the Hippodamos system to enable applying, studying
and issuing planning and building permits digitally; and (iii) upgrading or expanding other
Hippodamos modules, such as construction contract management and administration.

The implementation of the investment shall be completed by 31 December 2024.

Investment 5 (C3.4I5): Smart cities

The objective of the investment is to coordinate on-going smart cities initiatives into a
nationwide implementation plan.

The investment shall consist in putting forward a Smart City National Master Plan, focussing
on three priority smart solutions for municipalities: smart parking, smart lighting and smart
waste collection management. The investment shall entail the design and implementation of
the smart city infrastructure (central platform) as well as the design and implementation of the
three priority smart solutions, including the installation of sensors. The investment is expected
to include 30 municipalities. The central platform shall have the necessary flexibility for
future additions of new smart cities solutions.

The implementation of the investment shall be completed by 30 June 2026.

92

Investment 6 (C3.4I6): Regeneration and Revitalisation of Nicosia Inner City

The objective of the investment is to revitalise the Nicosia inner city by attracting young
residents, new investments and fostering economic activity.

The investment shall consist of (i) the renovation of the Faneromeni School to be used as a
department of the University of Cyprus; (ii) the purchase and renovation of buildings in the
inner city to be transformed into student accommodation; and (iii) the introduction of private
sector incentives to provide student accommodation in the area.

The implementation of the investment shall be completed by 30 June 2026.

**Subcomponent 3.4.3: Efficient Justice System**

Reform 8 (C3.4R8): Efficiency of Justice

The objective of the reform is to reduce the high backlog of cases pending before the courts
and to increase the overall efficiency and quality of the justice system.

The reform shall consist in preparing an action plan to eliminate the backlog of cases and
appeals with specific annual targets and setting up a taskforce of judges, which is expected to
coordinate the implementation of the action plan to reduce the backlog of pending cases. The
action plan is expected to be completed by 31 December 2021. Pending cases shall be defined
as cases pending for more than two years. On 31 December 2020 there were: 24 777 pending
civil cases, 2 222 pending appeals of civil cases, and 475 pending appeals of administrative
cases. The reform shall also consist in implementing the revised Rules of Civil Procedure,
which were adopted by the Supreme Court on 19 May 2021 and which shall increase
efficiency in the judicial proceedings including in adjudicating cases.

The implementation of the reform shall be completed by 30 June 2026.

Reform 9 (C3.4R9): Digital transformation of courts

The objective of the reform is to address the inefficiencies of the justice system caused by the
courts operating based on manual and paper-based systems. The digitalisation of the system
shall streamline and expedite justice.

The reform shall consist in installing and operating (i) the i-justice system an interim solution
to address the most pressing needs before the e-justice is available, (ii) an integrated e-justice
system and (iii) digital audio recording in court proceedings. The e-justice system shall be
accessible to courts, lawyers, citizens, the Law Office of the Republic and the Police. It shall
introduce several functions such as digital case filing and payment, case categorisation, case
searching, document production and management, tracking and monitoring systems to support
the streaming of cases, monitoring compliance with orders and protocols, managing
allocations of cases to hearing, decision execution and management, case closing and
evidence management.

The implementation of the reform shall be completed by 31 March 2025.

Investment 7 (C3.4I7): Training of judges

The objective of the investment is to address the low level of training and lifelong learning for
judges.

93

The investment shall consist in training of judges on the revised Civil Procedure Rules and/or
other judicial trainings on various legal topics and judicial skills organised by the Cyprus
School for Judicial Training.

The implementation of the investment shall be completed by 31 December 2025.

Investment 8 (C3.4I8): Upgrading the infrastructure of courts

The objective of the investment is to address inefficiencies of the justice system caused by
inadequate court buildings, both in terms of quantity and quality.

The investment shall consist of the construction of an extension to the Famagusta District
Court building.

The implementation of the investment shall be completed by 31 December 2021.

**Subcomponent 3.4.4: Fighting Corruption**

Reform 10 (C3.4R10): Improving the legal and institutional framework for fighting
corruption

The objective of the reform is to achieve greater coherence in the fight against corruption by
implementing the national horizontal action plan against corruption.

The reform shall consist of: (i) legislation to protect whistle-blowers, to enhance transparency
in public decision-making processes and to prevent conflict of interest, (ii) establishment and
operation of an independent authority against corruption, which shall coordinate the efforts of
all bodies engaged in the fight against and prevention of corruption and shall supervise the
timely implementation of actions by the different competent services (iii) anti-corruption
public awareness and trainings and (iv) reinforcement of the Internal Audit Units in all the
Ministries and the Internal Audit Service.

The implementation of the reform shall be completed by 30 June 2024.

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**-**
**H.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone /**<br>**Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~155~~<br>|~~C3.4R1~~<br>Enhance the<br>administrative<br>capacity and<br>improve the<br>functioning of<br>public<br>administration<br>for better<br>policy making<br>and<br>implementatio<br>n <br>|~~Milestone~~<br>|~~Action Plan on~~<br>the efficient<br>management of<br>human resource<br>issues in the<br>national public<br>administration<br> <br>|~~Adoption of the~~<br>Action Plan by<br>the Council of<br>Ministers<br>|~~-~~<br>|~~-~~<br>|~~-~~<br>|~~Q1~~<br>|~~2022~~<br>|~~The Council of Ministers has adopted an Action Plan that~~<br>shall include:<br>- Guidelines, templates and implementation support by the<br>Public Administration and Personnel Department (PAPD)<br>to line ministries’ administration in relation to human<br>resource management issues such as re-organisation and re-<br>structuring, simplification of procedures and workforce<br>planning;<br>- Implementation of a revised organisational structure of<br>PAPD<br>- Learning and Development Plan for PAPD staff;<br>- Training Plan for line ministries’ administration <br>|
|~~156~~|~~C3.4R1~~<br>Enhance the<br>administrative<br>capacity and<br>improve the<br>functioning of<br>public<br>administration<br>for better<br>policy making<br>and<br>implementatio<br>n|~~Milestone~~|~~New human~~<br>resources<br>management<br>framework for<br>Cyprus Police|~~Adoption by the~~<br>Chief of Police<br>and the<br>Permanent<br>Secretary of the<br>Ministry of<br>Justice and<br>Public Order,<br>and entry into<br>force|~~-~~|~~-~~|~~-~~|~~Q4~~|~~2023~~|~~The new human resources management framework for~~<br>Cyprus Police has entered into force and shall cover<br>following areas:<br>- Analysis and creation of job descriptions<br>- Recruitment<br>- Motivation<br>- Training and Development<br>- Compensation and Benefits<br>- Labour and employee relations and communication<br>- Management of retired members<br>- Safety and Health<br>- Human resource management strategy|
|157|C3.4R1<br>Enhance the|Milestone|Implementation<br>of the Action|Final report<br>approved by the|-|-|-|Q4|2025|The Action Plan has been implemented, including:<br>|

95

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||administrative<br>capacity and<br>improve the<br>functioning of<br>public<br>administration<br>for better<br>policy making<br>and<br>implementatio<br>n||Plan on the<br>efficient<br>management of<br>human resource<br>issues in the<br>national public<br>administration|Council of<br>Ministers on the<br>implementation<br>of the Action<br>Plan||||||- Guidelines and manuals for line ministries’ administration<br>regarding recruitment procedures, disciplinary procedures,<br>workforce planning, re-organisation and simplification of<br>processes reviews<br>- Legislative amendments where appropriate<br>- Training of staff in line ministries’ administration|
|158|C3.4R2<br>Regulate<br>flexible<br>working<br>arrangements<br>in the public<br>sector|Milestone|Decision on<br>flexible working<br>arrangements in<br>the public sector|Decision by the<br>Council of<br>Ministers|-|-|-|Q1|2023|A study regarding flexible working arrangements in the<br>public sector shall be conducted. The PAPD shall assess the<br>study’s recommendations considering appropriate<br>safeguards aiming at improving the effectiveness of the<br>public service. Following the assessment of the study’s<br>recommendations, a decision regarding their<br>implementation shall be taken by the Council of Ministers.|
|159|C3.4R2<br>Regulate<br>flexible<br>working<br>arrangements<br>in the public<br>sector|Milestone|Implementation<br>of flexible<br>working<br>arrangements|Final report by<br>the PAPD on<br>implementation<br>of the Council of<br>Ministers<br>Decision|-|-|-|Q4|2024|Implementation of the decision of the Council of Ministers,<br>through, where relevant, amendment of law/regulations,<br>communication of policies and trainings, on the basis of an<br>action plan developed by the Public Administration<br>Personnel Department.|
|160|C3.4R3<br>Introduce new<br>framework for<br>evaluation and<br>selection|Milestone|Entry into force<br>of legislation for<br>the evaluation<br>and selection<br>process for|Provision in the<br>relevant law(s)<br>and regulations<br>indicating their<br>respective entry|-|-|-|Q4|2021|The main elements shall be:<br>(i) entry into force of a law providing for the evaluation and<br>selection of candidates to fill the public service promotion<br>posts, including managerial posts, with new criteria and<br>methods based on objective assessment and merit, and|

96

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||process for<br>filling public<br>service<br>vacancies and<br>new<br>regulations for<br>the evaluation<br>of employees’<br>performance<br>||public service<br>vacancies and<br>regulations for<br>employees’<br>performance<br>evaluation.<br>|into force<br>||||||amendment of the Public Service Law where deemed<br>necessary, and <br>(ii) entry into force of new regulations for implementing a<br>new performance appraisal system for public employees, to<br>be used for development and promotion purposes in order<br>to make the performance appraisal procedure and the<br>promotion mechanism more transparent, fair, skill-based<br>and effective<br>|
|~~161~~|~~C3.4R3~~<br>Introduce new<br>framework for<br>evaluation and<br>selection<br>process for<br>filling public<br>service<br>vacancies and<br>new<br>regulations for<br>the evaluation<br>of employees’<br>performance|~~Milestone~~|~~New framework~~<br>for performance<br>evaluation and<br>filling of<br>vacancies in the<br>public service.|~~Entry into use of~~<br>the new<br>framework|~~-~~|~~-~~|~~-~~|~~Q1~~|~~2025~~|~~Civil servants’ performance shall be evaluated and public~~<br>service vacancies filled in accordance with the new legal<br>framework, following its effective implementation<br>including through training of relevant employees.|
|162|C3.4R4<br>Strengthen<br>administrative<br>capacity and<br>transparency<br>through the<br>professionalisa|Milestone|New integrated<br>e-procurement<br>system|First calls for<br>tender have been<br>launched under<br>the new e-<br>procurement<br>system|-|-|-|Q4|2025|The new integrated e-procurement system shall be fully<br>operational including all development, testing and training<br>of users.<br> <br>The main functionalities of the system shall be:<br>- support the only once principle for submission of data by<br>private users|

97

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||tion of public<br>procurement<br>and further<br>digitalisation<br>of its process|||||||||- statistical reporting<br>- support the use of emerging technologies that may be used<br>by both contracting authorities and economic operators in<br>their administrative functionalities<br>- Facilitate the administrative work of the contracting<br>authorities<br>- User-friendly interface to economic operators with<br>emphasis on SMEs<br>- Publication of open data regarding the public procurement<br>procedures<br>- Provide the contracting authorities and the decision-<br>makers information regarding public procurement<br>procedures, throughout the project life cycle.|
|163|C3.4R5<br>Enhancement<br>of the capacity<br>of the Law<br>Office|Milestone|New IT system<br>for the Law<br>Office|Entry into<br>service of the<br>new IT system|-|-|-|Q4|2023|Full operationalisation of a Software-as-a-Service solution<br>for the Law Office that shall have the following features:<br>- creation of electronic case files and folders,<br>- case management and monitoring,<br>- internal communication and work flows,<br>- tracking of cases, financial management and payments,<br>- digitalisation of paper files.<br>Training of users has been concluded.|
|164|C3.4I1<br>Rationalisation<br>of the shift<br>system through<br>the<br>implementatio<br>n of a Roster<br>Planning<br>System|Milestone|Implementation<br>of a new Roster<br>Planning System<br>in public sector<br>organisations|Entry into<br>service of the<br>new Roster<br>Planning System|-|-|-|Q2|2026|Completion of development and entry into use of the Roster<br>Planning System. Main functionalities of the System shall<br>be:<br>- day-to-day administration and tactical planning tools, with<br>automated shift planning and communication to the<br>employees and managers;<br>- workforce and shift management, with monitoring of<br>labour costs, absences and overtimes.|

98

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|165<br>|C3.4I2<br>Digitalisation<br>of the law-<br>making process<br>|Milestone<br>|Implementation<br>of the Cyprus<br>Legislation<br>Preparation<br>Platform<br>|Entry into<br>service of the<br>new system<br>|-<br>|-<br>|-<br>|Q1<br>|2025<br>|Entry into operation of the Platform and completion of<br>training for administrators and privileged users.<br> <br>The fully functioning Legislation Preparation Platform shall<br>enable:<br>- drafting and management of bills through a web editor,<br>with possibility to export in XML format at all stages of the<br>law preparation process,<br>- a central database to store and disseminate the legal texts<br>as open data though Application Programming Interfaces,<br>as well as in bulk;<br>- a tool to consolidate laws and amendments.<br>|
|~~166~~<br>|~~C3.4I2~~<br>Digitalisation<br>of the law-<br>making process<br>|~~Milestone~~<br>|~~Digitalisation of~~<br>laws &<br>regulations in the<br>new platform<br>|~~Public~~<br>announcement<br>on the platform<br>|~~-~~<br>|~~-~~<br>|~~-~~<br>|~~Q4~~<br>|~~2025~~<br>|~~All past laws and regulations have been uploaded into the~~<br>new platform, so that all legislation is available online on a<br>governmental platform.<br>|
|~~167~~<br>|~~C3.4I3~~<br>Economic<br>Policy<br>Modelling Hub<br>|~~Milestone~~<br>|~~Setting up a~~<br>Modelling Hub<br>for Economic<br>Policy Analysis<br>|~~Entry into~~<br>service of the<br>Hub<br> <br>|~~-~~<br>|~~-~~<br>|~~-~~<br>|~~Q4~~<br>|~~2023~~<br>|~~Full operationalisation and equipment of the Hub including~~<br>appointment of the team of scientific staff. The team shall<br>consist of experts on macroeconometric models,<br>econometricians, data analytics experts and economists.<br>|
|~~168~~|~~C3.4I3~~<br>Economic<br>Policy<br>Modelling Hub|~~Target~~|~~Number of~~<br>developed<br>impact<br>assessment<br>models and data<br>analysis tools|~~-~~|~~Number~~|~~0 ~~|~~20~~|~~Q4~~|~~2025~~|~~Complete development of at least 20 macro-econometric~~<br>impact assessment models and new data analytics tools for<br>the Cyprus economy based on different methodologies shall<br>be simulated, tested and applied for economic policy<br>analysis and forecasting.|
|169|C3.4R6<br>New legal<br>framework for<br>Local|Milestone|New legal<br>framework on<br>local authorities|Provision in the<br>law indicating<br>the entry into<br>force of the|-||-|Q2|2024|The intervention shall consist of the entry into force of three<br>laws: Municipalities Law, Communities (Amending) Law<br>and the Law on District Local Government Organisations).<br>|

99

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Authorities and<br>relevant<br>support<br>measures|||legislation||||||The new legal framework shall entail:<br>- Reduction in the number of municipalities<br>- Creation of community clusters for the provision of<br>services<br>- Transfer of new competences and funds from central<br>government to the municipalities<br>- New system of financing of municipalities<br>- Rules on legal supervision, transparency and<br>accountability<br>- Improvement of the efficiency of water supply, sewerage<br>and solid waste management as well as permitting by<br>creating five District Organisations for Local<br>Administration.|
|170|C3.4R6<br>New legal<br>framework for<br>Local<br>Authorities and<br>relevant<br>support<br>measures|Target|Number of local<br>authority staff<br>participating in<br>capacity building|-|Number|0|500|Q4|2024|Completion of a series of thematic capacity building<br>programmes for local administration, providing training to<br>at least 500 participants (members and staff of local<br>authorities).|
|171|C3.4R7<br>Urban land<br>consolidation|Milestone|Entry into force<br>of the law on<br>urban land<br>consolidation|Provision in the<br>law indicating<br>the entry into<br>force of the law|-|-||Q3|2022|Entry into force of the law on urban land consolidation with<br>the aim to reduce urban sprawl through rational utilisation<br>of existing residential areas|
|172|C3.4R7<br>Urban land<br>consolidation|Target|Number of<br>master plans for<br>urban planning<br>in residential<br>zones|-|Number|0|10|Q4|2025|Master plans for urban planning in residential zones have<br>been drafted, published and approved for utilisation in<br>selected areas or in areas of strategic significance. The<br>master plans shall integrate and redistribute into land<br>parcels segmented and inaccessible land (within the|

100

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||development limits of an area).|
|173|C3.4I4<br>Enhancing e-<br>system for<br>issuing<br>building<br>permits|Milestone|Enhancement of<br>the e-application<br>environment of<br>the Hippodamos<br>System|Applications<br>being received<br>through the<br>enhanced e-<br>application<br>environment|-|-|-|Q4|2022 <br>|Completion of the enhancement of the e-application<br>environment of the existing Hippodamos system to enable<br>the submission of applications for planning and building<br>permits for all planning authorities and building authorities<br>(municipalities) from a common platform.|
|174|C3.4I4<br>Enhancing e-<br>system for<br>issuing<br>building<br>permits|Milestone|Enhancement of<br>planning and<br>control and<br>project<br>management<br>functionalities of<br>Hippodamos|Fully digital<br>process for<br>permit issuance<br>and construction<br>contract<br>management|-|-|-|Q4|2024|Completion of the enhancement of the planning and control<br>tool, project management tool and of the upgrade of the<br>hardware and software of existing Hippodamos System to<br>support the additional functionalities.|
|175<br>|C3.4I5<br>Smart cities<br>|Target<br>|Installation of<br>smart sensors in<br>service as part of<br>the smart cities<br>initiative<br>|-<br>|Number<br>|0 <br>|97<br>000<br>|Q4<br>|2024<br>|Full operationalisation of at least 97 000 smart sensors as<br>part of the smart cities initiative consisting of smart parking<br>sensors, smart lighting sensors, and smart waste<br>management sensors delivered and installed in<br>municipalities and connected to the central smart cities<br>platform.<br>|
|~~176~~|~~C3.4I5~~<br>Smart cities|~~Target~~|~~Development of~~<br>mobile<br>applications<br>developed as part<br>of the smart<br>cities initiative|~~-~~|~~Number~~|~~0 ~~|~~3 ~~|~~Q2~~|~~2026~~|~~Development of three mobile applications (for smart~~<br>parking, smart lighting, smart waste management), which<br>shall be available for download by users.|
|177|C3.4I6<br>Regeneration<br>and<br>Revitalisation|Target|Rooms<br>renovated and<br>converted to<br>student dorms|-|Number|0|250|Q4|2024|At least 250 rooms in Nicosia’s inner city have been<br>renovated and converted to student dorms|

101

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||of Nicosia<br>Inner City||||||||||
|178|C3.4I6<br>Regeneration<br>and<br>Revitalisation<br>of Nicosia<br>Inner City|Target|Rooms<br>renovated and<br>converted to<br>student dorms|-|Number|250|560|Q2|2026|At least 560 rooms in Nicosia’s inner city have been<br>renovated and converted to student dorms|
|179<br>|C3.4I6<br>Regeneration<br>and<br>Revitalisation<br>of Nicosia<br>Inner City<br>|Milestone<br>|Renovation of<br>Faneromeni<br>School<br>|Completion of<br>the renovation of<br>Faneromeni<br>school<br>|-<br>|-<br>|-<br>|Q2<br>|2026<br>|Faneromeni School has undergone  extensive renovation<br>and complete anti-seismic upgrade to house the School of<br>Architecture of the University of Cyprus and is ready for<br>use <br> <br>|
|~~180~~<br>|~~C3.4R8~~<br>Efficiency of<br>Justice<br>|~~Milestone~~<br>|~~Entry into force~~<br>of new Rules of<br>Civil Procedure<br>|~~Provision in new~~<br>Rules of Civil<br>Procedure<br>(published in the<br>Official Gazette)<br>indicating the<br>entry into force<br>of the Rules of<br>procedures (1<br>September 2023)<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q3~~<br>|~~2023~~<br>|~~Implementation of the new Rules of Civil Procedure for the~~<br>new cases submitted to the court as from 1 September 2023.<br>The new Rules of Civil Procedure shall modernise the<br>hearing of cases in order to deliver a less costly, more<br>accessible and timelier service to parties.<br>|
|~~181~~|~~C3.4R8~~<br>Efficiency of<br>Justice|~~Target~~|~~Reducing the~~<br>backlog of cases<br>and appeals|~~- ~~|~~% ~~<br>(Percenta<br>ge)|~~0 ~~|~~20~~|~~Q2~~|~~2024~~|~~Reduction of the backlog of cases and appeals pending for~~<br>over two years before the District Courts and the Supreme<br>Court by 20% from the 31 December 2020 level, as verified<br>by an Annual Progress Report of the Action Plan to reduce<br>backlog.|
|182|C3.4R8|Target|Further reducing|-|%|20|40|Q2|2026|Reduction of the backlog of cases and appeals pending for|

102

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Efficiency of<br>Justice||the backlog of<br>cases and<br>appeals||(Percenta<br>ge)|||||over two years before the District Courts and the Supreme<br>Court by 40% from the 31 December 2020 level, as verified<br>by an Annual Progress Report of the Action Plan to reduce<br>backlog.|
|183|C3.4R9<br>Digital<br>transformation<br>of courts|Milestone|e-justice system|Verification of<br>the contract and<br>acceptance of the<br>deliverables by<br>the project teams<br>for the two<br>systems. Both<br>systems available<br>through the<br>court’s website|-|-|-|Q4|2022|Installation and full operation of the e-justice system and<br>completion of on-site operational support of the i-justice<br>system. Both systems shall be available through the court’s<br>website.|
|184<br>|C3.4R9<br>Digital<br>transformation<br>of courts<br>|Milestone<br>|Digital audio<br>recording in<br>court<br>proceedings<br>|Verification of<br>the contract and<br>acceptance of the<br>deliverables by<br>the project team<br>for the system.<br>|-<br>|-<br>|-<br>|Q1<br>|2025<br>|Installation and full operation of digital audio recording in<br>court proceedings.<br>|
|~~185~~|~~C3.4I7~~<br>Training of<br>judges|~~Target~~|~~Training of~~<br>judges|~~- ~~|~~Number~~|~~0 ~~|~~110~~|~~Q4~~|~~2025~~|~~At least 110 (out of 130) judges have completed trainings~~<br>on the new Civil Procedure Rules and other judicial skills.|
|186<br>|C3.4I8<br>Upgrading the<br>infrastructure<br>of courts<br>|Milestone<br>|Extension of the<br>Famagusta<br>District Court<br>|Project<br>management<br>team certifies the<br>completion of the<br>construction.<br>|- <br>|- <br>|- <br>|Q4<br>|2021<br>|Completion of construction of the extension to the<br>Famagusta District Court building to support the operation<br>of new courtrooms to try in addition to criminal also civil<br>cases.<br>|
|~~187~~|~~C3.4R10~~<br>Improving the|~~Milestone~~|~~Entry into force~~<br>of the law|~~Provision of the~~<br>law indicating|~~- ~~|~~- ~~|~~- ~~|~~Q1~~|~~2022~~|~~The Independent Authority against Corruption has been~~<br>established on the basis of the entry into force of the|

103

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||legal and<br>institutional<br>framework for<br>fighting<br>corruption||establishing the<br>Independent<br>Authority against<br>Corruption|the entry into<br>force of the law<br>and start of<br>operation of the<br>Independent<br>Authority against<br>Corruption with<br>key management<br>positions filled<br>and staff<br>recruited.||||||corresponding law and is operational. The Authority shall<br>coordinate the efforts of all bodies engaged in the fight<br>against and prevention of corruption and shall supervise the<br>timely implementation of actions by the different competent<br>services.|
|188|C3.4R10<br>Improving the<br>legal and<br>institutional<br>framework for<br>fighting<br>corruption|Milestone|Entry into force<br>of the law on<br>Transparency in<br>Decision-Making<br>and Related<br>Matters|Provision of the<br>law indicating<br>the entry into<br>force of the law|-|-|-|Q4|2021|Entry into force of the law on Transparency in Decision-<br>Making and Related Matters, including provisions to<br>prevent conflict of interest. The law shall create the<br>obligation to publicise contacts made between persons<br>interested in being involved in public decision-making<br>procedures and officials or members of the State service or<br>of the wider public sector or with employees for the benefit<br>of officials who, by their very position, have competence or<br>possibility of initiating such procedures or formulating their<br>content or contributing or determining the final outcome of<br>such procedures. Information on such a contact, as well as<br>its content and purposes, shall be officially recorded and be<br>publicly available.|
|189|C3.4R10<br>Improving the<br>legal and<br>institutional<br>framework for<br>fighting|Milestone|Entry into force<br>of the law to<br>protect whistle-<br>blowers|Provision  of the<br>law indicating<br>the entry into<br>force of the law|-|-|-|Q4|2021|Entry into force of a law to protect whistle-blowers<br>reporting fraud and corruption from internal sanctions. The<br>law shall include supplementary provisions on the<br>protection of persons reporting acts of corruption both in<br>the public and the private sectors (whistle-blowers, persons<br>not involved in the acts), further to the protection already|

104

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone /<br>Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone /**<br>**Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||corruption|||||||||provided for in the Protection of Witnesses Law 95(I)/2001.<br>The law shall also provide measures of leniency for those<br>who are involved in acts of corruption, but voluntarily<br>report to the police and/or offer cooperation with the<br>authorities resulting in the full investigation and<br>prosecution of the case.|

105

**H.3. Description of the reforms and investments for the loan**

Investment 9 (C3.4I9): Aid Scheme for the private and public sector for certification with ISO
37001 (Anti Bribery)

The objective of the investment is to contribute to the fight against corruption by introducing
to the private and public sector the accreditation ISO 37001, which shall help in increasing
transparency, stamping out bribes and creating an ethical business culture.

The investment shall consist of grant support to the private and public sector, including local
governments, for consulting services and certification against bribery in accordance with the
standard ISO 37001.

The implementation of the investment shall be completed by 31 December 2025.

106

**H.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~190~~|~~C3.4I9~~<br>Aid Scheme<br>for the<br>private and<br>public sector<br>for<br>certification<br>with ISO<br>37001 (Anti<br>Bribery)|~~Target~~|~~ISO 37001 anti-~~<br>bribery<br>management<br>systems|~~- ~~|~~Number~~|~~0 ~~|~~120~~|~~Q4~~|~~2025~~|~~At least 120 organisations are ISO accredited~~<br>for the Standard “ISO 37001 ANTI-BRIBERY<br>MANAGEMENT SYSTEMS” due of the<br>support granted|

107

**I.** **COMPONENT** **3.5:** **S** **AFEGUARDING** **F** **ISCAL AND** **F** **INANCIAL** **S** **TABILITY**

This component of the Cypriot recovery and resilience plan addresses the challenges of fiscal
and financial vulnerabilities, including macroeconomic imbalances related thereto. The aim is
to safeguard financial stability by reducing legacy risks in the banking sector, putting in place
measures against high private indebtedness, and improving supervision in the non-bank
sector. To ensure fiscal stability, Cyprus aims at combating tax evasion, tax avoidance and
aggressive tax planning; and providing policy makers with comprehensive data in order to
design a fair tax system. The envisaged measures are expected to make revenue collection
more efficient and Cyprus’ tax system fairer, reducing the spill-over effects from aggressive
tax planning.

The component supports addressing the Country-Specific Recommendations on financial
stability and private indebtedness (Country-Specific Recommendations 2 and 5 of 2019), and
on addressing features of the tax system that facilitate aggressive tax planning by individuals
and multinationals (Country-Specific Recommendation 4 of 2020 and Country-Specific
Recommendation 1 of 2019).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**I.1.** **Description of the reforms and investments for non-repayable financial support**

**Safeguarding financial stability**

Reform 1 (C3.5R1): Legal Framework for crisis management for credit institutions

The objective of the measure is to improve the resilience of the banking sector by introducing
a framework for a coherent and concrete procedure for supporting credit institutions facing
financial difficulties.

The reform shall consist in (i) reviewing and amending the national insolvency framework for
credit institutions to increase its effectiveness and efficiency, in line with best European
practices; and (ii) laying down a framework for precautionary recapitalisation of credit
institutions and for government stabilisation tools for the purpose of participating in the
resolution of a credit institution.

The implementation of the reform shall be completed by 30 September 2023.

                                         Reform 2 (C3.5R2): Framework and Action Plan for addressing non performing loans

The objective of the measure is to address financial risks related to legacy non-performing
loans in the banking sector by continuing efforts to improve the asset quality of banks and
strengthening the working environment for servicing of loans.

The reform shall consist in (i) implementing an action plan to address the remaining stock of
legacy non-performing loans and (ii) adopting a package of three amending laws regarding
credit acquiring companies and servicers (placing of loan servicers under regulation and
supervision by the Central Bank; granting access for loan servicers and credit acquiring
companies to the Land Registry; and aligning notification requirements in case of purchase of
a loan by a credit acquiring company). A progress report on the action plan shall be prepared

108

by 30 June 2023 and approved by the Council of Ministers, tracking the reduction of nonperforming loans in the banking sector towards the indicative reference values of 6% gross
and 3% net non-performing loans ratio [15] and proposing policy measures where appropriate.

The implementation of the reform shall be completed by 30 June 2023.

Reform 3 (C3.5R3): Strategy for addressing inadequacies of the property transaction system
(title deeds)

The objective of the reform is to address inefficiencies in the system of issuing and
transferring title deeds, which results in property rights not being defined, complicates
foreclosure procedures and hinders the liquidation of collateral.

The reform shall consist in: (i) examination and issuance of title deeds for pending cases, (ii)
extension of the new planning and building permit policy, currently up to two residential
units, to four residential units in a plot, which shall reduce the time needed to issue building
and spatial permits, (iii) review of the Streets and Buildings Regulation Law to introduce the
right incentives for the supervising engineer to further discourage irregularities that would
result in title deeds not being issued, (iv) amendment of the Sale of Property (Specific
Performance) Law, which shall ensure in advance that the transfer of immovable property is
executed as soon as the buyer fulfils his/her contractual obligations.

The implementation of the reform shall be completed by 31 December 2023.

Reform 4 (C3.5R4): New legal framework and system of exchange of data and credit bureaus

The objective of the measure is to fight high private indebtedness by improving the
assessment of credit risk for new lending through evolvement of the credit registry, to enable
the market to offer services such as credit scoring in full conformity with data protection
rules.

The reform shall consist in amending the existing system for exchange of credit data, under
which a private company owned by the Association of Cyprus Banks is the credit registry, so
as to allow the provision of credit scoring services. The main elements of the amendment
shall be to alleviate the legal uncertainty regarding the ownership of the system and the
distinct roles of the credit registry and credit bureaus, to ensure continuation of the duty to
collect data on credit facilities by credit institutions and to provide data from the Insolvency
Department, and to define the terms and conditions of access to data and its protection.

The implementation of the reform shall be completed by 31 December 2024.

Reform 5 (C3.5R5): Action plan for the development of a liability monitoring register

The objective of the measure is to improve the ability of the authorities to design and
implement targeted policies to prevent and manage the stock of private debt. This shall be
pursued by creating a liabilities monitoring register covering the amounts of all debts to all
types of creditors.

The reform shall consist in implementing an action plan that shall involve the design and
development of the credit liability register to generate credit scores for individuals and legal

15 These reference values are based on the definition of non-performing loans as used in the “Monitoring Report
on Risk Reduction Indicators” (November 2020), available at https://www.consilium.europa.eu/media/
46978/joint-risk-reduction-monitoring-report-to-eg_november-2020_for-publication.pdf

109

entities, the development of a credit rating system for individuals and legal entities, and the
connection of the system with other credit rating agencies.

The implementation of the reform shall be completed by 31 December 2024.

Reform 6 (C3.5R6): Reinforcing and strengthening the insolvency framework

The objective of this reform is to strengthen the implementation of the insolvency framework,
promote the use of insolvency schemes and tools, and ensure full and effective functioning of
the Department of Insolvency.

The reform shall consist in (i) implementing the remaining measures and actions specified in
the 2018 Action Plan that were not already implemented and (ii) setting-up digital systems
necessary for improving the work of the Department of Insolvency and which promote the use
of the insolvency tools. The Action Plan was approved by the Council of Ministers in 2018,
and reflects the national policy for the field of insolvency. This reform shall include actions
such as digitalisation of systems (enhancement of existing systems and introduction of new
ones), training delivered to the staff of the Department of Insolvency, implementation of a
Customer Service line and a web portal for customers, and full implementation of the
regulatory framework for Insolvency Practitioners.

The implementation of the reform shall be completed by 30 June 2025.

Reform 7 (C3.5R7): Strategy for Combating Financial Illiteracy

The objective of the measure is to promote financial literacy. It aims at enhancing financial
education within the general population, improve financial decision making, correct wrong
attitudes and biases, support more informed and financially responsible citizens and
ultimately, help improve debt repayment discipline.

The reform shall consist in preparing a strategy for combating financial illiteracy by: (i)
identifying the issues of financial illiteracy (ii) reviewing the international literature on the
topic, and (iii) providing an action plan for implementation. The Strategy shall include
concrete goals, measurable objectives, specify the channels for promoting financial literacy
and include specific actions (both short-term and long terms measures) for implementation.
The reform shall also include full implementation of the short-term measures of the strategy.

The implementation of the reform shall be completed by 31 December 2023.

Reform 8 (C3.5R8): Enhancing supervision of Insurance and Pension Funds

The objective of the measure is to enhance the supervision of the insurance and pension
funds.

The reform shall consist in (i) increasing the administrative capacity of the supervisory
authorities, (ii) preparing and implementing the necessary tools for ensuring compliance with
the regulatory frameworks conveyed to the European Insurance and Occupational Pensions
Authority (EIOPA) (such as the revised Institutions for Occupational Retirement Provision
(IORP II) Directive) and (iii) undertaking specific supervisory actions according to plans as
conveyed to EIOPA, for ensuring financial stability and for protecting the interests of pension
funds members and insurance policy holders.

The Department of the Registrar of Occupational Retirement Benefit Funds (RORBF)
supervising the pension sector, shall increase permanent staff by 13 persons. The Insurance

110

Companies Control Service (ICCS) supervising the insurance sector shall increase its
permanent personnel by three persons.

The implementation of the reform shall be completed by 31 December 2023.

Investment 1 (C3.5I1): Enhancement of the Supervisory Function of Cyprus Securities and
Exchange Commission

The objective of the measure is to enhance the supervisory capacity of Cyprus Securities and

–
Exchange Commission (CySec) through digitalisation allowing for better supervision of
transactions.

The investment shall consist in developing an advanced digital system, based on cloud
architecture, covering the supervision needs of European Market Infrastructure Regulation
(EMIR), the Securities Financing Transactions Regulation (SFTR) and the Markets in
Financial Instruments Regulation (MiFIR). The new system shall support the following
features: (i) connect to the European Securities and Markets Authority (ESMA) hub; load and
pre-process transaction data, (ii) aggregate and perform queries on data to generate regulatory
insights (iii) generate on-schedule and ad-hoc reports.

The implementation of the investment shall be completed by 31 December 2023.

**Safeguarding fiscal stability**

Reform 9 (C3.5R9): Improving tax collection and effectiveness of the Tax Department

The objective of the measure is to make tax collection more efficient and effective, through a
higher level of digitalisation and tax compliance, and improve customer service.

The reform shall consist in integrating different tax units, procedures and processes, so as to
offer single point of taxpayer service, legislative changes and implementing a new IT system
and digitising the Tax department. The latter shall include: (a) a single registration to the tax
base and Taxisnet (for electronic submission of Income Tax Returns by Individuals, Legal
Persons and Employers); (b) an integrated tax auditing process based on risk assessment; (c)
an integrated refunds audit; (d) an integrated and enhanced single point of service, including
the direct payment of VAT and connecting businesses to a server held within the Tax
Department, without the use of specialised mechanisms; (e) a process to issue single tax
clearances; (f) possibility for immediate adjustments of the system to accommodate any
changes in the legislation and/or procedures and extension of secure interfaces with other
information systems; (g) data analysis capabilities and (h) scanning and electronic storage of
all taxpayer paper documents regarding the real estate (immovable property) and capital gains
with relevant security, integrity and confidentiality parameters. The newly acquired building
for the integrated Nicosia District Office and Large Taxpayers’ Office shall enhance the
efforts of integrating the district tax offices in the capital, from five different office-buildings
at different locations deemed technologically unsuitable previously, and allow the provision
of taxpayer services from one single location in Nicosia district. The legislative changes shall
include: (a) a recently introduced legislation to implement the mandatory submission of tax
returns by every natural person with income as defined in Article 5 of the Income Tax Law,
regardless of the threshold starting from the tax year 2020 (subject to exceptions); and (b)
criminalising the non-payment of income taxes.

The implementation of the reform shall be completed by 31 December 2025.

111

Reform 10 (C3.5R10): Addressing Aggressive Tax Planning

The overall objective of the measures under the reform is to increase the effectiveness,
efficiency and fairness of the tax system by combatting tax evasion and aggressive tax
planning by Multinational Enterprises.

The measure shall consist in three different reform sub-measures.

The first reform sub-measure shall consist in imposing a withholding tax on outbound
payments of interest, dividends and royalty payments and the introduction of a further
corporate tax residency test based on the incorporation of each entity. A withholding tax shall
be imposed to jurisdictions in Annex I of the EU list of non-cooperative jurisdictions on tax
matters, as a first step through enactment of the Law by 31 December 2021, providing for its
entry into force by 31 December 2022.

The corporate tax residency test shall be additional to the management and control test. It
shall be enacted by 31 December 2021, providing for its entry into force by 31 December
2022. The first test shall be the management and control and, in cases where a company is
incorporated in Cyprus but its management and control is done from another jurisdiction, it
shall be considered as a Cyprus tax resident and shall be taxed in accordance with the relevant
provision of the Income Tax Law, provided that the company is not a tax resident elsewhere
(to avoid dual residency status).

A second reform sub-measure shall consist in introducing a withholding tax on outbound
payments of interest, dividends and royalty payments to low tax jurisdictions. In respect of
interest and royalty payments, the Cypriot authorities may explore instead the approach of
applying non-deductibility. Such legislative change shall enter into force by 31 December
2024.

As a third reform sub-measure, Cyprus shall assess the effectiveness of the overall set of
measures related to aggressive tax planning, via an independent evaluation to be completed by
31 December 2024. This evaluation shall assess the Cyprus tax framework holistically
including all measures adopted by then. The evaluation shall lead to policy action to be
undertaken by Cyprus to address any shortcomings identified, including in the form of
legislative changes, which shall enter into force by 30 June 2026.

The implementation of the reform shall be completed by 30 June 2026.

Investment 2 (C3.5I2): Modernisation of Customs and Electronic Payment System

The objective of the measure is to develop and implement the electronic systems envisaged
under the Union Customs Code. The measure is expected to simplify and expedite customs
formalities and reduce the administrative cost for all stakeholders and thus make revenue

collection more efficient.

The investment shall consist in developing and putting into operation twelve systems,
consisting in three different types: (i) the Declaration Systems (such as Manifest, Automated
Import, Transit, Automated Export and Excise Movement Control System), which shall
communicate with the Operational Components, the Management Components and External
Interfaces using the Integration Layer; (ii) the Operational Systems, which shall consist of the
Risk Analysis, Accounting, Audit, Tariff, Customs Warehouse, Case Management,
Surveillance and Quota and (iii) the Management Systems, which shall consist of the
Business Rule Management, Business Process Management, Reference Data Management,
Internal IAM and Reporting.

The implementation of the investment shall be completed by 31 December 2025.

112

**I.2.** **Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support**

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~191~~|~~C3.5R1 Completing~~<br>the legal framework<br>for Crisis<br>Management for<br>Credit Institutions|~~Milestone~~|~~Entry into force~~<br>of the<br>amendment of<br>the national<br>insolvency<br>framework for<br>credit<br>institutions, and<br>introduction of<br>government<br>tools for<br>preservation of<br>financial<br>stability|~~Provision in~~<br>the laws<br>indicating<br>their entry<br>into force of<br>the|~~- ~~|~~- ~~|~~- ~~|~~Q3~~|~~2023~~|~~Entry into force of the following two legislative~~<br>packages:<br>(a) the 'Insolvency of Credit Institutions' law<br>which shall introduce flexibility and necessary<br>tools to competent authorities for the effective<br>liquidation of insolvent credit institutions and (b)<br>the Financial Stability Law and Financial Support<br>under Resolution Law, which shall lay the<br>framework for government intervention, in<br>particular through precautionary recapitalisation of<br>a credit institution and through government<br>stabilisation tools for the purpose of participating<br>in the resolution of an institution.|
|192|C3.5R2 Framework<br>and Action Plan for<br>addressing NPLs|Milestone|Entry into force<br>of the package<br>of amending<br>laws regarding<br>credit acquiring<br>companies<br>(CAC) and<br>credit servicers<br>to improve the<br>working<br>environment for<br>non-performing<br>loans<br>management|Provision in<br>the law<br>indicating<br>the entry<br>into force of<br>the<br>respective<br>laws|-|-|-|Q4|2021|Entry into force of the following three laws:<br>(a) The Credit Facilities Purchase and Related<br>Matters (Amending) Law of 2021, which shall put<br>non-performing loan servicers under regulation<br>and supervision by the Central Bank;<br> (b) The Immovable Property (Transfer,<br>Registration and Valuation) (Amending) Law of<br>2021, which shall give access for non-performing<br>loan servicers and credit acquiring companies to<br>the Land Registry<br>(c) Evidence (Amending) Law 2020, which shall<br>align notification requirements in case of purchase<br>of a loan by a credit acquiring company.|

113

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|193<br>|C3.5R3<br>Strategy for<br>addressing<br>inadequacies of the<br>property transaction<br>system (title deeds)<br>|Target<br>|Reduction of<br>backlog of cases<br>for issuance of<br>title deed<br>|- <br>|% <br>(Percenta<br>ge)<br>|0 <br>|80<br>|Q2<br>|2023<br>|Reduction of backlog of unissued title deeds (the<br>legal document constituting the evidence of a right<br>to the ownership of a property). Title deeds for<br>1 050 developments are pending of issuance,<br>corresponding to 20 000 title deeds. Of this total<br>of 20 000 pending title deeds, 80% shall be issued.<br>|
|~~194~~|~~C3.5R3~~<br>Strategy for<br>addressing<br>inadequacies of the<br>property transaction<br>system (title deeds)|~~Milestone~~|~~Extension of the~~<br>New Planning<br>and Building<br>Permit Policy|~~Decree~~<br>issued by the<br>Minister of<br>Interior|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2022~~|~~Extension of the New Planning and Building~~<br>Permit Policy for up to four residential units in<br>residential plots. The Policy provides the<br>possibility to submit applications electronically<br>and introduces fixed deadlines to grant planning<br>and building permits (ten to twenty days).|
|195|C3.5R3<br>Strategy for<br>addressing<br>inadequacies of the<br>property transaction<br>system (title deeds)|Milestone|Entry into force<br>of the<br>amendment of<br>the Sale of<br>Property<br>(Specific<br>Performance)<br>Law|Provision in<br>the law<br>indicating<br>the entry<br>into force of<br>the amended<br>Sale of<br>Property<br>(Specific<br>Performance<br>) Law|-|-|-|Q4|2022|Entry into force of the amended Sale of Property<br>(Specific Performance) Law to safeguard the<br>buyers interests in advance. The amendment shall<br>allow for transfer of Title Deeds, under full safety<br>and legal certainty, while minimizing operational<br>costs and delays through checks at a preliminary<br>stage to identify specific obstacles to the transfer<br>before the payment of the purchase price. The aim<br>is to create a mechanism to safeguard the interests<br>of the buyers of immovable property and ensure in<br>advance that the transfer of immovable property<br>shall be executed as soon as the buyer fulfils<br>his/her contractual obligations.|
|196|C3.5R3<br>Strategy for<br>addressing<br>inadequacies of the<br>property transaction|Milestone|Review of the<br>Streets and<br>Building<br>Regulation|Provision in<br>the law<br>indicating<br>the entry<br>into force of|-|-|-|Q4|2023|Entry into force of the law amending the Streets<br>and Building Regulation which shall introduce the<br>right incentives for the supervising engineer to (i)<br>oversee the project development in accordance<br>with the permit issued, to further discourage|

114

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||system (title deeds)|||the amended<br>Streets and<br>Building<br>Regulation||||||irregularities that would result in title deeds not<br>being issued and (ii) submit to the competent<br>authority a certificate confirming the completion<br>of work in line with the permit issued.|
|197|C3.5R4<br>New legal<br>framework and<br>system of exchange<br>of data and credit<br>bureaus|Milestone|Entry into force<br>of the<br>framework and<br>system of<br>exchange of<br>data and credit<br>bureaus Law|Provision in<br>the law<br>indicating<br>the entry<br>into force of<br>the law|-|-|-|Q1|2023|Entry into force of the law on the framework and<br>system of exchange of data and credit bureaus,<br>which shall eliminate impediments in the current<br>framework so as to allow it to provide credit<br>scoring services. The main elements of the<br>amendment shall be to make the Central Bank of<br>Cyprus the owner of the system, to introduce a<br>duty to collect data for credit facilities by credit<br>institutions and to provide Insolvency Department<br>data, and to define the terms and conditions of<br>access to data and its protection.|
|198|C3.5R4<br>New legal<br>framework and<br>system of exchange<br>of data and credit<br>bureaus|Milestone|Upgraded<br>digital system of<br>exchange of<br>data and credit<br>bureaus|Successful<br>Production<br>of Credit<br>Scores|-|-|-|Q4|2024|Full implementation and entry into service of the<br>upgraded digital system of exchange of data and<br>credit bureaus in accordance with the law on the<br>framework and system of exchange of data and<br>credit bureaus, and start of provision of credit<br>scores services.|
|199|C3.5R5<br>Action plan for the<br>development of a<br>liability monitoring<br>register|Milestone|Action Plan for<br>the development<br>of a liability<br>monitoring<br>register|Approval of<br>the Action<br>Plan by the<br>Council of<br>Ministers|-|-|-|Q4|2022|The Action Plan shall put forward the necessary<br>steps for introducing the liability monitor register<br>that shall:<br>- set-up an electronic database, collecting data on<br>liabilities from various public and private<br>creditors, such as the public credit registry<br>- enable the design and implementation of targeted<br>policies for preventing and managing private<br>indebtedness.|

115

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|200<br>|C3.5R5<br>Action plan for the<br>development of a<br>liability monitoring<br>register<br>|Milestone<br>|Action plan for<br>the development<br>of a liability<br>monitoring<br>register<br>|Confirmatio<br>n by the<br>Council of<br>Ministers on<br>the<br>implementati<br>on of the<br>Action plan<br>|- <br>|- <br>|- <br>|Q4<br>|2024<br>|Full implementation of Action Plan for the<br>development of a liability monitoring register that<br>shall<br>- set-up an electronic database, collecting data on<br>liabilities from various public and private<br>creditors, such as the public credit registry<br>- enable the design and implementation of targeted<br>policies for preventing and managing private<br>indebtedness.<br>|
|~~201~~|~~C3.5R6 Reinforcing~~<br>and strengthening<br>the insolvency<br>framework|~~Milestone~~|~~Full~~<br>implementation<br>and full<br>operation of the<br>legal and<br>institutional<br>framework for<br>insolvency|~~Appointment~~<br>of staff<br>confirmed<br>by the<br>Official<br>Gazette.<br>Council of<br>Ministers’<br>approval of<br>the Progress<br>Report|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2022~~|~~Full implementation and full operation of the legal~~<br>and institutional framework on insolvency<br>through: (a) appointment of staff for all levels of<br>the organisational structure of the Department of<br>Insolvency, and delivery of trainings for the<br>personnel, (b) establishment of a communication<br>plan for promoting insolvency proceedings, (c)<br>approval of a customer service line, (d)<br>establishment of a framework for continuous<br>professional development for insolvency<br>Practitioners.|
|202|C3.5R6 Reinforcing<br>and strengthening<br>the insolvency<br>framework|Milestone|Operation of all<br>digital systems<br>developed for<br>the Department<br>of Insolvency|Approval of<br>the Progress<br>Report by<br>the Council<br>of Ministers|-|-|-|Q2|2025|The new digital systems shall increase the<br>relevance and efficiency of the existing<br>operational and technical systems of the<br>Department of Insolvency.|
|203|C3.5R7<br>Strategy for<br>Combating<br>Financial Illiteracy|Milestone|Strategy for<br>Combating<br>Financial<br>Illiteracy|Approval of<br>the Strategy<br>for<br>Combating<br>Financial|-|-|-|Q4|2023|The Strategy for Combating Financial Illiteracy<br>shall include concrete goals, measurable<br>objectives, specify the channels for promoting<br>financial literacy and include specific actions for<br>implementation (both short-term and long terms|

116

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||Illiteracy by<br>the Council<br>of Ministers<br>||||||measures). The reform shall also include full<br>implementation of the short-term measures of the<br>strategy.<br>|
|~~204~~|~~C3.5R8 Enhancing~~<br>supervision of<br>Insurance and<br>Pension Funds|~~Target~~|~~Strengthening~~<br>the human<br>resources of the<br>Registrar of<br>Occupational<br>Retirement<br>Benefits Fund<br>(RORBF) and<br>the Insurance<br>Companies<br>Control Service<br>(ICCS)|~~- ~~|~~Number~~|~~0 ~~|~~16~~|~~Q3~~|~~2022~~|~~Increase staff by thirteen employees for the~~<br>Registrar of Occupational Retirement Benefit<br>Funds (RORBF) and by three employees for the<br>Insurance Companies Control Service (ICCS).<br>This shall be a permanent increase in staff.|
|205|C3.5R8 Enhancing<br>supervision of<br>Insurance and<br>Pension Funds|Milestone|Supervisory<br>tools including<br>data collection<br>and analysis tool|Support<br>tools for<br>enhancing<br>the<br>supervision<br>of pension<br>funds and<br>insurance<br>companies|-|-|-|Q4|2023|Full implementation of tools (such as procedures,<br>checklists, fitness and propriety applications)<br>necessary for compliance with new legislation<br>(providing for the establishment, activities and<br>supervision of Institutions for Occupational<br>Retirement Benefits Law of 2020 -L 10(I)/2020.|
|206|C3.5I1<br>Enhancement of the<br>Supervisory<br>Function of the<br>Cyprus Securities<br>and Exchange|Milestone|Digital system<br>for supervision<br>of transactions<br>for the Cyprus<br>Securities and<br>Exchange|Project<br>management<br>committee<br>verifies<br>acceptance<br>of|-|-|-|Q4|2023|Full implementation of a new digital system of<br>supervision of transactions. The new digital<br>system shall have the following features:<br>- Loading and pre-processing of Transaction data.<br>- Aggregations and queries on data to generate<br>regulatory insights.|

117

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Commission<br>||Commission<br>|deliverables<br>in due time;<br>and quality<br>and<br>standards as<br>specified in<br>tender<br>documents<br> <br>||||||- Generation of on-schedule and ad-hoc reports.<br>|
|~~207~~<br>|~~C3.5R9 Improving~~<br>tax collection and<br>effectiveness of the<br>Tax Department<br>|~~Milestone~~<br>|~~Operation of~~<br>VAT Services<br>within an<br>Integrated Tax<br>Administration<br>System (ITAS)<br>|~~Project~~<br>Board<br>Approval of<br>the Project<br>Deliverables<br>for<br>completion,<br>installation<br>and<br>operation of<br>a new<br>integrated<br>VAT System<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q1~~<br>|~~2022~~<br>|~~The Cyprus Tax Department (CTD) shall put into~~<br>operation an Integrated Tax Administration<br>System (ITAS) that shall support the tax<br>administration functionalities and processes. The<br>functionalities related to the VAT Services shall<br>be completed and operational within this system.<br>|
|~~208~~|~~C3.5R9 Improving~~<br>tax collection and<br>effectiveness of the<br>Tax Department|~~Milestone~~|~~Integration of~~<br>operations of the<br>direct tax<br>administration<br>department<br>within the ITAS|~~Project~~<br>Board<br>approval of<br>the System<br>Deliverables<br>for<br>completion<br>installation|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2024~~|~~The tax administration services related to direct~~<br>taxes of natural and legal persons (in addition to<br>VAT) shall be operational within the ITAS.|

118

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||and<br>operation of<br>ITAS for<br>direct taxes<br>and go-live<br>acceptance<br>report|||||||
|209|C3.5R10<br>Addressing<br>Aggressive Tax<br>Planning|Milestone|Entry into force<br>of the law to<br>tackle<br>aggressive tax<br>planning|Provision in<br>the law<br>indicating<br>the entry<br>into force of<br>the law|-|-|-|Q4|2022|Entry into force of a law to tackle aggressive tax<br>planning by (a) imposing a withholding tax on<br>interest, dividends and royalty payments to<br>jurisdictions included in Annex I of the Council<br>conclusions on the revised EU list of non-<br>cooperative jurisdictions for tax purposes and (b)<br>introduction of a further corporate tax residency<br>test based on the incorporation of each entity.|
|210<br>|C3.5R10<br>Addressing<br>Aggressive Tax<br>Planning<br>|Milestone<br>|Entry into force<br>of the law to<br>tackle<br>aggressive tax<br>planning via<br>payments to low<br>tax jurisdictions<br>|Provision in<br>the law<br>indicating<br>the entry<br>into force of<br>the law<br>|- <br>|- <br>|- <br>|Q4<br>|2024<br>|Entry into force of a law to tackle aggressive tax<br>planning via payments to low tax jurisdictions by<br>introducing a withholding tax on interest,<br>dividends, and royalty payments to low tax<br>jurisdictions. In respect of interest and royalty<br>payments, the Cypriot authorities may explore<br>instead the approach of applying non-<br>deductibility.<br>|
|~~211~~|~~C3.5R10~~<br>Addressing<br>Aggressive Tax<br>Planning|~~Milestone~~|~~Entry into force~~<br>of legislative<br>changes<br>addressing the<br>findings of an<br>independent<br>evaluation on|~~Provision in~~<br>the law<br>indicating<br>the entry<br>into force of<br>the law|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2026~~|~~Cyprus shall assess the effectiveness of the overall~~<br>set of measures related to aggressive tax planning,<br>via an independent evaluation to be completed by<br>31 December 2024. This evaluation shall assess<br>the Cyprus tax framework holistically including<br>all measures adopted by then. The evaluation shall<br>lead to policy action to be undertaken by Cyprus|

119

|Sequential<br>Number|Related Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||the effectiveness<br>of measures<br>related to<br>aggressive tax<br>planning|||||||including in the form of legislative changes to<br>address any shortcomings identified.|
|212|C3.5I2<br>Modernisation of<br>Customs and<br>Electronic Payment<br>System|Target|Putting into<br>operation the<br>information<br>systems– <br>envisaged under<br>the Union<br>Customs Code<br>(UCC)|-|Number|0|2|Q4|2023|At least two of the following import-related<br>information systems have been completed,<br>installed and put into operation:<br>1. Automated Export System<br>2. New Computerised Transit System<br>3. EU Single Window<br>4. Union Customs Code<br>5. Guarantee Management<br>6. Union Customs Code<br>7. SURVEILLANCE 3<br>8. Union Customs Code - Import Control System 2<br>9. Import Applications under the Union Customs<br>Code<br>10. Customs Union Performance– Management<br>Information System<br>11. Union Customs Code Proof of Union Status<br>12. Uniform User Management and Digital<br>Signature|
|213|C3.5I2<br>Modernisation of<br>Customs and<br>Electronic Payment<br>System|Target|Putting into<br>operation of the<br>information<br>systems<br>envisaged under<br>the UCC|-|Number|2|12|Q4|2025|The 12 information systems have been completed,<br>installed and put into operation|

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**J.** **COMPONENT** **4.1:** **Upgrade infrastructure for connectivity**

This component of the Cypriot recovery and resilience plancontributes to addressing
infrastructure challenges in the area of data connectivity, in particular in rural areas, with a
view to narrowing the rural-urban divide, as well as differences along gender, age, income
and education.

The objective of the component is to enhance access to communication infrastructure for all
citizens, thus bridging the digital divide and supporting an inclusive digital transformation.

The component addresses the country-specific recommendation on investment in the digital
transition and the digitalisation (Country-Specific Recommendation 4 of 2019 and CountrySpecific Recommendation 3 of 2020).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**J.1.** **Description of the reforms and investments for non-repayable financial support**

Reform 1 (C4.1R1): Empower the National Regulatory Authority (OCECPR)

The objective of the measure is to facilitate and accelerate investments in Very High Capacity
Networks (VHCN) in underserved areas by providing stakeholders with the relevant
information to improve transparency and enhance the incentives for market operators to invest
faster in VHCN, thereby increasing connectivity in Cyprus.

The reform consists in providing the proper tools, through the adoption of secondary
legislation, to the Office of the Commissioner of Electronic Communications and Postal
Regulation (OCECPR) to launch a survey in order to collect geographical data on electronic
communication networks. The data shall then be accessible through a web portal providing
detailed information regarding network roll-out in areas where it is needed. This is expected
to help bridge the gap with private investments for VHCN.

The implementation of the reform shall be completed by 31 December 2024.

Reform 2 (C4.1R2): Empower the National Broadband Competence Office (DEC of the
DMRIDP)

The objective of the measure is to facilitate the build-up of VHCN infrastructure by
simplifying the necessary administrative procedures for its deployment while implementing
the Connectivity Toolbox Recommendation (set of best practices for reducing the cost of
deploying electronic communications networks and for efficient access to 5G radio spectrum).

The reform consists in identifying the administrative bottlenecks and barriers to the rapid
deployment of VHCN and possible measures to address them. It shall be followed-up by the
entry into force of legislation to effectively address such bottlenecks and barriers.

The implementation of the reform shall be completed by 30 June 2024.

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                             Investment 1 (C4.1I1): Expansion of Very High Capacity Networks in underserved areas

The objective of the measure is to improve connectivity with VHCN (such as fibre and 5G),
by supporting the build-up of VHCN in areas of no private interest and thereby addressing
territorial disparities of broadband availability.

The investment consists in organising public tenders through an open tender procedure
addressed to telecom operators to select contractors that shall undertake the design,
construction and operation of the network, as well as part of the financing. The geographical
territory of the Republic of Cyprus which is under the control of the Government of Cyprus is
expected to be divided into three lots. The maximum amount of public financial contribution
shall be set separately for each lot, and award criteria are expected to include the requested
public support as well as the price offered to end-users and to other retail operators.
Wholesale obligations shall be imposed to the contractors.

The implementation of the investment shall be completed by 31 December 2025.

“                              - ”
Investment 2 (C4.1I2): Enhance building cabling to be Gigabit ready and promote
connectivity take-up

The objectives of the measure are to encourage the digital transition through support of
widespread take-up of VHCN.

The investment consists in the implementation of a demand subsidy (voucher) scheme,
addressed exclusively to physical persons (i.e. excluding enterprises), encouraging them to
proceed with the construction of their building internal cabling, to be ready for connection to
a VHCN passing close to their premises. It applies to single tenant units, as well as apartments
in multi-dwelling buildings with no internal cabling capable of supporting very high capacity
services. The voucher value per premise shall be fixed. End-users shall be able to select an
installer of their choice to perform the works. After the completion of works, installers shall

                         upload in the IT system the “Gigabit ready” certificate for the building, along with the
acceptance form signed by the owner/tenant who issued the voucher, thus triggering
redemption of the voucher.

The implementation of the investment shall be completed by 30 June 2025.

Investment 3 (C4.1I3): Submarine link to Greece

The objective of the measure is to create high-capacity resilient backbone internet
connectivity for Cyprus through a new submarine link for data connectivity between Cyprus
and Greece.

The investment consists in the installation of new submarine cables to connect Cyprus with
the Greek subsystem, through which Cyprus shall have access to some of the region’s most
important internet exchanges (Athens, Sofia and Chania). The deployment of a new separate
backbone route between Cyprus and Greece shall strategically support connectivity in the
island. It is also expected to have a positive impact on the available capacity and the
commercial offers of backbone connectivity needed to provide very-high-speed services to
end-users. Furthermore, it shall offer significantly higher performance (in terms of resilience,
security, redundancy and latency) compared to existing dated cables. The investment is to be
carried out by a contractor to be selected in an open tender procedure. The selection criteria
are expected to include the total capacity (such as in terms of fibres/wavelengths/capacity) to
be provided, the commercial price to be offered to operators/customers of the cable system, as
well as the requested amount of public support.

122

It is expected that this measure does not do significant harm to environmental objectives
within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the
description of the measure and the mitigating steps set out in the recovery and resilience plan
in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the
mitigating measures targeting the conservation of the marine environment shall be duly
respected during the implementation of the project as set out in the Environmental Impact
Assessment and the building permit. Any measures identified in the framework of the EIA
and the assessment under Directive 2000/60/EC as necessary to ensure compliance with the
DNSH Technical Guidance (2021/C58/01) shall be integrated into the project and complied
with at the stages of construction, operation and decommissioning of the infrastructure.

The implementation of the investment shall be completed by 30 June 2026.

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**J.2.** **Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investm<br>ent)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investm**<br>**ent)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~214~~<br>|~~C4.1R1~~<br>Empowe<br>r the<br>National<br>Regulato<br>ry<br>Authorit<br>y <br>(OCECP<br>R)<br>|~~Milestone~~<br>|~~Launch of the~~<br>geographical<br>survey and<br>entry into<br>force of<br>secondary<br>legislation<br>|~~Entry into~~<br>force of the<br>secondary<br>legislation and<br>launch of the<br>survey<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q1~~<br>|~~2022~~<br>|~~The secondary legislation shall enter into force and~~<br>cover the main aspects related to the survey such as<br>the type, the degree of analysis and the form of the<br>required information, as well as the persons from<br>whom the required information is requested.<br>Launch of the geographical survey of the reach of<br>electronic networks capable of delivering broadband<br>networks and physical infrastructures based on<br>Article 22 of the European Electronic<br>Communications Code.<br>|
|~~215~~<br>|~~C4.1R1~~<br>Empowe<br>r the<br>National<br>Regulato<br>ry<br>Authorit<br>y <br>(OCECP<br>R)<br>|~~Milestone~~<br>|~~The web~~<br>portal on<br>broadband and<br>infrastructure<br>mapping is<br>operational<br>and accessible<br>to the target<br>audience<br>|~~The web~~<br>portal on<br>broadband and<br>infrastructure<br>mapping is<br>accessible<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q4~~<br>|~~2024~~<br>|~~The web portal on broadband and infrastructure~~<br>mapping is completed, tested, operational and<br>accessible to the target audience (such as the Office of<br>the Commissioner for Electronic Communications<br>and Postal Regulation, Public Authorities, Electronic<br>Communication Network Operators and end-users).<br>|
|~~216~~|~~C4.1R2~~<br>Empowe<br>r the<br>National<br>Broadba<br>nd<br>Compete<br>nce|~~Milestone~~|~~Entry into~~<br>force of the<br>administrative<br>acts for very<br>high capacity<br>networks’<br>deployment|~~Provision in~~<br>the<br>administrative<br>acts indicating<br>the entry into<br>force of the<br>respective acts|~~- ~~|~~- ~~|~~- ~~|~~Q2~~|~~2024~~|~~Entry into force of the administrative acts that shall~~<br>effectively streamline and reduce administrative<br>barriers (such as shortening permit granting<br>procedures and lowering fees as well as facilitating<br>access to physical infrastructure) for the deployment<br>of very high capacity networks in line with the<br>Connectivity Toolbox Recommendation (including a<br>set of best practices for reducing the cost of deploying|

124

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investm<br>ent)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investm**<br>**ent)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Office<br>(DEC of<br>the<br>DMRID<br>P)|||||||||electronic communications networks and for efficient<br>access to 5G radio spectrum).|
|217|C4.1I1<br>Expansio<br>n of Very<br>High<br>Capacity<br>Network<br>s in<br>underser<br>ved areas|Milestone|Start of very<br>high capacity<br>networks’<br>deployment in<br>underserved<br>areas|Signed<br>contracts with<br>contractors to<br>deploy very<br>high capacity<br>networks in<br>areas of no<br>interest to<br>private very<br>high capacity<br>network<br>investors|-|-|-|Q4|2023|Contracts have been signed with contractors, which<br>shall have been selected through an open tender<br>procedure, to deploy very high capacity networks (in<br>particular, fixed and mobile (5G) networks offering a<br>download speed of at least 100Mbps, which shall be<br>readily upgradable to Gigabit for fixed access) in<br>areas of no interest to private very high capacity<br>network investors.|
|218<br>|C4.1I1<br>Expansio<br>n of Very<br>High<br>Capacity<br>Network<br>s in<br>underser<br>ved areas<br>|Target<br>|Expansion of<br>very high<br>capacity<br>networks’<br>deployment in<br>underserved<br>areas<br>|- <br>|Number<br>|0 <br>|10 00<br>0 <br>|Q4<br>|2024<br>|At least 10 000 premises in areas of no interest to<br>private very high capacity network investors are<br>covered by very high capacity networks with fixed or<br>mobile (5G) network, offering a download speed of at<br>least 100Mbps, which shall be readily upgradable to<br>Gigabit (for fixed networks).<br>|
|~~219~~|~~C4.1I1~~<br>Expansio<br>n of Very<br>High|~~Target~~|~~Completion of~~<br>very high<br>capacity<br>networks’|~~- ~~|~~Number~~|~~10 000~~|~~44 00~~<br>0|~~Q4~~|~~2025~~|~~At least 44 000 premises in areas of no interest to~~<br>private very high capacity network investors are<br>covered by very high capacity networks with fixed or<br>mobile (5G) network, offering a download speed of at|

125

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investm<br>ent)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investm**<br>**ent)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Capacity<br>Network<br>s in<br>underser<br>ved areas||deployment in<br>underserved<br>areas|||||||least 100Mbps, which shall be readily upgradable to<br>Gigabit (for fixed networks).|
|220|C4.1I2<br>Enhance<br>building<br>cabling<br>to be<br>“Gigabit-<br>ready”<br>and<br>promote<br>connecti<br>vity take-<br>up|Target|Expansion of<br>intra-building<br>Gigabit-ready<br>cabling|-|Number|0|24 30<br>0|Q2|2023|Intra-building cabling has been upgraded to be able to<br>support provision of Gigabit connection in at least<br>24 300 homes.|
|221<br>|C4.1I2<br>Enhance<br>building<br>cabling<br>to be<br>“Gigabit-<br>ready”<br>and<br>promote<br>connecti<br>vity take-<br>up<br>|Target<br>|Completion of<br>intra-building<br>Gigabit-ready<br>cabling<br>|- <br>|Number<br>|24 300<br>|82 00<br>0 <br>|Q2<br>|2025<br>|Intra-building cabling has been upgraded to be able to<br>support provision of gigabit connection in at least<br>82 000 homes.<br>|
|~~222~~|~~C4.1I3~~|~~Milestone~~|~~Signature of~~|~~Signature of~~|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2024~~|~~Signature of the contract with the company that shall~~|

126

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investm<br>ent)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investm**<br>**ent)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Submari<br>ne link to<br>Greece||the contract<br>for the design,<br>construction<br>and operation<br>of the<br>submarine<br>cables|the contract||||||undertake the design, construction and operation of<br>the submarine cables following the conclusion of an<br>open tender procedure.<br>|
|223|C4.1I3<br>Submari<br>ne link to<br>Greece|Target|Completion of<br>the<br>construction<br>of the<br>submarine<br>internet cables|Completion of<br>the<br>construction;<br>service<br>availability|Km|0|700|Q2|2026|Completion of the construction of 700km of<br>submarine internet cables for connectivity to Greece<br>from Yeroskipou to Crete since 2020. The cables are<br>operational.|

127

**K.** **COMPONENT** **4.2:** **P** **ROMOTE E** **-** **GOVERNMENT**

This component of the Cypriot recovery and resilience plancontributes to accelerating the
digital transformation of Cyprus through the digitalisation of government services enhancing
the efficiency and the provision of online, secure and prompt services to citizens, in a user
friendly, efficient and effective way. This is expected to facilitate the interaction between
citizens and the public services, without the need for physical presence.

The objective of the component is to build a secured, integrated and modern digital
architecture to achieve the transformation to a digital government.

The component addresses the country-specific recommendation on investment in the digital
transition and the digitalisation (Country-Specific Recommendation 4 of 2019 and CountrySpecific Recommendation 3 of 2020).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**K.1. Description of the reforms and investments for non** **repayable financial support**

Reform 1 (C4.2R1): Digital Services Factory (DSF)

The objective of the measure is to build a new Service Delivery Model for the development of
end-to-end quality digital services to the public, in a user-friendly, efficient and effective way
that shall ultimately facilitate the interaction with public services, without the need for
physical presence.

The reform shall consist in designing and developing this new delivery model, the DSF. First,
the project shall (i) set up the core team of the DSF (comprised of experts of different
specialties with the appropriate skills and qualifications), (ii) define the standards and
procedures for the development of digital services, and (iii) build and develop a number of
digital services. Second, using the methodologies defined, digital services shall be developed
in an industrialised fashion, in cooperation with the private sector. Services shall be provided
securely to citizens through a single government website portal Gov.Cy. Single sign-on and
digital identity are expected to be the basic key enablers for the secure provision of eServices.
Furthermore, existing common mechanisms like ‘ePayment’ offering several methods of
payments (such as visa, instant payments and direct banking) and ‘notification’ (such as SMS,
email) are expected to be utilised.

The implementation of the reform shall be completed by 30 June 2026.

Reform 2 (C4.2R2): Definition and implementation of a new cloud policy with regard to
government IT systems and services

The objective of the measure is to elaborate the cloud policy of the government, notably the
data classification, data residency, the hosting and operation of the government IT systems
either in a public cloud or in a government private cloud (G-Cloud) environment.

The reform shall consist in setting up the G-Cloud to host the IT systems and digital services
of certain government departments / ministries (such as the registrar of companies system, the
customs system and the tax department system). Two local data centres shall be acquired
through rental, while consultancy services as well as training shall be acquired for the
development of the G-Cloud. A tender for the development and operation of the G-Cloud
environment is also expected to be issued.

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The implementation of the reform shall be completed by 31 December 2025.

Reform 3 (C4.2R3): Police procedures digitalisation (“Digipol”)

The objective of the measure is to eliminate the use of paper procedures and physical presence
of the citizens by moving to digitalised procedures for the Cyprus Police Force. This is
expected to be beneficial for both citizens and police officers as procedures shall be simplified
and efficient.

The reform shall consist in the creation of a new platform (Digipol) of demands for police
procedures and services for citizens to achieve remote communications. Both citizens and
police officers will make use of it. To maximise the uptake, trainings (such as online courses,
videos, step-by-step guides) for police officers as well as for citizens shall be organised to
help transitioning to online services.

The implementation of the reform shall be completed by 30 September 2025.

Reform 4 (C4.2R4): Setting up the beneficial ownership registry

The objective of the measure is to set up the register for the submission of the data of
beneficial owners of all corporate and other legal entities. Such registration shall improve
corporate trust and transparency in Cyprus by making it clear who ultimately owns and
controls companies and other legal entities.

The reform shall consist in setting up the register. Currently, an online platform has been
developed as an interim solution but its functionalities are limited. The reform shall result in a
solution with all necessary functionalities to support the maintenance of the register and
management of relevant information (such as sending out notifications for updating,
enforcement of late filing fees, search facilities with prescribed levels of access). This is
expected to support the registration of the data of beneficial owners of all corporate and other
legal entities and achieve interconnection with the beneficial ownership registers of other
Member States.

The implementation of the reform shall be completed by 31 December 2023.

Investment 1 (C4.2I1): Digitalisation in various central government ministries/services

The objective of the measure is to digitalise key workflows in a number of ministries and
central government services, to improve efficiency in the delivery of government services,
simplify compliance with government regulations, strengthen citizen participation and trust in
government, and yield cost savings.

The investment shall consist in digitalisation in the following ministries, deputy Ministries or
services of the government: (i) Road Transport Department of the Ministry of Transport,
Communication and Works, (ii) Deputy Ministry of Shipping, (iii) Ministry of Foreign
Affairs, (iv) Directorate General for European Programmes, Coordination and Development
and (v) Department of Town Planning and Housing of the Ministry of Interior (for
Architectural Heritage). Digitalisation of the Directorate General for European Programmes,
Coordination and Development shall include development of a transitory repository system
and of a final dedicated Monitoring Information System for recording and storing the relevant
data related to the implementation of the recovery and resilience plan (in particular on the
achievement of milestones and targets, data on final recipients, contractors, subcontractors
and beneficial owners).

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The implementation of the investment shall be completed by 31 December 2025.

Investment 2 (C4.2I2): Digitalisation of the Cyprus Ports Authority

The objective of the measure is to digitalise key processes in the Cyprus Ports Authority
(CPA) to improve their efficiency and effectiveness, including communications between
vessels and the relevant authorities and improvements to monitoring vessel traffic in Cyprus
waters. The latter is to ensure the safe navigation of vessels, reduce the risk of environmental
damages due to spills from accidents and reduce vessel emissions by plotting more efficient

routes.

The investment shall consist of (i) several upgrades to the CPA’s network infrastructure,
hardware and software, and server capacity; (ii) incorporation of new Management Systems to
automate procedures; (iii) overhaul of the existing Port Community System to increase the
efficiency of the maritime transport sector and to reduce administrative burdens; and (iv)
installation of Vessel Traffic Control Stations at the Ports of Larnaca and Vassiliko (in
addition to the existing one in Limassol port).

The implementation of the investment shall be completed by 31 December 2025.

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**-**
**K.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Timeline for<br>completion<br>(indicate the<br>quarter and the<br>year)|Col10|Description and clear definition of each milestone and<br>target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|224|C4.2R1<br>Digital<br>Services<br>Factory|Milestone|Definition<br>of the<br>Service<br>Delivery<br>Model for<br>the Digital<br>Services<br>Factory|Appointment<br>decision of the<br>Deputy Minister of<br>Research, Innovation<br>and Digital Policy<br>establishing the team;<br>publication of the<br>standards on the<br>website of the Deputy<br>Ministry|-|-|-|Q4|2022|The Service Delivery Model for the Digital Services Factory<br>has been defined so as to enable the efficient provision of<br>high-quality and user-friendly digital services to the public.<br>This shall include: (a) the establishment of the core Digital<br>Services Factory team (including the procurement of services<br>of experts from the private sector), and (b) definition of the<br>standards and procedures for the development of digital<br>services.|
|225|C4.2R1<br>Digital<br>Services<br>Factory|Target|Expansion<br>of delivery<br>of<br>government<br>services<br>online<br>through the<br>Digital<br>Services<br>Factory|-|Number|0|45|Q4|2023|Digitalisation and delivery online of at least 45 previously<br>non-digital services to the public through the Digital Services<br>Factory, using the defined Service Delivery Model (under<br>milestone with a sequential number 224) and agile<br>methodologies.|
|226|C4.2R1<br>Digital<br>Services<br>Factory|Target|Delivery<br>online of at<br>least 150<br>previously<br>non-digital<br>services to<br>the public|-|Number|45|150|Q2|2026|Digitalisation and delivery online of at least 150 previously<br>non-digital services to the public through the Digital Services<br>Factory, using the defined Service Delivery Model (under<br>milestone with a sequential number 224) and agile<br>methodologies.|

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|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Timeline for<br>completion<br>(indicate the<br>quarter and the<br>year)|Col10|Description and clear definition of each milestone and<br>target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||through the<br>Digital<br>Services<br>Factory<br>||||||||
|227|~~C4.2R2~~<br>Definition<br>and<br>implemen<br>tation of a<br>new cloud<br>policy<br>with<br>regard to<br>governme<br>nt IT<br>systems<br>and<br>services|~~Milestone~~|~~The~~<br>government<br>cloud (G-<br>cloud) is<br>operational|~~Services migrated to~~<br>G-cloud|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2022~~|~~G-cloud is operational, providing cloud services for data~~<br>storage to at least the Registrar of Companies, the Digital<br>Services Factory, and the customs system. These three<br>services have been migrated to the G-cloud and are no longer<br>using the old IT system.|
|228|C4.2R2<br>Definition<br>and<br>implemen<br>tation of a<br>new cloud<br>policy<br>with<br>regard to|Target|Data centres<br>operational<br>and offering<br>cloud<br>services|-|Number|0|2|Q4|2025|Two new data centres shall be fully operational, including the<br>premises, hardware and software, and offer cloud services.|

132

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Timeline for<br>completion<br>(indicate the<br>quarter and the<br>year)|Col10|Description and clear definition of each milestone and<br>target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||governme<br>nt IT<br>systems<br>and<br>services<br>||||||||||
|229|~~C4.2R3~~<br>Police<br>Procedure<br>s <br>digitalisati<br>on<br>Digipol<br>|~~Milestone~~<br>|~~Digipol~~<br>operational<br>on a pilot<br>basis<br>|~~Declaration by the~~<br>Cyprus Police<br>confirming that the<br>new platform<br>(Digipol) is<br>operational<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q2~~<br>|~~2023~~<br>|~~The new platform (Digipol) is operational on a pilot basis.~~<br>Police users have access to the Digipol pilot for the services<br>addressed to the police officers.<br>|
|230|~~C4.2R3~~<br>Police<br>Procedure<br>s <br>digitalisati<br>on<br>Digipol<br>|~~Target~~<br>|~~Citizens use~~<br>Digipol<br>|~~- ~~<br>|~~Number~~<br>|~~0 ~~<br>|~~500~~<br>|~~Q3~~<br>|~~2025~~<br>|~~Digipol shall be accessible online through the Cyprus Police~~<br>ICT infrastructure. At least 500 citizens have used one or<br>more of the services available on the Digipol platform for<br>citizens.<br>|
|231|~~C4.2R4~~<br>Setting up<br>the<br>beneficial<br>ownership<br>registry|~~Milestone~~|~~Beneficial~~<br>ownership<br>registry<br>available for<br>use|~~Beneficial ownership~~<br>registry publicly<br>available online at<br>national and<br>European Level|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2023~~|~~The beneficial ownership registry shall be deployed and~~<br>become available for use at national level and European level,<br>enabling users to check the ultimate beneficial ownership<br>information of legal entities and to achieve interconnection of<br>the beneficiary ownership registers with other Member States.|

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|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Timeline for<br>completion<br>(indicate the<br>quarter and the<br>year)|Col10|Description and clear definition of each milestone and<br>target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|232|C4.2I1<br>Digitalisat<br>ion in<br>various<br>Central<br>Governme<br>nt<br>Ministries<br>- Services<br>|Milestone<br>|Repository<br>system for<br>audit and<br>control:<br>information<br>for<br>monitoring<br>implementat<br>ion of RRF<br>|An audit report<br>confirming repository<br>system functionalities<br>|- <br>|- <br>|- <br>|Q1<br>|2022<br>|A repository system for monitoring the implementation of the<br>RRF shall be in place and operational. The system shall<br>include, as a minimum, the following functionalities:<br>(1) collection of data and monitoring of the achievement of<br>milestones and targets; (2) collect, store and ensure access to<br>the data required by Article 22(2)(d) (i) to (iii) of Regulation<br>(EU) 2021/241.<br>|
|233|~~C4.2I1~~<br>Digitalisat<br>ion in<br>various<br>Central<br>Governme<br>nt<br>Ministries<br>- Services|~~Target~~|~~Start of the~~<br>digital<br>upgrade of a<br>number of<br>central<br>government<br>ministries<br>and<br>departments|~~- ~~|~~Number~~|~~0 ~~|~~4 ~~|~~Q1~~|~~2022~~|~~The contracts with providers selected through public~~<br>procurement procedures have been signed to<br>digitalise/digitally upgrade at least four of the following<br>central government ministries/departments:<br>1. Road Transport Department of the Ministry of Transport,<br>Communication and Works,<br>2. Deputy Ministry of Shipping.<br>3. Ministry of Foreign Affairs<br>4. Directorate General for European Programmes,<br>Coordination and Development<br>5. Department of Town Planning and Housing of the Ministry<br>of Interior (for Architectural Heritage).|
|234|C4.2I1<br>Digitalisat<br>ion in<br>various<br>Central<br>Governme<br>nt<br>Ministries|Target|Advanceme<br>nt of the<br>digital<br>upgrade of a<br>number of<br>central<br>government<br>ministries|-|Number|0|4|Q4|2023|Development completed and systems put into operation for<br>four government ministries/departments from the list in target<br>with sequential number 233.|

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|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Timeline for<br>completion<br>(indicate the<br>quarter and the<br>year)|Col10|Description and clear definition of each milestone and<br>target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||- Services<br>||and<br>departments<br>||||||||
|~~235~~|~~C4.2I1~~<br>Digitalisat<br>ion in<br>various<br>Central<br>Governme<br>nt<br>Ministries<br>- Services|~~Target~~|~~Finalisation~~<br>of the digital<br>upgrade of a<br>number of<br>central<br>government<br>ministries<br>and<br>departments|~~- ~~|~~Number~~|~~4 ~~|~~5 ~~|~~Q4~~|~~2025~~|~~Development completed and systems put in operation for all~~<br>five government ministries/departments from the list in target<br>with sequential number 233.|
|236|C4.2I2<br>Digitalisat<br>ion of the<br>Cyprus<br>Ports<br>Authority|Target|Start of the<br>digital<br>upgrade of<br>the Cyprus<br>Ports<br>Authority|-|Number|0|4|Q2|2023|The contracts with providers selected through a public<br>procurement procedure have been signed to develop/upgrade<br>at least four of the following seven systems for the Cyprus<br>Ports Authority: <br>1. Upgrade of the Port Community System; <br>2. Installation of VTS Station; <br>3. Digitisation of CPA archives; <br>4. Upgrade of IT infrastructure (such as network, switches); <br>5. Update IS systems; <br>6. Installation of an HR Management System; <br>7. Upgrade CPA Servers; <br> <br>and to develop the following e-services: <br>• administrative and reporting formalities between ships|

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|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investme<br>nt)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Timeline for<br>completion<br>(indicate the<br>quarter and the<br>year)|Col10|Description and clear definition of each milestone and<br>target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investme**<br>**nt)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators** <br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|||||||||||arriving and/or departing from the Republic of Cyprus; <br>• monitoring and safety of navigation to and from the ports of<br>Larnaca and Vasiliko.|
|237|C4.2I2<br>Digitalisat<br>ion of the<br>Cyprus<br>Ports<br>Authority|Target|Advanceme<br>nt of the<br>digital<br>upgrade of<br>the Cyprus<br>Ports<br>Authority|-|Number|0|4|Q4|2024|Finalisation and installation of at least four of the systems<br>from the list in target with sequential number 236 for all<br>relevant ports.|
|238|C4.2I2<br>Digitalisat<br>ion of the<br>Cyprus<br>Ports<br>Authority|Target|Finalisation<br>of the digital<br>upgrade of<br>the Cyprus<br>Ports<br>Authority|-|Number|4|7|Q4|2025|All of the seven systems from the list in target with sequential<br>number 236 for all relevant ports are installed and operational,<br>with all hardware/equipment installed and set up.|

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**L.** **COMPONENT** **5.1:** **E** **DUCATIONAL** **SYSTEM** **MODERNISATION** **,** **UPSKILLING** **AND**

**RETRAINING**

This component of the Cypriot Recovery and Resilience plan addresses the challenges of low
participation in vocational education and training (VET) and lifelong learning, rising skills
mismatches (particularly among young graduates) and poor digital skills. It further addresses
the quality of teaching and the availability and affordability of early childhood education and
care (ECEC) for children aged four years old. Its objective is to (i) improve the quality and
effectiveness of education and training at all levels, (ii) foster the uptake of labour marketrelevant reskilling and upskilling opportunities, in particular regarding the twin transitions,
across society regardless of employment status, skills level or age, and (iii) modernise the
school structures making them fit for the digital transition.

The reforms and investments included in the component address the country-specific
recommendations on education and skills (country-specific recommendation 2 2020 and
country-specific recommendation 3 2019), early childhood education and care (countryspecific recommendation 3 2019) as well as on digital skills (country-specific
recommendation 4 2019 and country-specific recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**L.1.** **Description of the reforms and investments for non-repayable financial support**

Reform 1 (C5.1R1): Addressing skills mismatch between education and labour market
(Secondary and Higher Education)

The objective of the reform is to address the skills mismatch between the labour market and
the secondary and higher education system.

For this purpose, key initiatives of the National Action Plan shall be implemented including
the introduction of (i) a higher education graduate tracking system, (ii) a reform of secondary
schools’ educational curricula to improve soft and entrepreneurial skills, (iii) an in-job
shadowing programme for secondary general education pupils, and (iv) new programmes of
study in secondary general as well as vocational education and training tailored to labour
market needs. It shall further entail the provision of high-quality training to secondary
education teaching staff in close collaboration with labour market experts as well as the
upgrading of school laboratories with the latest technology and equipment.

The implementation of the reform shall be completed by 31 December 2025.

Reform 2 (C5.1R2): A new teacher and school evaluation system

The aim of the reform is to improve the quality of education and consequently students’
educational outcomes.

This reform shall modernise and update the current teachers and schools evaluation system by
developing a single evaluation scheme for primary, secondary and technical and vocational
education with differentiated elements. This contemporary evaluation system of schools and
teachers shall incorporate the training of teachers and evaluators.

The implementation of the reform shall be completed by 31 December 2025.

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                                 Reform 3 (C5.1R3): Extension of free compulsory pre primary education from the age of four

The objective of this reform is to enhance the availability and affordability of early childhood
education and care (ECEC) promoting the (re-)entry of people with childcare responsibilities,
mostly women, into the labour market as well as children’s educational outcomes and social
inclusion.

It shall include the gradual eight-month extension of the entry age in free compulsory preprimary education (from children aged four years and eight months and over, to children aged
four years and over). The measure shall be accompanied by the provision of a grant to cover
tuition fees in community or private kindergartens for children that cannot be enrolled in
public kindergartens due to capacity constraints.

The implementation of the reform shall be completed by 30 June 2026.

Reform 4 (C5.1R4): Digital transformation of school units with the aim of enhancing digital
skills and skills related to STEM education

The aim of the reform is to support the digital transition of the education system.

This measure shall entail the modernisation of educational structures through the development
of e-classes and the equipment of classrooms with digital tools, the transformation of
curricula and educational material to enhance digital skills and STEM methodology, as well
as the relieving of costs for the purchase of digital equipment (laptops/tablets) for students
from low socio-economic background. It shall further include the provision of digital skills
and STEM methodology training to at least 675 (out of which 300 primary, 300 secondary
general and 75 secondary vocational teachers) teachers per year for 5 years (in total at least 3
375 teachers which accounts for around 32% of all teachers (primary and secondary)).

The implementation of the reform shall be completed by 30 June 2026.

Reform 5 (C5.1R5): E-skills Action Plan – Implementation of specific actions

This measure aims at enhancing digital competences across all population groups.

It shall include the (i) development of an e-skills policy framework and action plan, (ii) the
design and delivery of targeted programmes for public sector professionals promoting crosssectoral competencies, as well as (iii) the design of reskilling/upskilling interventions
enhancing the digital literacy of the workforce in the private sector and unemployed persons,
with a special focus on women and vulnerable groups. Furthermore, this measure shall entail
a communication strategy to promote lifelong learning and a digital culture in Cyprus,
investments in digital infrastructure to support digital learning and the development of an elearning platform with key content material on digital skills and cross-sectoral competences
accessible to all target groups.

The implementation of the reform shall be completed by 31 December 2025.

Investment 1(C5.1I1): Construction of two Model Technical Schools

The objective of the investment is to provide students and educators with a modern wellequipped environment for learning increasing the capacity, quality and attractiveness of
vocational education and training (VET) in Cyprus.

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This measure shall comprise of the construction of two new technical schools, one in
Limassol (in replacement of current A’ Technical School) and one in Larnaca (in replacement
of Agios Lazaros Technical School).

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C5.1I2): Skilling, Reskilling and Upskilling

The aim of this investment is to strengthen the digital skills of the population in line with the
e-skills action plan, to enhance the knowledge and skills of persons in green and blue sectors
of the economy and to promote entrepreneurship competences.

The measure shall include the delivery of trainings for the strengthening of digital, green and
blue skills for all, entrepreneurship trainings for the unemployed, with a special emphasis on
women and vulnerable groups, as well as trainings in digital skills for people over the age of
55.

The implementation of the investment shall be completed by 31 December 2025.

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**-**
**L.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**<br>|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**<br>|**Milestone**<br>**/ Target**<br>|**Name**<br>|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**<br>|**Unit of**<br>**measure**<br>|**Baseline**<br>|**Goal**<br>|**Quarter**<br>|**Year**<br>|**Year**<br>|
|~~239~~<br>|~~C5.1R1~~<br>Addressing<br>skills<br>mismatch<br>between<br>education and<br>labour market<br>(Secondary<br>and Higher<br>Education)<br>|~~Milestone~~<br>|~~Implement~~<br>ation of<br>key<br>measures<br>from the<br>National<br>Action Plan<br>|~~Publication~~<br>of reports<br>and<br>communicati<br>on by<br>competent<br>authorities<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q4~~<br>|~~2024~~<br>|~~Full implementation of key measures from the National~~<br>Action Plan, including at least:<br>(a) report on the preliminary results of “Graduate<br>Tracking of Cyprus Higher Education" survey is<br>published;<br>(b) 320 of the secondary schools’ educational curricula are<br>reformed to improve digital literacy, emotional<br>intelligence, soft skills and entrepreneurship skills; and<br>(c) two new programmes of study are developed.<br>|
|~~240~~<br>|~~C5.1R1~~<br>Addressing<br>skills<br>mismatch<br>between<br>education and<br>labour market<br>(Secondary<br>and Higher<br>Education)<br>|~~Target~~<br>|~~Secondary~~<br>education<br>teaching<br>staff<br>trained<br>|~~- ~~<br>|~~Number~~<br>|~~0 ~~<br>|~~3 100~~<br>|~~Q4~~<br>|~~2025~~<br>|~~At least 3 100 secondary education teaching staff are~~<br>trained in the reformed educational curricula.<br>|
|~~241~~|~~C5.1R2~~<br>A new teacher<br>and school<br>evaluation<br>system|~~Milestone~~|~~Entry into~~<br>force of the<br>law for<br>establishin<br>g a new<br>Teacher<br>and School<br>Evaluation|~~Provision in~~<br>the law(s)<br>indicating the<br>entry into<br>force of the<br>law(s)|~~ -~~|~~ -~~|~~ -~~|~~Q4~~|~~2023~~|~~Entry into force of the law for establishing a new Teacher~~<br>and School Evaluation mechanism, which shall stipulate<br>that the new mechanism applies at the latest from the<br>school year 2024/2025.|

140

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||||mechanism||||||||
|242<br>|C5.1R2<br>A new teacher<br>and school<br>evaluation<br>system<br>|Target<br>|Training of<br>teaching<br>staff<br>|-<br>|Number<br>|0 <br>|1 100<br>|Q4<br>|2025<br>|At least 1 100 teaching staff (teachers, deputy heads and<br>school heads) have been trained for the new Teachers and<br>School Evaluation system.<br>|
|~~243~~<br>|~~C5.1R3~~<br>Extension of<br>free<br>compulsory<br>pre-primary<br>education<br>from the age<br>of four<br>|~~Milestone~~<br>|~~Entry into~~<br>force of the<br>new Law<br>regarding<br>extension<br>of free<br>compulsory<br>pre-<br>primary<br>education<br>from the<br>age of four<br>years and<br>adoption of<br>grant<br>scheme by<br>the Council<br>of<br>Ministers<br>|~~Provision in~~<br>the law(s)<br>indicating the<br>entry into<br>force of the<br>law(s)<br>|~~ -~~<br>|~~ -~~<br>|~~ -~~<br>|~~Q4~~<br>|~~2022~~<br>|~~Entry into force of the Law which shall extend the free~~<br>compulsory pre-primary education from the age of four<br>years and the adoption of the grant scheme to cover tuition<br>fees in community or private kindergartens for children<br>that cannot be enrolled in public kindergartens by the<br>Council of Ministers.<br>|
|~~244~~|~~C5.1R3~~<br>Extension of<br>free<br>compulsory<br>pre-primary|~~Target~~|~~Children~~<br>benefitting<br>from<br>tuition fees<br>support|~~ -~~|~~Number~~|~~0 ~~|~~2 500~~|~~Q4~~|~~2024~~|~~Providing tuition fee support for the free compulsory pre-~~<br>primary education of at least 2 500 children from the age<br>of four in community and private kindergartens.|

141

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||education<br>from the age<br>of four<br>||||||||||
|~~245~~|~~C5.1R3~~<br>Extension of<br>free<br>compulsory<br>pre-primary<br>education<br>from the age<br>of four|~~Target~~|~~Children~~<br>benefitting<br>from<br>tuition fee<br>support|~~ -~~|~~Number~~|~~2500~~|~~7 425~~|~~Q2~~|~~2026~~|~~Providing tuition fee support for the free compulsory pre-~~<br>primary education of at least 7 425 children from the age<br>of four in community and private kindergartens.|
|246<br>|C5.1R4<br>Digital<br>transformatio<br>n of school<br>units with the<br>aim of<br>enhancing<br>digital skills<br>and skills<br>related to<br>STEM<br>education<br>|Target<br>|Classrooms<br>digitally<br>equipped<br>|-<br>|Number<br>|0 <br>|700<br>|Q2<br>|2023<br>|Classrooms in at least 700 schools have been digitally<br>equipped with laptops, projectors, microphones, speakers,<br>digital graphic boards.<br>|
|~~247~~|~~C5.1R4~~<br>Digital<br>transformatio<br>n of school<br>units with the<br>aim of<br>enhancing|~~Target~~|~~Curriculum~~<br>transformat<br>ion and<br>production<br>of<br>educational<br>material for|~~ -~~|~~Number~~|~~0 ~~|~~120~~|~~Q4~~|~~2024~~|~~Curriculum transformation and production of educational~~<br>material for digital skills and STEM methodology for 120<br>school subjects.|

142

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||digital skills<br>and skills<br>related to<br>STEM<br>education||digital<br>skills and<br>STEM<br>methodolo<br>gy||||||||
|248|C5.1R4<br>Digital<br>transformatio<br>n of school<br>units with the<br>aim of<br>enhancing<br>digital skills<br>and skills<br>related to<br>STEM<br>education|Target|Teachers<br>benefitting<br>from In-<br>Service<br>Training &<br>Professiona<br>l <br>Developme<br>nt|-|Number|0|3 375|Q2|2026|At least 3 375 primary and secondary teachers have<br>benefitted from In-Service Training & Professional<br>Development on Digital Competences.|
|249|C5.1R5<br>E-skills<br>Action Plan– <br>Implementati<br>on of specific<br>actions|Milestone|National e-<br>Skills<br>Action Plan<br>is adopted<br>by the<br>Council of<br>Ministers|National e-<br>Skills Action<br>Plan is<br>adopted by<br>the Council<br>of Ministers<br>|-|-|-|Q4|2021|National e-Skills Action Plan is adopted by the Council of<br>Ministers, which shall include at least:<br>• development of an e-learning platform, containing a<br>self-assessment tool for digital fitness, index of all<br>available skilling programmes,<br>and content material on digital skills and cross-sectoral<br>competences;<br>• design and delivery of programmes and interventions for<br>professionals within the<br>public sector in areas such as Project management,<br>Microsoft tools, cybersecurity, social media, e-<br>collaboration and productivity tools;<br>• investment in digital infrastructure.|

143

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|250|C5.1R5<br>E-skills<br>Action Plan– <br>Implementati<br>on of specific<br>actions|Milestone|Implement<br>ation of<br>key<br>measures<br>from the e-<br>Skills<br>Action Plan|Publication<br>of annual<br>report by<br>Deputy<br>Ministry of<br>Research,<br>Innovation<br>and Digital<br>Policy and<br>relevant<br>postings<br>/announceme<br>nts on the e-<br>learning<br>platform<br>|-|-|-|Q4|2025|Full implementation of key measures from the e-Skills<br>Action Plan, which shall include at least:<br>- design and delivery of targeted programmes for<br>professionals within the public sector for digital skills and<br>cross-sectoral competencies (such as project<br>management);<br>- relevant investments in digital infrastructure (such as<br>laptops, computers);<br>- design of one e-learning platform with educational<br>material is provided to include courses offered by<br>educational institutions;<br>- implementation of communication strategy through,<br>amongst others, funded events.|
|251<br>|C5.1I1<br>Construction<br>of two Model<br>Technical<br>Schools<br>|Milestone<br>|Contracts<br>for the<br>constructio<br>n of two<br>Technical<br>Schools<br>|Contracts<br>Signature<br>and initiation<br>of<br>construction<br>|-<br>|-<br>|-<br>|Q4<br>|2022<br>|Signing of two contracts with the contractors selected<br>under a competitive call for proposals for the construction<br>of two Technical Schools - one in Limassol and one in<br>Larnaca - and issue of respective construction initiation<br>orders by the project Engineers.<br>|
|~~252~~|~~C5.1I1~~<br>Construction<br>of two Model<br>Technical<br>Schools|~~Milestone~~|~~Completion~~<br>of<br>constructio<br>n of two<br>Technical<br>Schools|~~Issue of~~<br>Taking-Over<br>Certificates<br>for two<br>construction<br>projects|~~ -~~|~~ -~~|~~ -~~|~~Q2~~|~~2026~~|~~Completion of construction of two Technical Schools -~~<br>one in Limassol and one in Larnaca - and issue of<br>respective taking over certificates. Schools fully<br>operational from start of the school year 2026-2027.|
|253|C5.1I2<br>Skilling,|Target|Completion<br>of trainings|-|Number|0|11<br>500|Q4|2024|Completion of trainings for at least 11 500 participants in<br>programmes for digital skills, skills related to blue and|

144

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for<br>milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for**<br>**milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||Reskilling<br>and<br>Upskilling<br>||for at least<br>11 500<br>participants<br>|||||||green economy, entrepreneurship programmes for<br>unemployed and inactive people and training programmes<br>for people over 55.<br>|
|~~254~~|~~C5.1I2~~<br>Skilling,<br>Reskilling<br>and<br>Upskilling|~~Target~~|~~Completion~~<br>of trainings<br>for at least<br>25 600<br>participants|~~ -~~|~~Number~~|~~11 500~~|~~25~~<br>600|~~Q4~~|~~2025~~|~~Completion of trainings for at least 25 600 participants in~~<br>programmes for digital skills, skills related to blue and<br>green economy, entrepreneurship programmes for<br>unemployed and inactive people and training programmes<br>for people over 55.|

145

**M.** **COMPONENT** **5.2:** **LABOUR MARKET** **,** **SOCIAL PROTECTION AND INCLUSION**

This component of the Cypriot Recovery and Resilience plan addresses: (i) inefficiencies and
gaps in social protection notably for self-employed and people working in non-standard forms
of employment, (ii) the lack of legislation for flexible working arrangements in the form of
teleworking, (ii) challenges related to unemployment and youth unemployment and the high
level of young people not in employment, education or training (NEETs), (iii) gaps in early
childhood education and care (ECEC) and (iv) challenges with respect to social inclusion and
welfare, including a high level of people at risk of poverty or social exclusion (AROPE) and
increasing needs in long-term care.

The reforms and investments included in the component address the country-specific
recommendations on improving the effectiveness of the public employment services and the
education and training system (country specific recommendation 3 of 2019 and country
specific recommendation 2 of 2020), providing social protection for all and introducing
flexible working arrangements (country specific recommendation 2 of 2020), and improving
the efficiency and digitalisation of the public sector (country specific recommendation 1 of
2019 and country specific recommendation 4 of 2020).

It is expected that no measure in this component does significant harm to environmental
objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account
the description of the measures and the mitigating steps set out in the recovery and resilience
plan in accordance with the DNSH Technical Guidance (2021/C58/01).

**-**
**M.1. Description of the reforms and investments for non** **repayable financial support**

Reform 2 (C5.2R2): Flexible work arrangements in the form of telework

The objective of the reform is to promote flexible work arrangements in the form of telework
to enhance work-life balance and increase employment opportunities.

The reform consists of new legislation for flexible work arrangements in the form of telework
and the promotion of collective agreements to regulate telework. It shall also include a
scheme relieving part of staff costs as an incentive for employers to hire unemployed persons
who shall telework.

The implementation of the reform shall be completed by 30 September 2025.

Investment 1 (C5.2I1): Improving the effectiveness of the Department of Labour and Public
Employment Services (PES) and reinforcing support for young people

The objectives of the investment are to: (i) safeguard the successful implementation of
employment schemes through digitalisation of their administration, (ii) improve the
operational performance of the PES, (iii) minimise the risk for young persons not in
employment, education or training (NEETs) to become long-term unemployed, (iv) support
NEETs who are not yet registered with the PES by promoting outreach activities and
facilitating the integration of young registered unemployed in the labour market.

The investment consists of: (i) the set-up of four mobile units for carrying out the outreach
activities for NEETs and (ii) the completion of platforms/IT systems for digitalising the
schemes managed by the Department of Labour, developing a Performance Management
System for the PES and developing an early warning and tracking system for NEETs. In
addition, the investment shall include coaching and career guidance for the labour market
orientation and integration of NEETs and an incentive scheme for employers to hire NEETs.

The implementation of the investment shall be completed by 30 June 2026.

146

Investment 2 (C5.2I2): Establishment of Multifunctional Centres and Childcare Centres

The objective of the investment is to increase the labour market participation of carers (often
women), and to enhance the availability of quality care and social development infrastructure
for children, thereby contributing to gender equality and equal opportunities for all.

The investment consists of a scheme targeted at local authorities and non-governmental
organisations (NGOs) for establishing new or improving existing multifunctional centres and
child centres for children aged 0 to 3 years and 8 months, as well as for children until the age
of 13 based on needs assessment and viability analysis. In addition, in line with Article 7 (2)
of the Recovery and Resilience Facility Regulation, the investment includes a study under the
Technical Support Instrument (TSI) to analyse the state of provision of early childhood
education and care services for young children (aged 0 to school age) in Cyprus and to
develop recommendations for investment in the sector, and specifically in child centres.
Following the recommendations of the TSI project, a national strategy on early childhood
education and care (ECEC) and an accompanying action plan shall be adopted.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (C5.2I3): Establishment of home structures for children, adolescent with
conduct disorders, persons with disabilities and people in need of long-term care

The objectives of the investment are to: (i) support the Republic of Cyprus to meet its
obligations under the Refugee Act 2000-2016 to provide care and to safeguard the rights of
unaccompanied minors who arrive in the Republic, (ii) meet the housing needs for children
and adolescents with particular difficulties who are placed under the guardianship of the
social welfare services, (iii) enhance community-based supported living structures for persons
with disabilities to avoid institutionalisation and social exclusion and (iv) address gaps in
long-term care services.

The investment consists of the establishment of at least eight state structures for children or
persons with disabilities (through a tender procedure) and provision of support for the
establishment or renovation of at least eighteen homes for children, adolescents with conduct
disorders and people in need of long-term care (through an aid scheme).

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C5.2I4): Child centres in municipalities

The objective of this investment is to facilitate the participation and re-entering of workers
with caring responsibilities, mostly women, in the labour market, thereby promoting gender
equality. It further aims at enhancing the social inclusion of children from disadvantaged
and/or migrant background.

The investment consists of the construction of four (4) child care centres in the municipalities
of Ayios Athanasios, Ayia Napa, Paralimni and Yermasoyia.

The implementation of the investment shall be completed by 31 December 2024.

Investment 5 (C5.2I5): Construction of two model special education schools

The objective of the investment is to improve the school environment for pupils with severe
disabilities or other special educational needs and support their academic and social
development.

147

The investment consists of the replacement of two special schools in the Limassol district: (i)
the Special Education School of Apostolos Loucas and (ii) the Red Cross Recovery Special
Needs School. The schools shall be constructed adjacent to each other and shall share the
multi-purpose hall as well as a therapeutic indoor swimming pool.

The implementation of the investment shall be completed by 31 December 2025.

148

**-**
**M.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non** **repayable financial support**

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investmen<br>t)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investmen**<br>**t)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|255|C5.2R2<br>Flexible<br>Work<br>Arrangeme<br>nts in the<br>Form of<br>Telework|Milestone|Entry into force of<br>the law for<br>flexible work<br>arrangements in<br>the form of<br>telework|Provision in the<br>law indicating<br>the entry into<br>force of the law<br>for the flexible<br>work<br>arrangements in<br>the form of<br>telework|-|-|-|Q2|2023|Entry into force of a new law which shall regulate<br>flexible work arrangements in the form of telework.<br>The law shall include a definition of telework,<br>description of the economic activities where<br>telework is applicable, the conditions for taking up<br>telework and the rights and obligations of employers<br>and employees.|
|256|C5.2R2<br>Flexible<br>Work<br>Arrangeme<br>nts in the<br>Form of<br>Telework|Target|Grant awarded for<br>at least 400<br>persons in<br>telework|-|Number|0|400|Q3|2025|Grant awarded to employers to employ at least 400<br>previously unemployed persons after completing 12<br>months of employment with at least 30% in<br>telework.|
|257|C5.2I1<br>Improving<br>the<br>effectivene<br>ss of the<br>Departmen<br>t of Labour<br>and Public<br>Employme<br>nt Services<br>and<br>reinforcing|Target|Set-up and putting<br>into operation of<br>four mobile units<br>for outreach to<br>NEETs||Number|0|4|Q2|2022|Set-up and putting into operation of four mobile<br>units for outreach to young people not in education,<br>employment or training (NEETs).|

149

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investmen<br>t)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investmen**<br>**t)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||support for<br>young<br>people<br>||||||||||
|~~258~~|~~C5.2I1~~<br>Improving<br>the<br>effectivene<br>ss of the<br>Departmen<br>t of Labour<br>and Public<br>Employme<br>nt Services<br>and<br>reinforcing<br>support for<br>young<br>people|~~Target~~|~~Implementation of~~<br>completed, fully<br>operational<br>platforms|~~- ~~|~~Number~~|~~0 ~~|~~3 ~~|~~Q4~~|~~2024~~|~~Implementation of completed, fully operational~~<br>platforms for<br>(1) digitalising the hiring schemes of the<br>Department of Labour,<br>(2) developing a Performance Management System<br>for the Public Employment Services and<br>(3) developing an early warning and tracking system<br>for young people not in education, employment or<br>training (NEETs) for the Public Employment<br>Services.|
|259|C5.2I1<br>Improving<br>the<br>effectivene<br>ss of the<br>Departmen<br>t of Labour<br>and Public<br>Employme<br>nt Services<br>and<br>reinforcing|Target|Grant awarded to<br>employers for<br>hiring at least 600<br>young people not<br>in employment or<br>in education or<br>training (NEETs)|-|Number|0|600|Q4|2025|Grant awarded to employers for hiring at least 600<br>young people (aged 15-29) not in employment,<br>education or training (NEETs), for a 12-month<br>employment period, following completion of a two-<br>month subsidised training period (two months<br>subsidised training and 10-month subsidised<br>employment).|

150

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investmen<br>t)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investmen**<br>**t)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||support for<br>young<br>people<br>||||||||||
|~~260~~|~~C5.2I1~~<br>Improving<br>the<br>effectivene<br>ss of the<br>Departmen<br>t of Labour<br>and Public<br>Employme<br>nt Services<br>and<br>reinforcing<br>support for<br>young<br>people|~~Target~~|~~Coaching and~~<br>career guidance<br>for young people<br>not in<br>employment or in<br>education or<br>training (NEETs)|~~- ~~|~~Number~~|~~0 ~~|~~5 500~~|~~Q2~~|~~2026~~|~~Coaching and career guidance for the labour market~~<br>orientation and integration of young people offered<br>to at least 5 500 young people not in employment,<br>education or training (NEETs) through the public<br>employment services.|
|261|C5.2I2<br>Establishm<br>ent of<br>multifuncti<br>onal<br>centres and<br>childcare<br>centres|Milestone|Adoption of a<br>national strategy<br>on early<br>childhood<br>education and<br>care (ECEC) and<br>an accompanying<br>action plan by the<br>Council of<br>Ministers|Publication of<br>the national<br>strategy on<br>ECEC and the<br>accompanying<br>action plan|-|-|-|Q4|2024|A national strategy on enhancing early childhood<br>education and care (ECEC) covering children aged<br>zero to school age, and an accompanying action plan<br>have been adopted by the Council of Ministers,<br>taking into account the recommendations of the<br>completed TSI project.|
|262|C5.2I2<br>Establishm|Target|Grant awarded to<br>at least ten local|-|Number|0|10|Q4|2024|At least ten local authorities/ Non-Governmental<br>Organisations have received a grant for establishing|

151

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investmen<br>t)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investmen**<br>**t)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||ent of<br>multifuncti<br>onal<br>centres and<br>childcare<br>centres||authorities/ Non-<br>Governmental<br>Organisations for<br>establishing or<br>enhancing<br>Multifunctional<br>Centres or Child<br>Centres|||||||or enhancing Multifunctional Centres or Child<br>Centres.|
|263|C5.2I2<br>Establishm<br>ent of<br>multifuncti<br>onal<br>centres and<br>childcare<br>centres|Target|Grant awarded to<br>at least 27 local<br>authorities/ Non-<br>Governmental<br>Organisations for<br>establishing or<br>enhancing<br>Multifunctional<br>Centres or Child<br>Centres|-|Number|10|27|Q2|2026|At least 27 local authorities/ Non-Governmental<br>Organisations have received a grant for establishing<br>or enhancing Multifunctional Centres or Child<br>Centres.|
|264|C5.2I3<br>Establishm<br>ent of<br>Home<br>structures<br>for<br>children,<br>adolescent<br>with<br>conduct<br>disorders<br>and|Target|Buildings for the<br>needs of children<br>or persons with<br>disabilities and<br>support for homes<br>for children,<br>adolescents with<br>conduct disorders<br>and people in<br>need of long-term<br>care|-|Number|0|13|Q4|2024|Purchase and completed renovation of at least four<br>buildings for the needs of children or persons with<br>disabilities (through a public procurement<br>procedure) and provision of support for the<br>establishment or renovation of at least nine homes<br>for children, adolescents with conduct disorders and<br>people in need of long-term care (through an aid<br>scheme).|

152

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investmen<br>t)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investmen**<br>**t)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||persons<br>with<br>disabilities<br>and people<br>in need of<br>long term<br>care (LTC)||||||||||
|265|C5.2I3<br>Establishm<br>ent of<br>Home<br>structures<br>for<br>children,<br>adolescent<br>with<br>conduct<br>disorders<br>and<br>persons<br>with<br>disabilities<br>and people<br>in need of<br>long term<br>care (LTC)|Target|Buildings for the<br>needs of children<br>or persons with<br>disabilities and<br>support for homes<br>for children,<br>adolescents with<br>conduct disorders<br>and people in<br>need of long-term<br>care|-|Number|13|26|Q2|2026|Purchase and renovation of at least eight state<br>structures for children or persons with disabilities<br>(through a public procurement procedure) and<br>provision of support for the establishment or<br>renovation of at least eighteen home structures for<br>children, adolescents with conduct disorders and<br>people in need of long-term care (through an aid<br>scheme).|
|266|C5.2I4<br>Child<br>Centres in<br>Municipali|Target|Construction of at<br>least one child<br>centre|-|Number|0|1|Q4|2022|Completion of construction and issue of taking-over<br>certificate of at least one child centre in one of the<br>following municipalities: Ayios Athanasios, Ayia<br>Napa, Paralimni and Yermasoyia.|

153

|Sequential<br>Number|Related<br>Measure<br>(Reform<br>or<br>Investmen<br>t)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative<br>timeline for<br>completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform**<br>**or**<br>**Investmen**<br>**t)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
||ties||||||||||
|267<br>|C5.2I4<br>Child<br>Centres in<br>Municipali<br>ties<br>|Target<br>|Construction of at<br>least four child<br>centres<br>|- <br>|Number<br>|1 <br>|4 <br>|Q4<br>|2024<br>|Completion of construction and issue of taking-over<br>certificates of four child centres (one child centre in<br>Ayios Athanasios, one in Ayia Napa, one in<br>Paralimni and one in Yermasoyia).<br>|
|~~268~~<br>|~~C5.2I5~~<br>Constructi<br>on of Two<br>Model<br>Special<br>Education<br>Schools<br>|~~Milestone~~<br>|~~Signing of~~<br>contract with the<br>selected tenderer<br>(contractor)<br>|~~The contract~~<br>shall be signed<br>with the<br>selected<br>tenderer<br>(contractor)<br>|~~- ~~<br>|~~- ~~<br>|~~- ~~<br>|~~Q4~~<br>|~~2022~~<br>|~~Signing of contract with the selected tenderer(s)~~<br>(contractor (s)) selected under a competitive call for<br>proposals for the construction of two model schools<br>in Limassol - the Special Education School of<br>Apostolos Loucas and the Red Cross Recovery<br>Special Needs School.<br>|
|~~269~~|~~C5.2I5~~<br>Constructi<br>on of Two<br>Model<br>Special<br>Education<br>Schools|~~Milestone~~|~~Completion of~~<br>construction of<br>Apostolos Loukas<br>& Red Cross<br>Special needs<br>school|~~Issue of taking-~~<br>over certificates<br>by the project<br>engineer<br>verified<br>administratively<br>and on the spot,<br>by the Head of<br>Technical<br>Services of the<br>Ministry of<br>Education &<br>Culture.|~~- ~~|~~- ~~|~~- ~~|~~Q4~~|~~2025~~|~~Completion of construction of the Special Education~~<br>School of Apostolos Loucas and of the Red Cross<br>Recovery Special Needs School.|

154

**M.3. Description of the reforms and investments for the loan**

Reform 1 (C5.2R1): Reform of the Social Insurance System and Restructuring of the Social
Insurance Services

The objectives of the reform are to widen access to social protection and to improve the
operational efficiency and effectiveness of the Social Insurance Services. More specifically,
the reform shall extend and improve the cover of benefits such as unemployment benefit,
accident at work benefit and occupational disease benefit in particular for the self-employed
and people working with contracts or new forms of employment (such as platform workers).
In addition, the reform shall improve the timeliness and accuracy of the services provided to
citizens and minimise fraud and errors through risk analysis and quality control mechanisms.

The reform consists of: (i) a revision of the legislation for the Social Security System which
shall incorporate the extension of the social security coverage to self-employed and nonstandard forms of employment, such as platform work, and (ii) the re-engineering of business
processes, personnel training, set-up of data analytics capacity and digitalisation of services,
as well as (iii) the gradual upgrading of the existing IT Systems to an Integrated Information
System.

The implementation of the reform shall be completed by 30 June 2026.

155

**M.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan**

|Sequential<br>Number|Related<br>Measure<br>(Reform or<br>Investment)|Milestone<br>/ Target|Name|Qualitative<br>indicators<br>(for milestones)|Quantitative indicators<br>(for targets)|Col7|Col8|Indicative timeline<br>for completion|Col10|Description of each milestone and target|
|---|---|---|---|---|---|---|---|---|---|---|
|**Sequential**<br>**Number**|**Related**<br>**Measure**<br>**(Reform or**<br>**Investment)**|**Milestone**<br>**/ Target**|**Name**|**Qualitative**<br>**indicators**<br>**(for milestones)**|**Unit of**<br>**measure**|**Baseline**|**Goal**|**Quarter**|**Year**|**Year**|
|270|C5.2R1<br>Reform of<br>the Social<br>Insurance<br>System and<br>Restructurin<br>g of the<br>Social<br>Insurance<br>Services|Milestone|Entry into<br>force of the<br>revised<br>Social<br>Insurance<br>Law|Provision in the<br>amending law<br>indicating the entry<br>into force of the<br>revisions to the<br>Social Insurance<br>Law|-|-|-|Q2|2023|Entry into force of the revised Social Insurance<br>Law, which shall incorporate the extension of<br>the social security coverage to self-employed<br>and non-standard forms of employment, such<br>as platform work.|
|271|C5.2R1<br>Reform of<br>the Social<br>Insurance<br>System and<br>Restructurin<br>g of the<br>Social<br>Insurance<br>Services|Milestone|Completion<br>of the new<br>integrated<br>digital<br>Social<br>Security<br>System|Deliverables<br>acceptance team<br>(contracting<br>authority side) signs<br>off on analysis,<br>design and<br>development report|-|-|-|Q2|2026|Completion and go-live of the new integrated<br>digital Social Security System including<br>payment module, benefits administration<br>module, data analytics and interoperability<br>with other systems.|

156

**2.** **Estimated total cost of the recovery and resilience plan**

The estimated total cost of the recovery and resilience plan of Cyprus is
EUR 1 206 400 000.

**SECTION** **2:** **FINANCIAL** **SUPPORT**

**1.** **Financial contribution**

The instalments referred to in Article 2(2) shall be organised in the following

manner:

1.1. First Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|21 <br>|C2.1R2<br>Independence of Cyprus Transmission System<br>Operator (TSOC) from the incumbent Electricity<br>Authority of Cyprus|Milestone|Law for the<br>Regulation of the<br>Electricity Market<br>of 2021|
|23 <br>|C2.1R4<br>Energy Storage Regulatory Framework|Milestone|Amendment of the<br>Transmission and<br>Distribution Rules<br>(TDRs) and<br>Trading and<br>Settlement Rules<br>(TSRs)|
|24 <br>|C2.1I1<br>Promoting energy efficiency investments in<br>SMEs, municipalities, communities and the wider<br>public sector <br>|Milestone <br>|Support scheme<br>for Promoting<br>energy efficiency<br>investments in<br>SMEs,<br>municipalities,<br>communities and<br>the wider public<br>sector <br>|
|~~27~~|~~C2.1I2~~<br>Promoting renewables and individual energy<br>efficiency measures in dwellings and tackling<br>energy poverty in households with people with<br>disabilities|~~Milestone~~|~~First call for~~<br>proposals for<br>Promoting<br>renewables and<br>individual energy<br>efficiency<br>measures in<br>dwellings|
|30|C2.1I3<br>Encouraging the use of renewables and energy<br>savings by local/wider public authorities as well<br>as NGOs and facilitating the transition of local<br>communities towards climate mitigation &<br>adaptation|Milestone|First call for<br>proposals to<br>support local<br>authorities in<br>energy efficiency<br>measures|

157

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~93~~|~~C3.1I2~~<br>Enhancement of isotopic database of traditional<br>Cypriot products.|~~Milestone~~|~~Liquid~~<br>Chromatography-<br>Isotopic Ratio<br>Mass<br>Spectrometer (LC-<br>IRMS) equipment|
|109<br>|C3.1R4<br>Enhancement of circular economy in the Industry<br>|Milestone<br>|Approval of the<br>National Action<br>Plan for the<br>Enhancement of<br>Circular Economy<br>in Cyprus<br>|
|~~160~~<br>|~~C3.4R3~~<br>Introduce new framework for evaluation and<br>selection process for filling public service<br>vacancies and new regulations for the evaluation<br>of employees’ performance<br>|~~Milestone~~<br>|~~Entry into force of~~<br>legislation for the<br>evaluation and<br>selection process<br>for public service<br>vacancies and<br>regulations for<br>employees’<br>performance<br>evaluation.<br>|
|~~186~~|~~C3.4I8~~<br>Upgrading the infrastructure of courts|~~Milestone~~|~~Extension of the~~<br>Famagusta District<br>Court|
|188<br>|C3.4R10<br>Improving the legal and institutional framework<br>for fighting corruption<br>|Milestone<br>|Entry into force of<br>the law on<br>Transparency in<br>Decision-Making<br>and Related<br>Matters<br>|
|~~189~~|~~C3.4R10~~<br>Improving the legal and institutional framework<br>for fighting corruption|~~Milestone~~|~~Entry into force of~~<br>the law to protect<br>whistle-blowers|
|192|C3.5R2<br>Framework and Action Plan for addressing NPLs|Milestone|Entry into force of<br>the package of<br>amending laws<br>regarding credit<br>acquiring<br>companies (CAC)<br>and credit<br>servicers to<br>improve the<br>working<br>environment for<br>non-performing<br>loans management|

158

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~232~~<br>|~~C4.2I1~~<br>Digitalisation in various Central Government<br>Ministries - Services<br>|~~Milestone~~<br>|~~Repository system~~<br>for audit and<br>control:<br>information for<br>monitoring<br>implementation of<br>RRF<br>|
|~~249~~|~~C5.1R5~~<br>E-skills Action Plan– Implementation of specific<br>actions|~~Milestone~~|~~National e-Skills~~<br>Action Plan is<br>adopted by the<br>Council of<br>Ministers|
|||Instalment<br>Amount|EUR 97 701 149|

1.2. Second Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|7 <br>|C1.1I2<br>Cyprus Innovative Public Health information and<br>communications technology (ICT) System|Milestone|Influenza Sentinel<br>Surveillance<br>(ISS)System|
|35 <br>|C2.1I5<br>Energy Efficiency Upgrading of public buildings|Target|Thermal insulation<br>and photovoltaic<br>systems installed<br>in schools|
|40|C2.1I7<br>Mass installation and operation by the Distribution<br>System Operator (DSO) of Smart Metering<br>Infrastructure (Advanced Metering Infrastructure)|Milestone|Contract Signature<br>for smart<br>electricity<br>metering<br>infrastructure|
|45|C2.1I9<br>Forests fire protection|Milestone|Signing of the<br>Agreements/<br>Contracts<br>Signatures for the<br>purchase of<br>firefighting<br>aircraft, vehicles,<br>equipment and<br>provision of<br>services|
|71|C2.3I3<br>Integrated Monitoring and Control Management<br>System for the Water Development Department’s<br>infrastructure|Milestone|Completion of the<br>detailed<br>requirements<br>analysis and<br>system design<br>document|

159

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~87~~|~~C3.1R2~~<br>On-line, cloud-based platform for improving the<br>trade and information symmetry in the fresh<br>produce supply chain|~~ Milestone~~|~~Law on unfair~~<br>practices in<br>transactions in the<br>local fresh<br>produce market|
|97|C3.1I5<br>Creation of a National Commercial Identity and<br>promotion of thetraditional product “halloumi”|Milestone|Action Plans for<br>(a) the “made in<br>Cyprus” branding,<br>and (b) for the<br>promotion of the<br>halloumi cheese|
|100<br>|C3.1I7<br>Scheme for the enhancement of large enterprises<br>competitiveness in the manufacturing sector<br>|Milestone<br>|Start of the grant<br>scheme on large<br>enterprises in the<br>Manufacturing<br>Sector<br>|
|~~105~~|~~C3.1I9~~<br>Promotion of circular economy in hotel<br>establishments|~~Target~~|~~Coaching scheme~~<br>for circular<br>economy|
|122|C3.2R2<br>Incentives for investments and human capital in<br>R&I|Milestone|Tax exemption of<br>legal entities for<br>investing in<br>innovative<br>companies|
|125<br>|C3.2I1<br>Set up and operate a central Knowledge Transfer<br>Office (KTO)<br>|Milestone<br>|Launch of KTO<br>|
|~~134~~<br>|~~C3.3R1~~<br>Facilitation of Strategic investments<br>|~~Milestone~~<br>|~~Law for strategic~~<br>investments<br>|
|~~155~~|~~C3.4R1~~<br>Enhance the administrative capacity and improve<br>the functioning of public administration for better<br>policy making and implementation|~~Milestone~~|~~Action Plan on the~~<br>efficient<br>management of<br>human resource<br>issues in the<br>national public<br>administration<br>|
|187|C3.4R10<br>Improving the legal and institutional framework<br>for fighting corruption|Milestone|Entry into force of<br>the law<br>establishing the<br>Independent<br>Authority against<br>Corruption|
|207|C3.5R9<br>Improving tax collection and effectiveness of the<br>Tax Department|Milestone|Operation of VAT<br>Services within an<br>Integrated Tax<br>Administration<br>System (ITAS)|

160

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~214~~|~~C4.1R1~~<br>Empower the National Regulatory Authority<br>(OCECPR)|~~Milestone~~|~~Launch of the~~<br>geographical<br>survey and entry<br>into force of<br>secondary<br>legislation|
|233<br>|C4.2I1<br>Digitalisation in various Central Government<br>Ministries - Services<br>|Target<br>|Start of the digital<br>upgrade of a<br>number of central<br>government<br>ministries and<br>departments<br>|
|~~257~~|~~C5.2I1~~<br>Improving the effectiveness of the Department of<br>Labour and Public Employment Services and<br>reinforcing support for young people|~~Target~~|~~Set-up and putting~~<br>into operation of<br>four mobile units<br>for outreach to<br>NEETs|
|||Instalment<br>Amount|EUR 97 701 149|

1.3. Third Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|5 <br>|C1.1I1<br>New facilities for the Cyprus Blood Establishment<br>and procurement of the latest technology attendant<br>equipment|Milestone|Contract signature<br>for the<br>construction of the<br>Cyprus Blood<br>Establishment|
|22 <br>|C2.1R3<br>Digital One-Stop Shops to streamline RES<br>projects permitting and to facilitate Energy<br>Renovation in Buildings|Milestone|Fully operational<br>IT platform|
|38|C2.1I6<br>Upgrading renewable energy and smart grids<br>testing infrastructure at the University of Cyprus|Milestone|Signature of<br>contract for the<br>installation of<br>equipment to<br>upgrade the<br>electricity grid<br>into a smart grid|
|77|C2.3I5<br>Anti-flood and water collection measures|Milestone|Completion of<br>construction<br>works of drainage<br>network and<br>reconstruction of<br>streets and<br>pavements in areas<br>of Nicosia|

161

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~82~~|~~C2.3I7~~<br>Eastern Nicosia infrastructure for the re-use of<br>treated wastewater|~~Milestone~~|~~Signing of the~~<br>contracts for the<br>construction of a<br>winter storage<br>reservoir|
|85|C3.1R1<br>Move agricultural practices from the 20th century<br>to the 21st century by investing in a national<br>centre for excellence in agri-tech|Milestone|Cooperation<br>between the<br>Agricultural<br>Research Institute<br>and public<br>universities, for<br>joint MSc and<br>PhD programmes|
|95|C3.1I3<br>Upskill existing and future farmers|Target|Scholarships<br>granted|
|120|C3.2R1<br>National R&I Policy and policy tools|Milestone|Adoption of the<br>national R&I<br>Strategy and of the<br>Action Plan to<br>implement it|
|123|C3.2R3<br>Policies to foster access to publicly funded<br>research infrastructure and laboratories|Milestone|Digital registry to<br>record and publish<br>research<br>infrastructure|
|127<br>|C3.2I2<br>Innovation funding programmes for start-ups,<br>innovative companies and SMEs<br>|Milestone<br>|Signature of grant<br>agreements for<br>50% of budget<br>|
|~~130~~|~~C3.2I3~~<br>R&I funding program on green transition|~~Milestone~~|~~Signature of grant~~<br>agreements for the<br>whole budget|
|136|C3.3R2<br>Enhancing Fast-Track Business Activation<br>Mechanism|Milestone|Establishment of a<br>platform where<br>investors can track<br>their online<br>application and<br>interact with the<br>competent<br>authorities|
|143|C3.3R6<br>Incentives to promote mergers and acquisitions.|Milestone|Action Plan for<br>incentives for<br>mergers and<br>acquisitions|
|145|C3.3I3<br>Consulting services for SMEs|Milestone|Support scheme<br>on consulting<br>services for SMEs|

162

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~151~~|~~C3.3I6~~<br>State funded equity fund|~~Milestone~~|~~Setup of the~~<br>Registered<br>Alternative<br>Investment Fund<br>in the Cyprus<br>Securities and<br>Exchange<br>Commission<br>register|
|171<br>|C3.4R7<br>Urban land consolidation<br>|Milestone<br>|Entry into force of<br>the law on urban<br>land consolidation<br>|
|~~173~~|~~C3.4I4~~<br>Enhancing e-system for issuing building permits|~~Milestone~~|~~Enhancement of~~<br>the e-application<br>environment of the<br>Hippodamos<br>System|
|183<br>|C3.4R9<br>Digital transformation of courts<br>|Milestone<br>|e-justice system<br>|
|~~194~~|~~C3.5R3~~<br>Strategy for addressing inadequacies of the<br>property transaction system (title deeds)|~~Milestone~~|~~Extension of the~~<br>New Planning and<br>Building Permit<br>Policy|
|195<br>|C3.5R3<br>Strategy for addressing inadequacies of the<br>property transaction system (title deeds)<br>|Milestone<br>|Entry into force of<br>the amendment of<br>the Sale of<br>Property (Specific<br>Performance) Law<br>|
|~~199~~<br>|~~C3.5R5~~<br>Action plan for the development of a liability<br>monitoring register<br>|~~Milestone~~<br>|~~Action Plan for~~<br>the development<br>of a liability<br>monitoring<br>register<br>|
|~~201~~<br>|~~C3.5R6~~<br>Reinforcing and strengthening the insolvency<br>framework<br>|~~Milestone~~<br>|~~Full~~<br>implementation<br>and full operation<br>of the legal and<br>institutional<br>framework for<br>insolvency<br>|
|~~204~~|~~C3.5R8~~<br>Enhancing supervision of Insurance and Pension<br>Funds|~~Target~~|~~Strengthening the~~<br>human resources<br>of the Registrar of<br>Occupational<br>Retirement<br>Benefits Fund<br>(RORBF) and the<br>Insurance<br>Companies<br>Control Service<br>(ICCS)|

163

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~209~~|~~C3.5R10~~<br>Addressing Aggressive Tax Planning|~~Milestone~~|~~Entry into force of~~<br>the law to tackle<br>aggressive tax<br>planning|
|224<br>|C4.2R1<br>Digital Services Factory<br>|Milestone<br>|Definition of the<br>Service Delivery<br>Model for the<br>Digital Services<br>Factory<br>|
|~~227~~<br>|~~C4.2R2~~<br>Definition and implementation of a new cloud<br>policy with regard to government IT systems and<br>services<br>|~~Milestone~~<br>|~~The government~~<br>cloud (G-cloud) is<br>operational<br>|
|~~243~~|~~C5.1R3~~<br>Extension of free compulsory pre-primary<br>education from the age of four|~~Milestone~~|~~Entry into force of~~<br>the new Law<br>regarding<br>extension of free<br>compulsory pre-<br>primary education<br>from the age of<br>four years and<br>adoption of grant<br>scheme by the<br>Council of<br>Ministers|
|251|C5.1I1<br>Construction of two Model Technical Schools|Milestone|Contracts for the<br>construction of<br>two Technical<br>Schools|
|266<br>|C5.2I4<br>Child Centres in Municipalities<br>|Target<br>|Construction of at<br>least one child<br>centre<br>|
|~~268~~|~~C5.2I5~~<br>Construction of Two Model Special Education<br>Schools|~~Milestone~~|~~Signing of~~<br>contract with the<br>selected tenderer<br>(contractor)|
|||Instalment<br>Amount|EUR 132 183 908|

164

1.4. Fourth Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|3 <br>|C1.1R2<br>Design of an Electronic platform for the<br>surveillance of Nosocomial Antibiotic<br>Consumption and Healthcare– Associated<br>Infections|Milestone|Adoption of the<br>list of health care<br>facilities|
|19 <br>|C2.1R1<br>Green Taxation|Milestone|Entry into force of<br>a law introducing<br>a carbon tax for<br>fuels, a levy on<br>water and a charge<br>on household/<br>landfill waste|
|43|C2.1I8<br>Monitoring and reduction of GHG emissions in<br>agriculture|Milestone|Purchase and<br>installation of<br>monitoring units<br>for measuring<br>GHG emissions<br>from agriculture|
|48|C2.1I10<br>Market Management System to facilitate the<br>opening of the electricity market to competition|Milestone|Completion,<br>installation and<br>roll-out of the<br>Market<br>Management<br>System and<br>training of<br>personnel|
|74<br>|C2.3I4<br>Smart Water and Sewerage Networks<br>Management<br>|Target<br>|Delivery and<br>installation of<br>photovoltaics at<br>the Larnaca<br>Wastewater<br>Treatment Plant<br>|
|~~80~~|~~C2.3I6~~<br>Enhance water security for Nicosia and Larnaca<br>regions|~~Target~~|~~Completion of~~<br>construction of<br>two glass lined<br>steel reservoirs|
|84|C2.3I8<br>Protection of the marine ecosystem from hazards<br>through oil spills|Milestone|Delivery, quality<br>inspection to<br>verify their<br>operational<br>effectiveness and<br>acceptance of<br>three vessels and<br>two aerial<br>spraying systems|
|86|C3.1R1<br>Move agricultural practices from the 20th century<br>to the 21st century by investing in a national<br>centre for excellence in agri-tech|Milestone|New joint Masters<br>and/or PhDs in the<br>wider domain of<br>Agriculture|

165

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~91~~|~~C3.1I1~~<br>Marine aquaculture construction|~~Milestone~~|~~Construction of~~<br>the collaborative<br>marine<br>aquaculture|
|103|C3.1I8<br>Enhancing the added value of the tourism sector<br>with emphasis on the country side, mountainous<br>and remote areas|Target|Grant to SMEs to<br>promote the<br>tourism sector|
|132|C3.2I4<br>Funding to organisations performing R&D<br>activities on dual technologies|Milestone|Signing of grant<br>agreements which<br>commit 80% of<br>total budget for<br>funding to<br>organisations<br>performing R&D<br>activities on dual<br>technologies|
|135<br>|C3.3R1<br>Facilitation of Strategic investments<br>|Milestone<br>|Organisational<br>capacity’s<br>enhancement for<br>the facilitation of<br>strategic<br>investments<br>|
|~~140~~|~~C3.3R4~~<br>Design and establish a National Promotional<br>Agency|~~Milestone~~|~~Approval by the~~<br>Council of<br>Ministers of the<br>roadmap for the<br>creation and<br>establishment of a<br>National<br>Promotional<br>Agency|
|144|C3.3I2<br>Creation of a Regulatory Sandbox to enable<br>FinTech|Milestone|Regulatory<br>Sandbox with a<br>view on FinTech<br>and innovative<br>technologies|
|147|C3.3I4<br>Scheme for the digital upgrade of enterprises|Milestone|Publication of call<br>for proposals<br>following<br>approval of the<br>scheme by the<br>Council of<br>Ministers|
|158|C3.4R2<br>Regulate flexible working arrangements in the<br>public sector|Milestone|Decision on<br>flexible working<br>arrangements in<br>the public sector|

166

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~193~~|~~C3.5R3~~<br>Strategy for addressing inadequacies of the<br>property transaction system (title deeds)|~~Target~~|~~Reduction of~~<br>backlog of cases<br>for issuance of<br>title deed|
|197|C3.5R4<br>New legal framework and system of exchange of<br>data and credit bureaus|Milestone|Entry into force of<br>the framework and<br>system of<br>exchange of data<br>and credit bureaus<br>Law|
|220<br>|C4.1I2<br>Enhance building cabling to be “Gigabit-ready”<br>and promote connectivity take-up<br>|Target<br>|Expansion of<br>intra-building<br>Gigabit-ready<br>cabling<br>|
|~~229~~|~~C4.2R3~~<br>Police Procedures digitalisation on Digipol|~~Milestone~~|~~Digipol~~<br>operational on a<br>pilot basis|
|236|C4.2I2<br>Digitalisation of the Cyprus Ports Authority|Target|Start of the digital<br>upgrade of the<br>Cyprus Ports<br>Authority|
|246|C5.1R4<br>Digital transformation of school units with the aim<br>of enhancing digital skills and skills related to<br>STEM education|Target|Classrooms<br>digitally equipped|
|255|C5.2R2<br>Flexible Work Arrangements in the Form of<br>Telework|Milestone|Entry into force of<br>the law for<br>flexible work<br>arrangements in<br>the form of<br>telework|
|||Instalment<br>Amount|EUR 114 942 529|

167

1.5. Fifth Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|9 <br>|C1.1I3<br>Purchase/replacement of medical equipment in<br>hospitals|Target|Health institutions<br>having benefitted from<br>the financial support<br>scheme|
|13 <br>|C1.1I6<br>Deployment of generic cross border e-health<br>services in Cyprus|Milestone|Completion of the<br>analysis, design and<br>development phase of<br>the IT System for cross-<br>border e-health services|
|28|C2.1I2<br>Promoting renewables and individual energy<br>efficiency measures in dwellings and tackling<br>energy poverty in households with people with<br>disabilities|Target|Dwellings and<br>households with  people<br>with disabilities having<br>improved their energy<br>performance|
|31|C2.1I3<br>Encouraging the use of renewables and energy<br>savings by local/wider public authorities as well<br>as NGOs and facilitating the transition of local<br>communities towards climate mitigation &<br>adaptation|Target|Investments undertaken<br>by local authorities or<br>NGOs that have<br>improved their energy<br>performance, and<br>resilience to climate<br>change|
|36|C2.1I5<br>Energy Efficiency Upgrading of public buildings|Target|Completion of set up and<br>installation of<br>photovoltaics system at<br>the Nicosia General<br>Hospital|
|46|C2.1I9<br>Forests fire protection|Milestone|Delivery of firefighting<br>aircraft, vehicles and<br>equipment|
|55|C2.2R3<br>Progressively phase out the most polluting<br>vehicles, especially in polluted urban areas|Milestone|Entry into force of the<br>legislative/administrative<br>acts related to the<br>phasing out of the most<br>polluting vehicles|
|60<br>|C2.2I2<br>Creation of electro-mobility infrastructure<br>|Target<br>|Installation of at least<br>330 charging points, due<br>to the support granted<br>|
|~~62~~<br>|~~C2.2I3~~<br>Promote widespread use of Electric Vehicles<br>(EVs)<br>|~~Target~~<br>|~~Purchase of electric~~<br>vehicles, electric<br>bicycles (at least 2 050),<br>due to the support<br>granted<br>|
|~~64~~|~~C2.2I3~~<br>Promote widespread use of Electric Vehicles<br>(EVs)|~~Target~~|~~Scrapping of high~~<br>emission vehicles, due to<br>the support granted|
|67|C2.3I1<br>Choirokitia‑ Famagusta Conveyor Replacement|Milestone|Preparation of tender<br>documents and issue call<br>for tenders|

168

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~89~~|~~C3.1R3~~<br>Genetic improvement of the Cyprus sheep and<br>goat population|~~ Target~~|~~Upgrade of record~~<br>keeping in farms and<br>participation of farmers<br>in AGRICYGEN project|
|96<br>|C3.1I4<br>Initiate the setup of an Eco-Industrial Science<br>Park<br>|Milestone<br>|Action Plan for the<br>Science Park<br>|
|~~112~~<br>|~~C3.1I12~~<br>Waste management towards circular economy<br>|~~Milestone~~<br>|~~Signature of the~~<br>contracts for the<br>installation of Green<br>kiosks, construction of<br>reuse & repair centres<br>and installation of<br>composting systems<br>|
|~~128~~|~~C3.2I2~~<br>Innovation funding programmes for start-ups,<br>innovative companies and SMEs|~~Target~~|~~Organisations supported~~<br>to carry out R&I related<br>activities|
|149<br>|C3.3I5<br>Support extroversion and openness of Cyprus<br>firms to international trade<br>|Target<br>|Enterprises supported for<br>trade extroversion<br>activities<br>|
|~~156~~<br>|~~C3.4R1~~<br>Enhance the administrative capacity and improve<br>the functioning of public administration for better<br>policy making and implementation<br>|~~Milestone~~<br>|~~New human resources~~<br>management framework<br>for Cyprus Police<br>|
|~~163~~<br>|~~C3.4R5~~<br>Enhancement of the capacity of the Law Office<br>|~~Milestone~~<br>|~~New IT system for the~~<br>Law Office<br>|
|~~167~~|~~C3.4I3~~<br>Economic Policy Modelling Hub|~~Milestone~~|~~Setting up a Modelling~~<br>Hub for Economic<br>Policy Analysis|
|180|C3.4R8<br>Efficiency of Justice|Milestone|Entry into force of new<br>Rules of Civil Procedure|
|191<br>|C3.5R1<br>Completing the legal framework for Crisis<br>Management for Credit Institutions<br>|Milestone<br>|Entry into force of the<br>amendment of the<br>national insolvency<br>framework for credit<br>institutions, and<br>introduction of<br>government tools for<br>preservation of financial<br>stability<br>|
|~~196~~|~~C3.5R3~~<br>Strategy for addressing inadequacies of the<br>property transaction system (title deeds)|~~Milestone~~|~~Review of the Streets~~<br>and Building Regulation|
|203|C3.5R7<br>Strategy for Combating Financial Illiteracy|Milestone|Strategy for Combating<br>Financial Illiteracy|
|205|C3.5R8<br>Enhancing supervision of Insurance and Pension<br>Funds|Milestone|Supervisory tools<br>including data collection<br>and analysis tool|

169

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~206~~|~~C3.5I1~~<br>Enhancement of the Supervisory Function of the<br>Cyprus Securities and Exchange Commission|~~Milestone~~|~~Digital system for~~<br>supervision of<br>transactions for the<br>Cyprus Securities and<br>Exchange Commission|
|212|C3.5I2 Modernisation of Customs and Electronic<br>Payment System|Target|Putting into operation<br>the information systems– <br>envisaged under the<br>Union Customs Code<br>(UCC)|
|217<br>|C4.1I1<br>Expansion of Very High Capacity Networks in<br>underserved areas<br>|Milestone<br>|Start of very high<br>capacity networks’<br>deployment in<br>underserved areas<br>|
|~~225~~<br>|~~C4.2R1~~<br>Digital Services Factory<br>|~~Target~~<br>|~~Expansion of delivery of~~<br>government services<br>online through the<br>Digital Services Factory<br>|
|~~231~~<br>|~~C4.2R4~~<br>Setting up the beneficial ownership registry<br>|~~Milestone~~<br>|~~Beneficial ownership~~<br>registry available for use<br>|
|~~234~~|~~C4.2I1~~<br>Digitalisation in various Central Government<br>Ministries - Services|~~Target~~|~~Advancement of the~~<br>digital upgrade of a<br>number of central<br>government ministries<br>and departments|
|241|C5.1R2<br>A new teacher and school evaluation system|Milestone|Entry into force of the<br>law for establishing a<br>new Teacher and School<br>Evaluation mechanism|
|||Instalment<br>Amount|EUR 149 425 287|

170

1.6. Sixth Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|11 <br>|C1.1I4<br>Accreditation of public and private hospitals <br>|Target <br>|Health institutions<br>having benefitted<br>from the scheme<br>covering<br>accreditation<br>related costs <br>|
|~~39 ~~<br>|~~C2.1I6~~<br>Upgrading renewable energy and smart grids<br>testing infrastructure at the University of Cyprus|~~Milestone~~|~~Delivery,~~<br>successful<br>installation and<br>acceptance of the<br>equipment for<br>smart grids|
|52 <br>|C2.2R1<br>Establishment of an Intelligent Transport System<br>using Digital Twin technologies <br>|Target <br>|Delivery and<br>installation of at<br>least 150 sensors <br>|
|~~57~~|~~C2.2I1~~<br>Implementation of Sustainable Urban Mobility<br>Projects (SUMP) and accessibility enhancing<br>measures|~~Milestone~~|~~Contracts~~<br>signature for the<br>construction work<br>of sustainable<br>transport<br>infrastructure and<br>ancillary<br>installations|
|69|C2.3I2<br>Water Treatment Plants: upgrade for water quality<br>improvement|Milestone|Completion of the<br>works for the<br>installation of<br>activated carbon<br>polishing units  in<br>Tersefanou,<br>Asprokremmos<br>and Limassol<br>Water Treatment<br>Plants|
|72|C2.3I3<br>Integrated Monitoring and Control Management<br>System for the Water Development Department’s<br>infrastructure|Target|Delivery and<br>installation of at<br>least 50% of the<br>equipment|
|78<br>|C2.3I5<br>Anti-flood and water collection measures<br>|Milestone<br>|Completion of<br>construction<br>works for the<br>rainwater<br>collection and<br>recycling system<br>in Kladeri area<br>|
|~~88~~|~~C3.1R2~~<br>On-line, cloud-based platform for improving the<br>trade and information symmetry in the fresh<br>produce supply chain|~~ Milestone~~|~~Platform for~~<br>recording<br>transactions in the<br>local fresh<br>produce market|

171

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~169~~|~~C3.4R6~~<br>New legal framework for Local Authorities and<br>relevant support measures|~~Milestone~~|~~New legal~~<br>framework on<br>local authorities|
|181<br>|C3.4R8<br>Efficiency of Justice<br>|Target<br>|Reducing the<br>backlog of cases<br>and appeals<br>|
|~~208~~|~~C3.5R9~~<br>Improving tax collection and effectiveness of the<br>Tax Department|~~Milestone~~|~~Integration of~~<br>operations of the<br>direct tax<br>administration<br>department within<br>the ITAS|
|216|C4.1R2<br>Empower the National Broadband Competence<br>Office (DEC of the DMRIDP)|Milestone|Entry into force of<br>the administrative<br>acts for very high<br>capacity networks’<br>deployment|
|||Instalment<br>Amount|EUR 74 712 644|

1.7. Seventh Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|1 <br>|C1.1R1<br>National Centre for Clinical Evidence and Quality<br>Improvement <br>|Target <br>|Clinical protocols<br>prepared, audited<br>and peer reviewed<br> <br>|
|~~25 ~~<br>|~~C2.1I1~~<br>Promoting energy efficiency investments in<br>SMEs, municipalities, communities and the wider<br>public sector|~~Target~~|~~Entities (SMEs,~~<br>municipalities,<br>communities and<br>the wider public<br>sector) having<br>implemented<br>energy efficiency<br>interventions|
|33|C2.1I4<br>Reduction of CO2 emissions in industries,<br>businesses and organisations|Target|Emissions reduced|
|41|C2.1I7<br>Mass installation and operation by the Distribution<br>System Operator (DSO) of Smart Metering<br>Infrastructure (Advanced Metering Infrastructure)|Target|Delivery and<br>installation of<br>smart meters|
|54|C2.2R2<br>Provide the regulatory framework for an<br>interoperable and effective electric vehicle (EV)<br>recharging infrastructure and an efficient EV<br>recharging market|Milestone|Entry into force of<br>legislation related<br>to electric vehicle<br>charging points|

172

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~75~~|~~C2.3I4~~<br>Smart Water and Sewerage Networks<br>Management|~~Target~~|~~Delivery and~~<br>installation of at<br>least 200 quality<br>and pressure<br>sensors|
|98|C3.1I6<br>Scheme for modernisation and digitalisation of<br>enterprises engaged in manufacturing and trading<br>of agricultural products|Target|Grants to SMEs<br>engaged with trade<br>and production of<br>agricultural<br>products|
|101<br>|C3.1I7<br>Scheme for the enhancement of large enterprises<br>competitiveness in the manufacturing sector<br>|Target<br>|Grants to large<br>enterprises in the<br>Manufacturing<br>Sector<br>|
|~~107~~|~~C3.1I10~~<br>Enrichment of the tourism product in rural,<br>mountainous and remote areas|~~Milestone~~|~~Aphrodite Route~~|
|121<br>|C3.2R1<br>National R&I Policy and policy tools<br>|Milestone<br>|Completion of the<br>Action Plan for<br>the R&I Strategy<br>|
|~~ 124~~|~~C3.2R3~~<br>Policies to foster access to publicly funded<br>research infrastructure and laboratories|~~Milestone~~|~~Collaboration of~~<br>Research<br>Performing<br>Organisations with<br>business and spin-<br>offs|
|138<br>|C3.3R3<br>Modernisation of the Companies Law<br>|Milestone<br>|Submission of the<br>draft law to the<br>Parliament for<br>approval,<br>restructuring the<br>Companies Law<br>|
|~~142~~|~~C3.3R5~~<br>Strategic Investor of the Cyprus Stock Exchange|~~Milestone~~|~~Selection of a~~<br>strategic investor<br>to buy a<br>controlling stake<br>in Cyprus Stock<br>Exchange|
|159<br>|C3.4R2<br>Regulate flexible working arrangements in the<br>public sector<br>|Milestone<br>|Implementation of<br>flexible working<br>arrangements<br>|
|~~170~~|~~C3.4R6~~<br>New legal framework for Local Authorities and<br>relevant support measures|~~Target~~|~~Number of local~~<br>authority staff<br>participating in<br>capacity building|
|174|C3.4I4<br>Enhancing e-system for issuing building permits|Milestone|Enhancement of<br>planning and<br>control and project<br>management<br>functionalities of<br>Hippodamos|

173

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~175~~|~~C3.4I5~~<br>Smart cities|~~Target~~|~~Installation of~~<br>smart sensors in<br>service as part of<br>the smart cities<br>initiative|
|177|C3.4I6<br>Regeneration and Revitalisation of Nicosia Inner<br>City|Target|Rooms renovated<br>and converted to<br>student dorms|
|198|C3.5R4<br>New legal framework and system of exchange of<br>data and credit bureaus|Milestone|Upgraded digital<br>system of<br>exchange of data<br>and credit bureaus|
|200|C3.5R5<br>Action plan for the development of a liability<br>monitoring register|Milestone|Action plan for the<br>development of a<br>liability<br>monitoring<br>register|
|210<br>|C3.5R10<br>Addressing Aggressive Tax Planning<br>|Milestone<br>|Entry into force of<br>the law to tackle<br>aggressive tax<br>planning via<br>payments to low<br>tax jurisdictions<br>|
|~~215~~<br>|~~C4.1R1~~<br>Empower the National Regulatory Authority<br>(OCECPR)<br>|~~Milestone~~<br>|~~The web portal on~~<br>broadband and<br>infrastructure<br>mapping is<br>operational and<br>accessible to the<br>target audience<br>|
|~~218~~|~~C4.1I1~~<br>Expansion of Very High Capacity Networks in<br>underserved areas|~~Target~~|~~Expansion of very~~<br>high capacity<br>networks’<br>deployment in<br>underserved areas|
|222|C4.1I3<br>Submarine link to Greece|Milestone|Signature of the<br>contract for the<br>design,<br>construction and<br>operation of the<br>submarine cables|
|237|C4.2I2<br>Digitalisation of the Cyprus Ports Authority|Target|Advancement of<br>the digital upgrade<br>of the Cyprus<br>Ports Authority|
|239|C5.1R1<br>Addressing skills mismatch between education<br>and labour market (Secondary and Higher<br>Education)|Milestone|Implementation of<br>key measures from<br>the National<br>Action Plan|

174

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~244~~|~~C5.1R3~~<br>Extension of free compulsory pre-primary<br>education from the age of four|~~Target~~|~~Children~~<br>benefitting from<br>tuition fees<br>support|
|247|C5.1R4<br>Digital transformation of school units with the aim<br>of enhancing digital skills and skills related to<br>STEM education|Target|Curriculum<br>transformation and<br>production of<br>educational<br>material for digital<br>skills and STEM<br>methodology|
|253|C5.1I2<br>Skilling, Reskilling and Upskilling|Target|Completion of<br>trainings for at<br>least 11 500<br>participants|
|258|C5.2I1<br>Improving the effectiveness of the Department of<br>Labour and Public Employment Services and<br>reinforcing support for young people|Target|Implementation of<br>completed, fully<br>operational<br>platforms|
|261<br>|C5.2I2<br>Establishment of multifunctional centres and<br>childcare centres<br>|Milestone<br>|Adoption of a<br>national strategy<br>on early childhood<br>education and care<br>(ECEC) and an<br>accompanying<br>action plan by the<br>Council of<br>Ministers<br>|
|~~262~~<br>|~~C5.2I2~~<br>Establishment of multifunctional centres and<br>childcare centres<br>|~~Target~~<br>|~~Grant awarded to~~<br>at least ten local<br>authorities/ Non-<br>Governmental<br>Organisations for<br>establishing or<br>enhancing<br>Multifunctional<br>Centres or Child<br>Centres<br>|
|~~264~~<br>|~~C5.2I3~~<br>Establishment of Home structures for children,<br>adolescent with conduct disorders and persons<br>with disabilities and people in need of long term<br>care (LTC)<br>|~~Target~~<br>|~~Buildings for the~~<br>needs of children<br>or persons with<br>disabilities and<br>support for homes<br>for children,<br>adolescents with<br>conduct disorders<br>and people in need<br>of long-term care<br>|
|~~267~~|~~C5.2I4~~<br>Child Centres in Municipalities|~~Target~~|~~Construction of at~~<br>least four child<br>centres|

175

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|||Instalment<br>Amount|EUR 149 425 287|

1.8. Eighth Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|6 <br>|C1.1I1<br>New facilities for the Cyprus Blood Establishment<br>and procurement of the latest technology attendant<br>equipment|Milestone|New blood<br>establishment<br>facilities including<br>all equipment are<br>fully operational<br>|
|14 <br>|C1.1I6<br>Deployment of generic cross border e-health<br>services in Cyprus <br>|Milestone <br>|Full operation of<br>cross-border<br>healthcare data<br>exchange <br>|
|~~66 ~~|~~C2.3R1~~<br>Water Resource Management Reform|~~Milestone~~|~~Adoption of an~~<br>action plan on<br>water resource<br>management|
|81|C2.3I6<br>Enhance water security for Nicosia and Larnaca<br>regions|Target|Completion of<br>construction of<br>three glass lined<br>steel reservoirs<br>and 1 concrete<br>water reservoir|
|94<br>|C3.1I2<br>Enhancement of isotopic database of traditional<br>Cypriot products<br>|Target<br>|Local traditional<br>foods/ drinks<br>connected to the<br>system<br>|
|~~111~~|~~C3.1R5~~<br>Establishment of a Coordinating Body between<br>central and local government|~~Milestone~~|~~Legislation on~~<br>coordination<br>between Central<br>and Local<br>Government|
|161<br>|C3.4R3<br>Introduce new framework for evaluation and<br>selection process for filling public service<br>vacancies and new regulations for the evaluation<br>of employees’ performance <br>|Milestone<br>|New framework<br>for performance<br>evaluation and<br>filling of<br>vacancies in the<br>public service.<br>|
|~~165~~|~~C3.4I2~~<br>Digitalisation of the law-making process|~~Milestone~~|~~Implementation of~~<br>the Cyprus<br>Legislation<br>Preparation<br>Platform|

176

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~184~~|~~C3.4R9~~<br>Digital transformation of courts|~~Milestone~~|~~Digital audio~~<br>recording in court<br>proceedings|
|202|C3.5R6 Reinforcing and strengthening the<br>insolvency framework|Milestone|Operation of all<br>digital systems<br>developed for the<br>Department of<br>Insolvency|
|221|C4.1I2<br>Enhance building cabling to be “Gigabit-ready”<br>and promote connectivity take-up|Target|Completion of<br>intra-building<br>Gigabit-ready<br>cabling|
|||Instalment<br>Amount|EUR 68 965 517|

1.9. Ninth Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|2 <br>|C1.1R1<br>National Centre for Clinical Evidence and Quality<br>Improvement <br>|Target <br>|Clinical protocols<br>prepared, audited<br>and peer reviewed <br>|
|~~4 ~~<br>|~~C1.1R2~~<br>Design of an Electronic platform for the<br>surveillance of Nosocomial Antibiotic<br>Consumption and Healthcare– Associated<br>Infections|~~Milestone~~|~~Electronic~~<br>platform including<br>monitoring system<br>is fully operational|
|8|C1.1I2<br>Cyprus Innovative Public Health information and<br>communications technology (ICT) System|Target|Sentinels entering<br>data in the<br>Influenza Sentinel<br>Surveillance<br>System module|
|10|C1.1I3<br>Purchase/replacement of medical equipment in<br>hospitals|Target|Health institutions<br>having benefitted<br>from the financial<br>support scheme|
|12|C1.1I4<br>Accreditation of public and private hospitals|Target|Health institutions<br>having benefitted<br>from the scheme<br>covering<br>accreditation<br>related costs|

177

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~15~~|~~C1.1I7~~<br>Public warning system for supporting emergency<br>operations through SMS|~~Milestone~~|~~Newly established~~<br>public warning<br>system and its<br>monitoring system<br>are fully<br>operational|
|26|C2.1I1<br>Promoting energy efficiency investments in<br>SMEs, municipalities, communities and the wider<br>public sector|Target|Entities (SMEs,<br>municipalities,<br>communities and<br>the wider public<br>sector) having<br>implemented<br>energy efficiency<br>interventions|
|37|C2.1I5<br>Energy Efficiency Upgrading of public buildings|Target|Completion of<br>installation of<br>photovoltaic<br>systems in water<br>pump stations and<br>fire stations|
|44|C2.1I8<br>Monitoring and reduction of GHG emissions in<br>agriculture|Target|Reduction of GHG<br>emissions from<br>agriculture|
|47<br>|C2.1I9<br>Forests fire protection<br>|Milestone<br>|Completion of<br>services<br>|
|~~53~~|~~C2.2R1~~<br>Establishment of an Intelligent Transport System<br>using Digital Twin technologies|~~Target~~|~~Delivery and~~<br>installation of a<br>total of 300<br>sensors|
|56<br>|C2.2R3<br>Progressively phase out the most polluting<br>vehicles, especially in polluted urban areas<br>|Milestone<br>|Implementation of<br>at least two<br>measures aiming<br>at the exclusion of<br>polluting vehicles<br>|
|~~61~~<br>|~~C2.2I2~~<br>Creation of electro-mobility infrastructure<br>|~~Target~~<br>|~~Installation of at~~<br>least 1 200<br>charging points,<br>due to the support<br>granted<br>|
|~~63~~|~~C2.2I3~~<br>Promote widespread use of Electric Vehicles<br>(EVs)|~~Target~~|~~Purchase of~~<br>electric vehicles,<br>electric bicycles<br>(at least 5 750),<br>due to the support<br>granted|
|65|C2.2I3<br>Promote widespread use of Electric Vehicles<br>(EVs)|Target|Scrapping of high<br>emission vehicles,<br>due to the support<br>granted|

178

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~70~~<br>|~~C2.3I2~~<br>Water Treatment Plants: upgrade for water quality<br>improvement<br>|~~Target~~<br>|~~Completion of~~<br>extension works<br>and automation<br>system at<br>Asprokremmos<br>Water Treatment<br>Plant<br>|
|~~79~~<br>|~~C2.3I5~~<br>Anti-flood and water collection measures<br>|~~Milestone~~<br>|~~Completion of~~<br>construction<br>works for the<br>flood channel in<br>Livadia<br>|
|~~108~~<br>|~~C3.1I10~~<br>Enrichment of the tourism product in rural,<br>mountainous and remote areas<br>|~~Target~~<br>|~~Grants to~~<br>enterprises and<br>local community<br>boards to promote<br>micro and small<br>businesses in the<br>creative and<br>manufacturing<br>sectors, such as<br>artists, handcrafts<br>and traditional<br>products<br>|
|~~113~~|~~C3.1I12~~<br>Waste management towards circular economy|~~Target~~|~~Start of operation~~<br>of  reuse and<br>repair centres|
|114|C3.1I12<br>Waste management towards circular economy|Target|Completion of set<br>up, installation<br>and start of<br>operation of<br>composting<br>systems|
|115|C3.1I12<br>Waste management towards circular economy|Target|Completion of<br>installation and<br>start of operation<br>of the green kiosks|
|126|C3.2I1<br>Set up and operate a central Knowledge Transfer<br>Office (KTO)|Target|Case files closed<br>attesting provision<br>of relevant<br>knowledge<br>transfer services|
|137<br>|C3.3R2<br>Enhancing Fast-Track Business Activation<br>Mechanism<br>|Target<br>|Assessments of<br>applications for<br>investment<br>through the<br>platform<br>|
|~~139~~|~~C3.3R3~~<br>Modernisation of the Companies Law|~~Milestone~~|~~Entry into force of~~<br>the Companies<br>Law|

179

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~ 141~~|~~C3.3R4~~<br>Design and establish a National Promotional<br>Agency|~~Milestone~~|~~Start of operations~~<br>of Cyprus<br>National<br>Promotional<br>Agency|
|146<br>|C3.3I3<br>Consulting services for SMEs<br>|Target<br>|SMEs receiving<br>support by<br>accredited<br>consultants<br>|
|~~157~~|~~C3.4R1~~<br>Enhance the administrative capacity and improve<br>the functioning of public administration for better<br>policy making and implementation|~~Milestone~~|~~Implementation of~~<br>the Action Plan on<br>the efficient<br>management of<br>human resource<br>issues in the<br>national public<br>administration|
|162<br>|C3.4R4<br>Strengthen administrative capacity and<br>transparency through the professionalisation of<br>public procurement and further digitalisation of its<br>process<br>|Milestone<br>|New integrated e-<br>procurement<br>system<br>|
|~~166~~|~~C3.4I2~~<br>Digitalisation of the law-making process|~~Milestone~~|~~Digitalisation of~~<br>laws & regulations<br>in the new<br>platform|
|168<br>|C3.4I3<br>Economic Policy Modelling Hub<br>|Target<br>|Number of<br>developed impact<br>assessment models<br>and data analysis<br>tools<br>|
|~~172~~|~~C3.4R7~~<br>Urban land consolidation|~~Target~~|~~Number of master~~<br>plans for urban<br>planning in<br>residential zones|
|185|C3.4I7<br>Training of judges|Target|Training of judges|
|213|C3.5I2<br>Modernisation of Customs and Electronic<br>Payment System|Target|Putting into<br>operation of the<br>information<br>systems envisaged<br>under the UCC|
|219|C4.1I1<br>Expansion of Very High Capacity Networks in<br>underserved areas|Target|Completion of<br>very high capacity<br>networks’<br>deployment in<br>underserved areas|
|228|C4.2R2<br>Definition and implementation of a new cloud<br>policy with regard to government IT systems and<br>services|Target|Data centres<br>operational and<br>offering cloud<br>services|

180

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~230~~<br>|~~C4.2R3~~<br>Police Procedures digitalisation on Digipol<br>|~~Target~~<br>|~~Citizens use~~<br>Digipol<br>|
|~~235~~<br>|~~C4.2I1~~<br>Digitalisation in various Central Government<br>Ministries - Services<br>|~~Target~~<br>|~~Finalisation of the~~<br>digital upgrade of<br>a number of<br>central<br>government<br>ministries and<br>departments<br>|
|~~238~~|~~C4.2I2~~<br>Digitalisation of the Cyprus Ports Authority|~~Target~~|~~Finalisation of the~~<br>digital upgrade of<br>the Cyprus Ports<br>Authority|
|240|C5.1R1<br>Addressing skills mismatch between education<br>and labour market (Secondary and Higher<br>Education)|Target|Secondary<br>education teaching<br>staff trained|
|242<br>|C5.1R2<br>A new teacher and school evaluation system<br>|Target<br>|Training of<br>teaching staff<br>|
|~~250~~|~~C5.1R5~~<br>E-skills Action Plan– Implementation of specific<br>actions|~~Milestone~~|~~Implementation of~~<br>key measures from<br>the e-Skills Action<br>Plan|
|254|C5.1I2<br>Skilling, Reskilling and Upskilling|Target|Completion of<br>trainings for at<br>least 25 600<br>participants|
|256|C5.2R2<br>Flexible Work Arrangements in the Form of<br>Telework|Target|Grant awarded for<br>at least 400<br>persons in<br>telework|
|259|C5.2I1<br>Improving the effectiveness of the Department of<br>Labour  and Public Employment Services and<br>reinforcing support for young people|Target|Grant awarded to<br>employers for<br>hiring at least 600<br>young people not<br>in employment or<br>in education or<br>training (NEETs)|
|269|C5.2I5<br>Construction of Two Model Special Education<br>Schools|Milestone|Completion of<br>construction of<br>Apostolos Loukas<br>& Red Cross<br>Special needs<br>school|
|||Instalment<br>Amount|EUR 68 965 517|

181

1.10. Tenth Instalment (non-repayable support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|20 <br>|C2.1R1<br>Green Taxation <br>|Milestone <br>|Impact assessment<br>report measuring<br>the reform’s effect<br>on the<br>environment and<br>the economy <br>|
|~~29 ~~<br>|~~C2.1I2~~<br>Promoting renewables and individual energy<br>efficiency measures in dwellings and tackling<br>energy poverty in households with people with<br>disabilities <br>|~~Target~~ <br>|~~Dwellings and~~<br>households with<br>people with<br>disabilities having<br>improved their<br>energy<br>performance <br>|
|~~32 ~~|~~C2.1I3~~<br>Encouraging the use of renewables and energy<br>savings by local/wider public authorities as well<br>as NGOs and facilitating the transition of local<br>communities towards climate mitigation &<br>adaptation|~~Target~~|~~Investments~~<br>undertaken by<br>local authorities or<br>NGOs that have<br>improved their<br>energy<br>performance, and<br>resilience to<br>climate change|
|34<br>|C2.1I4<br>Reduction of CO2 emissions in industries,<br>businesses and organisations<br>|Target<br>|Emissions reduced<br>further<br>|
|~~42~~<br>|~~C2.1I7~~<br>Mass installation and operation by the Distribution<br>System Operator (DSO) of Smart Metering<br>Infrastructure (Advanced Metering Infrastructure)<br>|~~Target~~<br>|~~Delivery and~~<br>installation of<br>smart meters<br>|
|~~58~~|~~C2.2I1~~<br>Implementation of Sustainable Urban Mobility<br>Projects (SUMP) and accessibility enhancing<br>measures|~~Target~~|~~Completion of~~<br>construction work<br>for at least 62km<br>of sustainable<br>transport routes|
|59|C2.2I1<br>Implementation of Sustainable Urban Mobility<br>Projects (SUMP) and accessibility enhancing<br>measures|Target|Completion of<br>construction work<br>for at least 645<br>ancillary<br>installations<br>related to<br>sustainable<br>transport|
|68|C2.3I1<br>Choirokitia‑ Famagusta Conveyor Replacement|Target|Installation of new<br>pipeline with total<br>length of 20km|

182

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~73~~<br>|~~C2.3I3~~<br>Integrated Monitoring and Control Management<br>System for the Water Development Department’s<br>infrastructure<br>|~~Milestone~~<br>|~~Completion of a~~<br>fully functional<br>Integrated<br>Monitoring and<br>Control Water<br>Management<br>System<br>|
|~~76~~|~~C2.3I4~~<br>Smart Water and Sewerage Networks<br>Management|~~Target~~|~~Installation and~~<br>operation of at<br>least 100 000<br>smart meters|
|83|C2.3I7<br>Eastern Nicosia infrastructure for the re-use of<br>treated wastewater|Milestone|Completion and<br>delivery of a fully<br>operational<br>wastewater<br>treatment<br>infrastructure|
|90<br>|C3.1R3<br>Genetic improvement of the Cyprus sheep and<br>goat population<br>|Target<br>|Adoption of<br>advanced<br>recording and<br>genomic<br>evaluation<br>processes, and<br>selection of the<br>best performing<br>animals<br>|
|~~92~~<br>|~~C3.1I1~~<br>Marine aquaculture construction<br>|~~Milestone~~<br>|~~Operational~~<br>collaborative<br>marine<br>aquaculture<br>Infrastructure<br>|
|~~99~~|~~C3.1I6~~<br>Scheme for modernisation and digitalisation of<br>enterprises engaged in manufacturing and trading<br>of agricultural products|~~Target~~|~~Grants to SMEs~~<br>engaged with trade<br>and production of<br>agricultural<br>products|
|102<br>|C3.1I7<br>Scheme for the enhancement of large enterprises<br>competitiveness in the manufacturing sector<br>|Target<br>|Grants to large<br>enterprises in the<br>Manufacturing<br>Sector<br>|
|~~104~~<br>|~~C3.1I8~~<br>Enhancing the added value of the tourism sector<br>with emphasis on the country side, mountainous<br>and remote areas<br>|~~Target~~<br>|~~Grant to hotels to~~<br>promote the<br>tourism sector<br>|
|~~106~~|~~C3.1I9~~<br>Promotion of circular economy in hotel<br>establishments|~~Target~~|~~Coaching scheme~~<br>for circular<br>economy|
|110|C3.1R4<br>Enhancement of circular economy in the Industry|Target|Aid for SMEs<br>which are moving<br>into a circular<br>operating model|

183

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~129~~|~~C3.2I2~~<br>Innovation funding programmes for start-ups,<br>innovative companies and SMEs|~~Target~~|~~Organisations~~<br>supported to carry<br>out R&I related<br>activities|
|131<br>|C3.2I3<br>R&I funding program on green transition<br>|Target<br>|Organisations<br>supported by<br>grants on green<br>transition R&I<br>activities<br>|
|~~133~~|~~C3.2I4~~<br>Funding organisations performing R&D activities<br>on dual technologies|~~Target~~|~~Funding for the~~<br>development of<br>classified<br>Laboratories|
|148<br>|C3.3I4<br>Scheme for the digital upgrade of enterprises<br>|Target<br>|SMEs supported<br>following<br>submission of<br>payment<br>applications.<br>|
|~~150~~|~~C3.3I5~~<br>Support extroversion and openness of Cyprus<br>firms to international trade|~~Target~~|~~Enterprises~~<br>supported for trade<br>extroversion<br>activities|
|152|C3.3I6<br>State funded equity fund|Target|Investees<br>supported through<br>the Fund|
|164|C3.4I1<br>Rationalisation of the shift system through the<br>implementation of a Roster Planning System|Milestone|Implementation of<br>a new Roster<br>Planning System<br>in public sector<br>organisations|
|176<br>|C3.4I5<br>Smart cities<br>|Target<br>|Development of<br>mobile<br>applications<br>developed as part<br>of the smart cities<br>initiative<br>|
|~~178~~|~~C3.4I6~~<br>Regeneration and Revitalisation of Nicosia Inner<br>City|~~Target~~|~~Rooms renovated~~<br>and converted to<br>student dorms|
|179|C3.4I6<br>Regeneration and Revitalisation of Nicosia Inner<br>City|Milestone|Renovation of<br>Faneromeni<br>School|
|182|C3.4R8<br>Efficiency of Justice|Target|Further reducing<br>the backlog of<br>cases and appeals|

184

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~211~~<br>|~~C3.5R10~~<br>Addressing Aggressive Tax Planning<br>|~~Milestone~~<br>|~~Entry into force of~~<br>legislative changes<br>addressing the<br>findings of an<br>independent<br>evaluation on the<br>effectiveness of<br>measures related<br>to aggressive tax<br>planning<br>|
|~~223~~|~~C4.1I3~~<br>Submarine link to Greece|~~Target~~|~~Completion of the~~<br>construction of the<br>submarine internet<br>cables|
|226|C4.2R1<br>Digital Services Factory|Target|Delivery online of<br>at least 150<br>previously non-<br>digital services to<br>the public through<br>the Digital<br>Services Factory|
|245|C5.1R3<br>Extension of free compulsory pre-primary<br>education from the age of four|Target|Children<br>benefitting from<br>tuition fee support|
|248|C5.1R4<br>Digital transformation of school units with the aim<br>of enhancing digital skills and skills related to<br>STEM education|Target|Teachers<br>benefitting from<br>In-Service<br>Training &<br>Professional<br>Development|
|252|C5.1I1<br>Construction of two Model Technical Schools|Milestone|Completion of<br>construction of<br>two Technical<br>Schools|
|260<br>|C5.2I1<br>Improving the effectiveness of the Department of<br>Labour and Public Employment Services and<br>reinforcing support for young people<br>|Target<br>|Coaching and<br>career guidance<br>for young people<br>not in employment<br>or in education or<br>training (NEETs)<br>|
|~~263~~|~~C5.2I2~~<br>Establishment of multifunctional centres and<br>childcare centres|~~Target~~|~~Grant awarded to~~<br>at least 27 local<br>authorities/ Non-<br>Governmental<br>Organisations for<br>establishing or<br>enhancing<br>Multifunctional<br>Centres or Child<br>Centres|

185

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~265~~|~~C5.2I3~~<br>Establishment of Home structures for children,<br>adolescent with conduct disorders and persons<br>with disabilities and people in need of long term<br>care (LTC)|~~Target~~|~~Buildings for the~~<br>needs of children<br>or persons with<br>disabilities and<br>support for homes<br>for children,<br>adolescents with<br>conduct disorders<br>and people in need<br>of long-term care|
|||Instalment<br>Amount|EUR 51 923 060|

186

**2.** **Loan**

The instalments referred to in Article 3(2) shall be organised in the following

manner:

2.1. First Instalment (loan support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|16|C1.1R3<br>Gradually shifting the healthcare provision and<br>reimbursement framework towards value-based<br>models.|Milestone|Value-based<br>reimbursement to<br>be reflected for<br>primary and in-<br>patient care|
|49<br>|C2.1I11<br>Ending energy isolation - Project of Common<br>Interest "EuroAsia Interconnector"<br>|Milestone<br>|Start of the<br>construction<br>works of the<br>HVDC Converter<br>Station in Kofinou<br>and the onshore<br>infrastructure in<br>Cyprus<br>|
|~~153~~ <br>|~~C3.3I1~~<br>Integrated Information system for the Registrar of<br>Companies and Official Receiver <br>|~~Milestone~~ <br>|~~System hardware~~<br>and software<br>installation and<br>networking<br>completed <br>|
|~~270~~|~~C5.2R1~~<br>Reform of the Social Insurance System and<br>Restructuring of the Social Insurance Services|~~Milestone~~|~~Entry into force of~~<br>the revised Social<br>Insurance Law|
|||Instalment<br>Amount|EUR 57 471 264|

2.2. Second Instalment (loan support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|17|C1.1I5<br>Enhancement, modernisation and upgrade of<br>Cyprus State Hospitals|Target|Enhanced,<br>constructed and/or<br>upgraded State<br>hospitals|
|116|C3.1I11<br>Improvement and extension of the Cyprus Green<br>Points Network and creation of a network of<br>Collection Points and Recycling Corners|Target|Completion of<br>construction,<br>expansion and<br>start of operation<br>of four Green<br>Points|

187

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~118 ~~|~~C3.1I13~~<br>Establishment of the Orounda Livestock Waste<br>and Animal-By-Product Management Facilities|~~Milestone~~|~~Construction of~~<br>facilities for<br>wastewater<br>treatment and co-<br>composting|
|||Instalment<br>Amount|EUR 57 471 264|

2.3. Third Instalment (loan support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|50|C2.1I11<br>Ending energy isolation - Project of Common<br>Interest "EuroAsia Interconnector"|Milestone|Completion of<br>construction of<br>converter station|
|||Instalment<br>Amount|EUR 40 229 885|

2.4. Fourth Instalment (loan support):

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~18~~ <br>|~~C1.1I5~~<br>Enhancement, modernisation and upgrade of<br>Cyprus State Hospitals <br>|~~Target~~ <br>|~~Enhanced,~~<br>constructed and/or<br>upgraded State<br>hospitals <br>|
|~~51~~<br>|~~C2.1I11~~<br>Ending energy isolation - Project of Common<br>Interest "EuroAsia Interconnector"|~~Milestone~~|~~Completed and~~<br>fully operational<br>facility of the<br>electricity<br>interconnection<br>between Cyprus-<br>Crete (Greece)|
|117 <br>|C3.1I11<br>Improvement and extension of the Cyprus Green<br>Points Network and creation of a network of<br>Collection Points and Recycling Corners <br>|Target <br>|Completion of<br>construction,<br>expansion and<br>operation of 14<br>Green Points <br>|
|~~119 ~~|~~C3.1I13~~<br>Establishment of the Orounda Livestock Waste<br>and Animal-By-Product Management Facilities|~~Milestone~~|~~Completion and~~<br>start of operation<br>of the Anaerobic<br>Digestion facilities|
|154|C3.3I1<br>Integrated Information system for the Registrar of<br>Companies and Official Receiver|Target|Training of<br>personnel|

188

|Sequential<br>Number|Related Measure (Reform or Investment)|Milestone /<br>Target|Name|
|---|---|---|---|
|~~190~~|~~C3.4I9~~<br>Aid Scheme for the private and public sector for<br>certification with ISO 37001 (Anti<br>Bribery)|~~Target~~|~~ISO 37001 anti-~~<br>bribery<br>management<br>systems|
|271|C5.2R1<br>Reform of the Social Insurance System and<br>Restructuring of the Social Insurance Services|Milestone|Completion of the<br>new integrated<br>digital Social<br>Security System|
|||Instalment<br>Amount|EUR 45 147 587|

189

**SECTION** **3:** **ADDITIONAL** **ARRANGEMENTS**

**1.** **Arrangements for monitoring and implementation of the recovery and**
**resilience plan**

The monitoring and implementation of the recovery and resilience plan of Cyprus
has been set out in the Council of Ministers decision of 14 May 2021, which
approved the plan. They shall take place in accordance with the following
arrangements:

    - The Monitoring Committee, chaired by the Director General of the Directorate

General for European Programmes, Coordination and Development and attended
by the Directors-General of Ministries and Deputy Ministries involved in the
plan, shall be responsible for centrally monitoring progress in implementation,
resolving issues and responding to risks at the highest technical level. It shall
convene at least before each submission to the Commission of requests for
payment and progress reports provided for under Regulation (EU) 2021/241. It
may rely on reporting and other support from the Coordinating Authority.

    - The Coordinating Authority, which is the Directorate for Recovery and

Resilience of the Directorate General for European Programmes, Coordination
and Development, shall be responsible for the monitoring and implementation of
the recovery and resilience plan at operational level. Specifically, the
Coordinating Authority is responsible for monitoring, verifying and certifying the
achievement of the milestones and targets of measures of the plan and ensuring
the timely submission of all information described in Article 22(2), point (d) of
Regulation (EU) 2021/241. In performing its monitoring functions, the
Coordinating Authority is assisted by two specialised Monitoring Bodies
designated for specific measures of the plan.

    - The National Control and Audit Coordinator for the implementation of the plan,

which is the Verifications and Certification Directorate of the Treasury of the
Republic of Cyprus, shall be responsible for supporting the Coordinating
Authority in overseeing controls by all stakeholders, including Implementing
Bodies, in accordance with the management and control system of the plan and
the national and EU legislation. In that respect, it shall also monitor the status of
the findings of ex post audits, acting as the intermediate body between the
Coordinating Authority and the Internal Audit Service of the Republic of Cyprus
and the Audit Office of the Republic of Cyprus (together, “the audit bodies”).
The National Control and Audit Coordinator shall not be involved  in the

planning and execution of the audits, which is within the sole responsibility of
the audit bodies. It shall manage and process all information described in Article
22(2), point (d) of Regulation (EU) 2021/241, collected by the Implementing
Bodies. In this respect, it has the responsibility to oversee the treatment of serious
irregularities, meaning fraud, corruption and conflicts of interests, and ensure that
double funding is avoided through controls of the information submitted by the
Implementing Bodies.

    - The Implementing Bodies shall have the first line responsibility to prevent,

detect, report and correct conflicts of interest, corruption and fraud, and avoid
double funding. To that end, they shall undertake first level controls and
verifications of the physical and financial aspect of the measures under their
responsibility and regularly update the Coordinating Authority and the
specialised Monitoring Bodies, where relevant, regarding progress in achieving

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the milestones and targets of the measures under their responsibility and by
providing all the necessary supporting documentation.

    - The Internal Audit Service of the Republic of Cyprus is responsible for

conducting ex post internal audits in any central government body including the
audit of the achievement of milestones and targets of the plan, through an
appropriate sampling method. The Audit Office of the Republic of Cyprus is
responsible for conducting financial, performance and compliance ex post (and in
some cases real time) external audits for projects implemented under the national
budget through an appropriate sampling method which complies with the
International Organisation of Supreme Audit Institutions (INTOSAI) standards. It
shall be ensured that the selected sample necessarily includes a sufficient number
of measures implemented through the the recovery and resilience plan.

    - The Coordinating Authority shall be the body drawing up the requests for

payment to the European Commission. The Coordinating Authority shall be
supported by the National Control and Audit Coordinator in retrieving the results
of audit procedures undertaken by the audit bodies (including the Internal Audit
Service and the Audit Office), as well as all cases of serious irregularities,
including cases of fraud or suspicion of fraud, corruption and conflicts of interest,
that shall feed into the summary of audits, which will accompany payment
applications.

**2.** **Arrangements for providing full access by the Commission to the underlying**
**data**

A dedicated Monitoring Information System (MIS) shall be used by the Directorate
for Recovery and Resilience of the Directorate General for European Programmes,
Coordination and Development for the implementation of the plan. Its core
functionalities, or a contingent repository system with the required functionalities,
shall be in place as attested by an audit report by 31 March 2022. In terms of
required functionalities, a repository system shall record and store the relevant data
related to the implementation of the recovery and resilience plan, in particular on the
achievement of milestones and targets, data on final recipients, contractors,
subcontractors and beneficial owners in line with Article 22(2), point (d), sections (i)
to (iii) of Regulation (EU) 2021/241, by the first payment request.

In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of
the relevant agreed milestones and targets in Section 1 of this Annex, Cyprus shall
submit to the Commission a duly justified request for payment of the financial
contribution and of the loan. Cyprus shall ensure that, upon request, the Commission
has full access to the underlying relevant data that supports the due justification of
the request for payment, both for the assessment of the request for payment in
accordance with Article 24(3) of Regulation (EU) 2021/241 and for audit and control

purposes.

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