Ettepanek - COM(2026) 312, SWD(2026) 169

EN EN

EUROPEAN COMMISSION

Brussels, 18.6.2026

COM(2026) 312 final

2026/0170 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 28 July 2021 on the approval of the assessment

of the recovery and resilience plan for Cyprus

{SWD(2026) 169 final}

EN 1 EN

2026/0170 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 28 July 2021 on the approval of the assessment

of the recovery and resilience plan for Cyprus

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of

12 February 2021 establishing the Recovery and Resilience Facility1, and in particular Article

20(1) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) Following the submission of the national recovery and resilience plan (‘RRP’) by

Cyprus on 17 May 2021, the Commission proposed its positive assessment to the

Council. On 28 July 2021, the Council approved the positive assessment by means of

an implementing decision2 (‘the Council Implementing Decision of 28 July 2021’).

The Council Implementing Decision of 28 July 2021 was amended by the Council

Implementing Decisions of 8 December 20233, 16 July 20244, 21 January 20255,

20 June 20256 and 12 December 20257.

(2) On 29 May 2026, Cyprus made a reasoned request to the Commission to make a

proposal to amend the Council Implementing Decision of 28 July 2021 in accordance

with Article 21(1) of Regulation (EU) 2021/241 on the grounds that the RRP is

partially no longer achievable because of objective circumstances. On that basis,

Cyprus has submitted an amended RRP.

Amendments based on Article 21 of Regulation (EU) 2021/241

(3) The amendments to the RRP submitted by Cyprus because of objective circumstances

concern 54 measures.

(4) Cyprus has explained that five measures are partially no longer achievable because of

lack of demand. This concerns C2.1I9 fire protection, C2.2I1 Sustainable Urban

1 OJ L 57, 18.2.2021, p. 17, ELI: https://eur-lex.europa.eu/eli/reg/2021/241/oj 2 See documents: ST 10686/21 INIT, ST 10686/21 ADD 1. 3 See documents: ST 15571/23 INIT, ST 15571/23 ADD 1, ST 15571/23 ADD 1 COR 1. 4 See documents: ST 11806/24 INIT, ST 11806/24 ADD 1. 5 See documents: ST 17052/24 INIT, ST17052/24 ADD 1. 6 See documents: ST 9585/25 INIT, ST 9585/25 ADD 1. 7 See documents: ST 15743/25 INIT, ST 15743/25 ADD1.

EN 2 EN

Mobility Projects (SUMP) and accessibility-enhancing measures, C3.4I6a

Regeneration and Revitalisation of Nicosia Inner City, C5.1R4 Digital transformation

of school units with the aim of supporting digital skills and skills related to STEM

education, and C6.1I6 Scaled-up measure: Thematic research and innovation funding

programme on green transition. On this basis, Cyprus has requested that those

measures be amended. The Council Implementing Decision of 28 July 2021 should be

amended accordingly.

(5) Cyprus has explained that three measures are partially no longer achievable because of

unexpected delays in the implementation. This concerns C1.1I5 Construction works

and new equipment in Cyprus State Hospitals, C3.4I5 Smart cities and C5.1R2 A new

teacher and school evaluation system. On this basis, Cyprus has requested that those

measures be amended. The Council Implementing Decision of 28 July 2021 should be

amended accordingly.

(6) Cyprus has explained that five measures are partially no longer achievable because of

technical issues in the implementation. This concerns C1.1I7 Public warning system

for emergency operations, C3.4R9 Digital transformation of courts, C3.5R4 Digital

system for the exchange of data and the provision of credit scoring services, C3.5R9

Digitalising tax collection and C4.2I2 Digitalisation of the Cyprus Ports Authority. On

this basis, Cyprus has requested that those measures be amended. The Council

Implementing Decision of 28 July 2021 should be amended accordingly.

(7) Cyprus has explained that one measure is partially no longer achievable because of

force majeure. This concerns C3.1R3 Genetic improvement of the Cyprus sheep and

goat population. On this basis, Cyprus has requested that that measure be amended.

The Council Implementing Decision of 28 July 2021 should be amended accordingly.

(8) Cyprus has explained that one measure has been amended to implement a manifestly

better alternative in order to achieve its original ambition. This concerns C2.1R1

Green taxation. On this basis, Cyprus has requested to amend that measure. As those

circumstances justify an amendment of the measures, the Council Implementing

Decision of 28 July 2021 should be amended accordingly.

(9) Cyprus has explained that 36 measures have been amended to implement better

alternatives that allow the administrative burden to be reduced and simplify the

Council Implementing Decision, while still achieving the objectives of those

measures. This concerns C1.1R1 National Centre for Clinical Evidence and Quality

Improvement; C2.1I1 Energy-saving investments in SMEs and non-profit

organisations; C2.2I2 Creation of electro-mobility infrastructure; C2.3I2 Water

Treatment Plants; C2.3I4 Smart Water and Sewerage Networks Management; C2.3I5

Anti-flood and water collection measures; C2.3I6 Water security projects; C3.1R1

Move agricultural practices from the 20th century to the 21st century by investing in a

national centre for excellence in agri-tech; C3.1I6 Scheme for supporting the

production of enterprises in the agricultural sector; C3.1I8 Added value of tourism;

C3.1I9 Circular economy in hotels; C3.1I10 Enrichment of tourism; C3.1R4 Circular

economy; C3.1I11 Extension of the Cyprus Green Points Network; C3.2R1 National

Research and Innovation Policy; C3.3R2 Supporting Fast-Track Business Activation

Mechanism; C3.3R4 Incorporation of a National Promotional Agency; C3.4R1

Support the functioning of public administration; C3.4R4 Digitalisation of public

procurement; C3.4I3 Economic Policy Modelling Hub; C3.4R7 Urban land

consolidation; C3.4I4 E-system for issuing building permits; C3.5R8 Enhancing

supervision of Insurance and Pension Funds; C3.5R10 Addressing Aggressive Tax

EN 3 EN

Planning; C3.5I2 Modernisation of Customs and Electronic Payment System; C4.2R1

Digital Services Factory (DSF); C4.2R3 Police procedures digitalisation (Digipol);

C4.2I1 Digitalisation of central government ministries/services; C5.1R3 Gradual

extension of free compulsory pre-primary education from the age of four; C5.1R5 E-

skills Action Plan – Delivery of specific actions; C5.2R2 Flexible work arrangements

in the form of telework; C5.2I2 Establishment of Multifunctional Centres and

Childcare Centres; C5.2I3 Establishment of home structures for people in need of

long-term care; C5.2I4 Child centres in municipalities; C5.2I5 Construction of two

model special education schools and C5.2R1 Reform of the Social Insurance System

and Restructuring of the Social Insurance Services. On this basis, Cyprus has

requested that those measures be amended. The Council Implementing Decision of

28 July 2021 should be amended accordingly.

(10) Following the decrease in the level of implementation of measures in accordance with

Article 21 of Regulation (EU) 2021/241, Cyprus has requested to use the resources

freed up by the decrease in the level of their implementation to increase the level of

implementation of three measures. This concerns C2.1I2 Renewables and individual

energy efficiency measures in dwellings and tackling energy poverty in households

with vulnerable electricity consumers; C2.2I3 Advance the use of Electric Vehicles

(EVs) and C6.1I1 Scaled-up measure: renewables and individual energy efficiency

measures in dwellings. On this basis, Cyprus has requested that the level of

implementation of four measures be increased. The Council Implementing Decision of

28 July 2021 should be amended accordingly.

Distribution of milestones and targets

(11) The distribution of milestones and targets in instalments should be amended to take

into account the amendments to the RRP and the indicative timeline presented by

Cyprus.

Commission’s assessment

(12) The Commission has assessed the amended RRP against the assessment criteria laid

down in Article 19(3) of Regulation (EU) 2021/241.

Addressing all or a significant subset of challenges identified in country-specific

recommendations

(13) In accordance with Article 19(3), point (b), of, and criterion 2.2 of Annex V to,

Regulation (EU) 2021/241, the amended RRP is expected to contribute to effectively

addressing all or a significant subset of challenges (rating A) identified in the relevant

country-specific recommendations addressed to Cyprus, including fiscal aspects

thereof, or challenges identified in other relevant documents officially adopted by the

Commission in the context of the European Semester.

Contribution to the REPowerEU objectives

(14) In accordance with Article 19(3), point (da), of, and criterion 2.12 of Annex V to,

Regulation (EU) 2021/241, the REPowerEU chapter is expected to effectively

contribute to a large extent (rating A) to energy security, the diversification of the

Union’s energy supply, an increase in the uptake of renewables and in energy

efficiency, an increase of energy storage capacities or the necessary reduction of

dependence on fossil fuels before 2030.

(15) The overall ambition of the RePowerEU chapter is maintained. While one measure has

been slightly downscaled due to lack of demand, another measure promoting

EN 4 EN

renewables has been upscaled, therefore the chapter effectively contributes to a large

extent to energy security, the diversification of the Union’s energy supply, an

increased uptake of renewables and energy efficiency, and the reduction of

dependence on fossil fuels before 2030. Therefore, the amended plan effectively

contributes to the objectives of Article 19(3), point (da).

Contribution to the green transition including biodiversity

(16) In accordance with Article 19(3), point (e), of, and criterion 2.5 of Annex V to,

Regulation (EU) 2021/241, the amended RRP contains measures that contribute to a

large extent (rating A) to the green transition, including biodiversity, or to addressing

the challenges resulting therefrom. The measures supporting climate objectives

account for an amount which represents 43.30% of the amended RRP’s total allocation

and 94.18% of the total estimated costs of measures in the REPowerEU chapter

calculated in accordance with the methodology set out in Annex VI to Regulation

(EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the

amended RRP is consistent with the information included in the National Energy and

Climate Plan 2021-2030.

(17) In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to

Regulation (EU) 2021/241, the modified RRP contains measures that contribute to a

large extent to the green transition, including biodiversity or to addressing the

challenges resulting from it, as well as to the achievement of the Union 2030 climate

targets while complying with the objective of EU climate neutrality by 2050. The

positive assessment of the contribution to the green transition provided in the Council

Implementing Decision of 20 July 2021 remains valid. While one measure on green

R&I projects has been slightly downscaled, one measure on EVs has been scaled up,

resulting in an increase of 2.79%, the measures amended do not impact the overall

ambition of the plan regarding the green transition.

Contribution to the digital transition

(18) In accordance with Article 19(3), point (f), of, and criterion 2.6 of Annex V to,

Regulation (EU) 2021/241, the amended RRP contains measures that contribute to a

large extent (rating A) to the digital transition or to addressing the challenges resulting

from it. The measures supporting digital objectives account for an amount which

represents 29.15% of the amended RRP’s total allocation calculated in accordance

with the methodology set out in Annex VII to that Regulation. The amendments to the

Cyprus’s RRP entail a net decrease in the overall contribution to the digital target of

the RRP by 2.93%. However, the measures amended do not impact the overall

ambition of the plan regarding the digital transition.

(19) In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to

Regulation (EU) 2021/241, the modified RRP contains measures that contribute to a

large extent to the digital transition or to addressing the challenges resulting from it.

The positive assessment of the contribution to the digital transition provided in the

Council Implementing Decision of 20 July 2021 remains valid.

Costing

(20) In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to

Regulation (EU) 2021/241, the justification provided in the amended RRP on the

amount of the estimated total cost of the RRP is to a medium extent (rating B)

reasonable and plausible, is in line with the principle of cost efficiency and is

commensurate to the expected national economic and social impact.

EN 5 EN

(21) According to the information provided, the assessment of the cost estimates for the

existing measure whose modifications entailed a new cost assessment show that most

of the costs are reasonable and plausible. The changes in the cost estimates were

justified, proportional to the revised targets and supported by detailed calculations and

evidence, and as such the reasonability and plausibility of these cost estimates were

not altered compared to the original RRP. Finally, the amount of the estimated total

cost of the RRP is in line with the principle of cost-efficiency and commensurate to

the expected national economic and social impact.

Any other assessment criteria

(22) The Commission considers that the amendments put forward by Cyprus do not affect

the positive assessment of the RRP set out in the Council Implementing Decision of

28 July 2021 on the approval of the assessment of the RRP for Cyprus regarding the

relevance, effectiveness, efficiency and coherence of the RRP against the assessment

criteria laid down in Article 19(3), points [(a), (b), (c), (d), (da), (db), (e), (f), (g), (h),

(i), (j) and (k).

Positive assessment

(23) Following the positive assessment by the Commission of the amended RRP, with the

finding that the RRP satisfactorily complies with the criteria for assessment set out in

Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that

Regulation, the reforms and investment projects necessary for the implementation of

the amended RRP, the relevant milestones, targets and indicators, and the amount

made available from the Union for the implementation of the amended RRP should be

set out.

Financial contribution

(24) The estimated total costs of Cyprus’s amended RRP is EUR 1 022 123 510. As the

amount of the estimated total cost of the amended RRP is higher than the updated

maximum financial contribution available for Cyprus, the financial contribution

determined in accordance with Article 4a of Regulation (EU) 2021/1755 of the

European Parliament and of the Council8, and with Article 20(4) and Article 21a(6) of

Regulation (EU) 2021/241 that is allocated for Cyprus’s amended RRP should be

equal to EUR 1 020 223 681. Therefore, the financial contribution made available to

Cyprus remains unchanged.

(25) The Council Implementing Decision of 28 July 2021 should therefore be amended

accordingly. For the sake of clarity, the Annex to the Council Implementing Decision

of 28 July 2021 should be replaced entirely.

(26) This Decision should be without prejudice to the outcome of any procedures relating

to the award of Union funds under any Union programme other than the Facility or to

procedures relating to distortions of the operation of the internal market that may be

undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override

the requirement for Member States to notify instances of potential State aid to the

Commission under Article 108 of the Treaty,

8 Regulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021

establishing the Brexit Adjustment Reserve (OJ L 357, 8.10.2021, p. 1,

ELI: http://data.europa.eu/eli/reg/2021/1755/oj).

EN 6 EN

HAS ADOPTED THIS DECISION:

Article 1

Approval of the assessment of the RRP

The assessment of the amended RRP for Cyprus on the basis of the criteria provided for in

Article 19(3) of Regulation (EU) 2021/241 is approved.

Article 2

Amendments

The Council Implementing Decision of 28 July 2021 on the approval of the assessment of the

recovery and resilience plan for Cyprus is amended as follows:

the Annex is replaced by the text set out in the Annex to this Decision.

Article 3

Addressee

This Decision is addressed to the Republic of Cyprus.

Done at Brussels,

For the Council

The President

EN EN

EUROPEAN COMMISSION

Brussels, 18.6.2026

COM(2026) 312 final

ANNEX

ANNEX

to the

Proposal for a COUNCIL IMPLEMENTING DECISION

amending the Implementing Decision of 28 July 2021 on the approval of the assessment

of the recovery and resilience plan for Cyprus

{SWD(2026) 169 final}

1

ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE

PLAN

A. COMPONENT 1.1: RESILIENT 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) stepping-up 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).

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

This measure consists in an IT system for clinical protocols in medical care.

Reform 2 (C1.1R2): Electronic platform for the surveillance of Nosocomial Antibiotic Consumption and

Healthcare-Associated Infections

The objective of this reform is to support the digital transition and resilience of the healthcare sector.

This measure consists in an electronic platform to record data from hospital pharmacies, microbiology

laboratories, and hospitals.

Investment 1 (C1.1I1): Cyprus Blood Establishment

The objective of this investment is to expand central Blood Establishment facilities in Cyprus.

This measure consists in the construction of facilities and purchase of equipment for Cyprus Blood

Establishment.

2

Investment 2 (C1.1I2): Cyprus public health information system

The objective of this investment is to support public health sector bodies in making evidence-based

decisions on epidemiological matters.

The measure consists in an influenza surveillance platform of the Cyprus Innovative Public Health

Information and Communications Technology (ICT) System.

Investment 3 (C1.1I3): Support for the purchase of medical equipment in private hospitals

The objective of this investment is to modernise the medical equipment of private hospitals.

This measure consists in a financial support scheme for private hospitals to purchase medical equipment.

Investment 4 (C1.1I4): Accreditation of health institutions

The objective of this investment is to support the accreditation of health institutions, enabling their

registration within the National Health System (NHS) and enhancing the quality assurance of health care

services provided.

This measure consists in a financial support scheme for the accreditation of health institutions.

Investment 6 (C1.1I6): Generic cross border e-health services in Cyprus

The objective of this investment is to support Cyprus’s cross-border exchange of patient health

information within the EU.

This measure consists in support for cross-border patient data exchange with the Member States in the

eHealth Digital Service Infrastructure (eHDSI).

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

The objective of this investment is to enhance Cyprus’ civil protection system by establishing a public

warning system for alerting on emergencies.

This measure consists in a public warning system through mobile phones.

Investment 5 (C1.1I5): Construction works and new equipment in Cyprus State Hospitals

The objective of this investment is to finance construction works and new equipment of Cyprus State

Hospitals.

This measure consist in construction works or purchase of equipment for Cyprus State Hospitals.

Reform 3 (C1.1R3): Healthcare provision and reimbursement using value-based models

3

The objective of this reform is to change the reimbursement system for healthcare services.

The measure consists in value-based reimbursement in the General Health System.

4

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

2b C1.1R1

National Centre

for Clinical

Evidence and

Quality

Improvement

Milestone IT system for

clinical

protocols

IT system

accessible

- - - Q4 2025 The IT system for at least 90 clinical protocols,

including an e-learning platform, is accessible. The

contractor shall certify that the clinical protocols have

been peer reviewed.

3 C1.1R2

Design of an

Electronic

platform for the

surveillance of

Nosocomial

Antibiotic

Consumption

and Healthcare

– Associated

Infections

Milestone Adoption of

the list of

health care

facilities

Adoption of the

list of health care

facilities

- - - Q1 2023 Adoption of the list of healthcare facilities that shall be

providing information to the Ministry of Health on

antibiotic consumption and healthcare-associated

infections that shall be monitored by the Ministry of

Health.

4 C1.1R2

Electronic

platform for the

surveillance of

Nosocomial

Antibiotic

Consumption

and Healthcare-

Associated

Infections

Milestone Electronic

platform

Electronic

platform

accessible

- - - Q4 2025 An electronic platform to record data from hospital

pharmacies (nosocomial antibiotic consumption),

microbiology laboratories (antimicrobial resistance),

and hospitals (healthcare-associated infections (HAIs))

shall be accessible.

5 C1.1I1

New facilities

for the Cyprus

Blood

Establishment

and

procurement of

the latest

technology

attendant

equipment

Milestone Contract

signature for

the

construction of

the Cyprus

Blood

Establishment

Signature of the

contract

- - - Q3 2022 Signature of the contract with the selected tenderer(s)

(contractor(s)) selected under a competitive call for

tenders for the construction of the Cyprus Blood

Establishment.

5

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

6 C1.1I1

Cyprus Blood

Establishment

Milestone Blood

establishment

facilities and

equipment

Facilities

constructed and

equipment

purchased

- - - Q2 2025 The Cyprus Blood Establishment facilities are

constructed and equipment is purchased. 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.

7 C1.1I2

Cyprus

Innovative

Public Health

information and

communications

technology

(ICT) System

Milestone Influenza

Sentinel

Surveillance

(ISS)System

Fully operational

system

- -

Q2 2022 The Influenza Sentinel Surveillance System module of

the Cyprus Innovative Public Health information and

communications technology (ICT) System shall be

operational and a system monitoring its effectiveness

shall be in place.

8 C1.1I2

Cyprus Public

Health

information

System

Target Sentinels

registered in

the module

- Number 0 30 Q2 2024 At least 30 doctors are registered as sentinels in the

influenza surveillance module of the Cyprus Public

Health Information System.

9 C1.1I3

Purchase/replac

ement of

medical

equipment in

hospitals

Target Health

institutions

having

benefitted

from the

financial

support

scheme

- Number 0 10 Q4 2023 At least ten of the applicant health institutions of

various categories have received financial support from

the scheme for medical equipment acquisition.

10 C1.1I3

Support for the

purchase of

medical

equipment in

private hospitals

Target Private

hospitals

purchased

medical

equipment

with funding

- Number 10 23 Q4 2025 At least 23 private hospitals have received financial

support from the scheme to purchase medical

equipment.

6

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

from the

financial

support

scheme

12 C1.1I4

Accreditation of

health

institutions

Target Health

institutions

have received

financial

support for

their

accreditation

- Number 0 30 Q2 2026 At least 30 health institutions have received financial

support from the scheme and been accredited based on

International Society for Quality in Healthcare (ISQua)

standards.

13 C1.1I6

Deployment of

generic cross

border e-health

services in

Cyprus

Milestone Completion of

the analysis,

design, and

development

phase of the IT

System for

cross-border e-

health services

Completion of the

analysis, design,

and development

phase of the IT

System, as

provided in a

dedicated report

by the

deliverables

acceptance team

in the contracting

authority

- - - Q4 2023 The analysis, design and development of the IT System

phase shall be completed.

Specifications shall include:

a) Service Location and capability lookup Profile / the

Cross-Community Patient Discovery Profile (to locate

communities that hold patient relevant health data and

the translation of patient identifiers across communities

holding the same patient’s data).

b) open source National Contact Point (OpenNCP)

update that supports the eHDSI Automatic Data

Collection (eADC).

c) Update Patient Summary (PS-A), e-Prescription

(eP), e-Dispencing (eD), unstructured clinical

documents, and patient access to cross border data

services, based on Wave 6 Clinical Document

Architecture (W6 CDA) Implementation Guidelines by

the e-Health network.

14 C1.1I6

Generic cross

border e-health

services in

Cyprus

Milestone Cross-border

patient data

exchange

System for the

exchange of

patient data

accessible

- - - Q2 2025 System for the exchange of patient data between

Cyprus and Member States of the European Union in

the eHDSI is accessible, which may include but it is not

limited to the following functionalities: e-prescription,

e-dispensation, and patient summary. Additionally, the

service for the unstructured original clinical documents

is approved.

7

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

15 C1.1I7

Public warning

system for

emergency

operations

Milestone Public warning

system ready

for pilot

operation

“Contractor’s

correction report

after final testing

and final tests

results report”

issued by the

contractor

- - - Q4 2025 The public warning system through mobile phones is

ready for pilot operation and evidenced by the

“contractor’s correction report after final testing and

final tests results report”.

17 C1.1I5

Construction

works and new

equipment in

Cyprus State

Hospitals

Target Construction

works or

purchase of

equipment in

Cyprus State

hospitals

Number 0 4 Q2 2024 Construction works or purchase of equipment in the

following hospital units: (1) COVID-19 unit at

Famagusta Hospital; (2) Mental Health Hospital;

(3) Invasive Radiology Unit: (4) Paphos General

Hospital.

The Mental Health Hospital shall have a primary

energy demand that is at least 20% lower than defined

by the nearly zero-energy building (NZEB)

requirement.

18 C1.1I5

Construction

works and new

equipment in

Cyprus State

Hospitals

Target Construction

works or

purchase of

equipment in

Cyprus State

hospitals

Number 4 11 Q2 2026 Construction works or purchase of equipment in the

following hospital units: (1) Haemodyalisis Units at

Paphos and Limassol Hospitals; (2) Neurology clinic at

Nicosia General Hospital; (3) Stroke unit at Nicosia

General Hospital; (4) Health Center at Akaki, (5)

Accident and Emergency Units at Nicosia General

Hospital; (6) Accident and Emergency Units at Paphos

General Hospital and (7) Larnaca General Hospital.

The Haemodyalisis Unit at Paphos Hospital, and the

Health Center at Akaki shall have a primary energy

demand that is at least 20% lower than defined by the

nearly zero-energy building (NZEB) requirement.

Purchase of equipment by the State Health Services

Organization (SHSO-OKYPY).

16 C1.1R3

Healthcare

provision and

reimbursement

using value-

based models.

Milestone Value-based

reimbursement

for primary

and in-patient

care

Value-based

reimbursement for

primary and in-

patient care

published

- - - Q4 2024 Health Insurance Organisation (HIO) publishes the

criteria and indicators of value-based reimbursement

for primary and in-patient care. The publication may

include, for example, circulars and announcements.

HIO decision(s) concerning the reimbursement of

healthcare providers within the framework of the

General Healthcare System are published in the official

gazette.

8

B. COMPONENT 2.1: CLIMATE NEUTRALITY, ENERGY EFFICIENCY AND RENEWABLE ENERGY

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 objective of this reform is to support a more efficient use of environmental resources, reduce

greenhouse gas emissions and to increase the penetration of renewable energy.

This measure consists in the entry into force of legal acts on a carbon tax on transport fuels, a

charge on the landfill of municipal waste, an increase of existing water fees and tax incentives for

enterprises and individuals.

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.

9

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 shall 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): Energy-saving investments in SMEs and non-profit organisations

The objective of this investment is to reduce the primary and final energy consumption and the

CO2 emissions in buildings and/or facilities owned or operated by SMEs and non-profit

organisations.

This measure consists in support for building renovation and for making production processes

use less energy.

Investment 2 (C2.1I2): Promoting renewables and individual energy efficiency measures in

dwellings and tackling energy poverty, including in households with vulnerable electricity

consumers

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 households with vulnerable electricity consumers including energy-

poor households and people with disabilities.

This measure consists in providing grants for renewables and individual energy efficiency

measures.

Investment 3 (C2.1I3): Facilitating the transition of local communities towards climate

investments

The objective of this investment is to facilitate the transition of local communities towards climate

mitigation and adaptation.

10

The measure consists in a grant scheme for energy and climate adaptation investments in Local

(Community) Councils.

Investment 5 (C2.1I5): Energy efficiency investments in public buildings

The objective of this investment is to facilitate energy efficiency investments in public buildings.

This measure is composed of two energy efficiency investments: (i) Fire Service Properties and

Schools; and (ii) Nicosia General Hospital.

Investment 6 (C2.1I6): Expansion of the renewable energy and smart grids testing infrastructure

at the University of Cyprus

The objective of this investment is to expand the existing renewable energy and smart grids testing

infrastructure at the University of Cyprus and to connect it with the existing grid.

This measure consists in commissioning renewable energy and smart grids equipment.

Investment 7 (C2.1I7): Mass installation by the Distribution System Operator (DSO) of Smart

Metering Infrastructure (Advanced Metering Infrastructure)

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

This measure consists in the delivery of 400 000 smart meters to the Electricity Authority of

Cyprus and the installation of 200 000 smart meters.

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

The objective of this investment is to monitor greenhouse gas emissions from agricultural activities

in Cyprus, with a view to reducing GHG emissions in agriculture.

The investment consists in a GHG monitoring system.

Investment 9 (C2.1I9): Fire protection

The objective of this investment is to support the capabilities of authorities in Cyprus to cope with

fire hazards and to invest in the protection against the risks faced by citizens, infrastructure, and

forests.

This measure consists in the purchase of a firefighting aircraft, vehicles, and equipment

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

electricity market to competition

The objective of this investment is to introduce a Market Management System (MMS) by the

Cyprus Transmission System Operator as a tool for facilitating the opening of the electricity

market to competition.

11

This measure consists in the installation of the MMS marked by the first financial transactions

taking place through the MMS, and the opening of Cyprus’ electricity market

12

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

19 C2.1R1

Green Taxation

Milestone Entry into force of

legal acts introducing

a carbon tax on

transport fuels, an

increase of existing

water fees, a charge

on the landfill of

municipal waste, and

tax incentives for

enterprises and

individuals

Provision in the

legal acts

indicating the

entry into force

- - - Q2 2026 Entry into force of legal acts, which (a)

introduce a carbon tax on transport fuels,

(b) introduce an increase of existing water

fees,(c) introduce a charge on the landfill of

municipal waste, (d) introduce personal tax

incentives for natural persons undertaking

clean energy and electric mobility

investments, and (e) introduce enhanced

capital allowances for qualifying energy

and climate-related capital expenditures by

enterprises.

21 C2.1R2

Independence of

Cyprus

Transmission

System

Operator

(TSOC) from

the incumbent

Electricity

Authority of

Cyprus

Milestone Law for the

Regulation of the

Electricity Market of

2021

Provision in the

law indicating

the entry into

force of the

2021 "Law for

the Regulation

of the

Electricity

Market"

- - - Q4 2021 Entry into force of the Law for the

Regulation of the Electricity Market of

2021, which shall facilitate the opening of

the electricity market to competition and

boost the uptake of RES by: (a) achieving

the independence of the Cyprus

Transmission System Operator (TSOC)

from the incumbent Electricity Authority of

Cyprus (EAC) (autonomy in governance,

financial autonomy and independence of

TSOC personnel), (b) introducing the

necessary steps for reducing the cost of

electricity for domestic and

commercial/industrial customers and (c)

creating conditions of transparency and

trust to motivate new investors in

generation and supply of electricity.

22 C2.1R3

Digital One-

Stop Shops to

streamline RES

projects

permitting and

to facilitate

Energy

Renovation in

Buildings

Milestone Fully operational IT

platform

Fully

operational IT

platform

accepted by the

Ministry of

Energy,

Commerce, and

Industry

- - - Q4 2022 Fully operational IT platform for (1)

guiding the applicant through the

administrative permit application process

in a transparent manner up to the delivery

of one or several decisions by the

responsible authorities, (2) providing the

applicant with all necessary information

and involve, where appropriate, other

administrative authorities.

13

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

23 C2.1R4

Energy Storage

Regulatory

Framework

Milestone Amendment of the

Transmission and

Distribution Rules

(TDRs) and Trading

and Settlement Rules

(TSRs)

Publication on

the website of

the Cyprus

Energy

Regulatory

Authority of

Amendment of

the

Transmission

and Distribution

Rules (TDRs)

and the Trading

and Settlement

Rules (TSRs)

- - - Q4 2021 Entry into force of an amendment to the

Transmission and Distribution Rules

(TDRs) and Trading and Settlement Rules

(TSRs) which shall provide the necessary

regulatory framework (market rules) and

technical modalities that shall allow storage

facilities to: - participate in the wholesale

electricity market,

- promote the development of an

economically viable, efficient, safe, and

consumer-oriented electricity market that

prioritises the generation of electricity from

renewable energy systems.

24 C2.1I1

Promoting

energy

efficiency

investments in

SMEs and non-

profit

organisations

Milestone Support scheme for

Promoting energy

efficiency investments

in SMEs,

municipalities,

communities, and the

wider public sector

Publication of

call for

proposals for

the support

scheme for

Promoting

energy

efficiency

investments in

SMEs,

municipalities,

communities,

and the wider

public sector

- - - Q4 2021 Issue call for proposals for the support

scheme for promoting energy efficiency

investments in SMEs, municipalities,

communities, and the wider public sector,

following verification of state aid

regulation to be applied by Commissioner

for State Aid Control and Council of

Ministers’ decision approving the scheme’s

objectives. The investment shall aim at

achieving on average at least a 30%

primary energy demand reduction.

26 C2.1I1

Energy saving

investments in

SMEs, and non-

profit

organisations

Target Energy saving

projects in buildings

Number 0 275 Q4 2025 Energy Performance Certificates or

declarations from a qualified expert or

energy auditor on achieved energy savings

issued for 275 energy saving projects.

27 C2.1I2

Promoting

renewables and

individual

energy

efficiency

Milestone First call for proposals

for Promoting

renewables and

individual energy

efficiency measures in

dwellings

First call for

proposals

published

- - - Q2 2021 The first call for proposals for promoting

renewables and individual energy

efficiency measures in dwellings has been

published on the RES and Energy

Conservation Fund website. The

investment shall aim at achieving on

14

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

measures in

dwellings and

tackling energy

poverty in

households with

vulnerable

electricity

consumers

average at least a 30% primary energy

demand reduction.

28a C2.1I2

Promoting

renewables and

individual

energy

efficiency

measures in

dwellings and

tackling energy

poverty in

households with

vulnerable

electricity

consumers

Target Dwellings and

households with

vulnerable electricity

consumers (including

people with

disabilities) having

improved their energy

performance

- Number 0 16 200 Q4 2023 At least 16 200 dwellings, including 1 600

households with vulnerable electricity

consumers (including people with

disabilities), have improved their energy

performance due to the financial support

provided, with an objective to achieve on

average at least a 30% primary energy

demand reduction.

28b C2.1I2

Renewables and

individual

energy

efficiency

measures in

dwellings and

tackling energy

poverty in

households with

vulnerable

electricity

consumers

Target Energy efficiency

measures in dwellings

- Number 16 200 29 300 Q2 2026 Reducing primary energy demand on

average by at least 30% in 29 300

dwellings.

30 C2.1I3

Encouraging the

use of

renewables and

energy savings

Milestone First call for proposals

to support local

authorities in energy

efficiency measures

Publish first call

for proposals

- - - Q3 2021 The first call for proposals to support local

authorities in energy efficiency measures

has been published on the RES and Energy

Conservation Fund Website. The

investment shall aim at achieving on

15

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

by local/wider

public

authorities and

facilitating the

transition of

local

communities

towards climate

mitigation &

adaptation

average at least a 30% primary energy

demand reduction.

32c C2.1I3

Facilitating the

transition of

local

communities

towards climate

investments

Target Grant scheme to

support climate

adaptation

investments

Number - 0 27 Q2 2026 Grants disbursed for at least 27 climate

adaptation investments in Local

(Community) Councils.

35 C2.1I5

Energy

Efficiency

Upgrading of

public buildings

Target Thermal insulation

and photovoltaic

systems installed in

schools

- Number 0 405 Q1 2022 Thermal insulation and photovoltaic

systems installed in at least 405 schools

with an objective to achieve on average at

least a 30% primary energy demand

reduction.

36 C2.1I5

Energy

Efficiency

Upgrading of

public buildings

Target Completion of set up

and installation of

photovoltaics system

at the Nicosia General

Hospital

- Number 0 943 Q4 2023 Completion of set up and installation of PV

system at the Nicosia General Hospital of

total capacity of 943KW.

37 C2.1I5

Energy

Efficiency

investments in

public buildings

Target Installation of

photovoltaic systems

in Fire Service

Properties

- Number 0 650 Q4 2025 Installation of photovoltaic systems, of a

total capacity of 650KW, in Fire Service

Properties.

38 C2.1I6

Upgrading

renewable

energy and

smart grids

testing

infrastructure at

Milestone Signature of contracts

for the installation of

equipment to upgrade

the electricity grid

into a smart grid

Contracts

Signature

- - - Q4 2023 Signature of contracts for the installation of

equipment to upgrade the electricity grid

into a smart grid following a successful

public procurement procedure.

16

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

the University

of Cyprus

39 C2.1I6

Expansion of

the renewable

energy and

smart grids

testing

infrastructure at

the University

of Cyprus

Milestone Acceptance of

renewable energy and

smart grids testing

equipment

Issued

acceptance

certificate(s)

- - - Q4 2024 Acceptance certificate(s) issued, testifying

commissioning and acceptance of the

renewable energy and smart grids testing

equipment.

40 C2.1I7

Mass

installation by

the Distribution

System

Operator (DSO)

of Smart

Metering

Infrastructure

(Advanced

Metering

Infrastructure)

Milestone Contract Signature for

smart electricity

metering

infrastructure

Contract

Signature

- - - Q1 2024 Contract Signature for smart electricity

metering infrastructure (Hardware,

software, and support services).

42 C2.1I7

Mass

installation by

the Distribution

System

Operator (DSO)

of Smart

Metering

Infrastructure

(Advanced

Metering

Infrastructure)

Target Acceptance and

installation of smart

meters

- Number 0 400 000

delivered to

Electricity

Authority of

Cyprus

200 000

installed

Q2 2026 Acceptance of 400 000 smart electricity

meters by the Electricity Authority of

Cyprus and installation of 200 000 of these.

43 C2.1I8

Monitoring and

reduction of

GHG emissions

in agriculture

Milestone Purchase and

installation of

monitoring units for

measuring GHG

Approval of the

equipment and

installation by

the receiving

committee

- - - Q2 2023 Purchase and installation of automobile

unit and permanent monitoring units, for

measuring GHG emissions from

agriculture with the objective of

17

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

emissions from

agriculture

implementing adequate policies to mitigate

GHG emissions.

44 C2.1I8

Monitoring and

reduction of

GHG emissions

in agriculture

Target Reduction of GHG

emissions from

agriculture

- %

(Percentage)

0 10 Q4 2025 Report confirming a 10% reduction of

GHG emissions from agriculture.

45 C2.1I9

Forests fire

protection

Milestone Signing of 8

Agreements/ Contract

Signatures for the

purchase of vehicles,

equipment and

provision of services

and issue of call for

tenders for the

purchase of

firefighting aircraft

Signing of 8

Agreements/

Contract

Signatures

- - - Q2 2022 Signing of 8 Agreements/ Contracts

Signatures with suppliers for the purchase

of vehicles, equipment and provision of

services and issue of call for tenders for the

purchase of firefighting aircraft with the

objective of contributing to climate change

adaptation and to the reduction of the risk

of explosion and expansion of forest fire

and the strengthening protection against the

risks faced by citizens, infrastructure and

forests from a possible fire incident.

47 C2.1I9

Fire protection

Milestone Acceptance of

firefighting aircraft

vehicles and

equipment

Acceptance

certificates

issued for the

delivery of

firefighting

aircraft vehicles

and equipment

- - - Q2 2026 Acceptance certificates issued for the

delivery of firefighting aircraft, vehicles

and equipment.

48 C2.1I10

Market

Management

System (MMS)

to facilitate the

opening of the

electricity

market to

competition

Milestone Installation of the

Market Management

System

Issuing of Final

Acceptance

Certificate for

the Market

Management

System.

- - - Q1 2023 Installation of the Market Management

System (MMS) for the Cyprus Electricity

Market.

48a C2.1I10

Market

Management

System (MMS)

to facilitate the

Milestone First financial

transactions of the

MMS

CERA Decision

declaring the

first day of

electricity

market trading,

Q3 2025 Decision by CERA on the market operation

evidenced by the first financial transactions

performed through the MMS.

18

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

opening of the

electricity

market to

competition

results of the

electricity

market for the

first week of

trading.

19

C. COMPONENT 2.2: SUSTAINABLE TRANSPORT

This component of the Cyprus recovery and resilience plan aims to promote cleaner, smarter, safer,

and fairer urban mobility by encouraging a modal shift to sustainable modes of transport, 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): Installation of an Intelligent Transport System using Digital Twin

technologies

The objective of this reform is to introduce smart features to technological infrastructure.

This measure consists in installing an Intelligent Transport System.

Reform 2 (C2.2R2): Entry into force of legal act(s) regarding electric vehicle (EV) recharging

infrastructure

The objective of this reform is to establish electro-mobility infrastructure for recharging EVs.

This measure consists in the entry into force of legal act(s) on recharging infrastructure for EV.

Reform 3 (C2.2R3): Entry into force of legal act(s) for the exclusion of polluting vehicles

The objective of this reform is to provide the regulatory framework to create incentives for

replacing old and polluting vehicles, and for using sustainable commuting and mobility solutions.

This measure consists in the entry into force of legal act(s) allowing for the adoption of measures

linked to the exclusion of polluting vehicles from certain areas.

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

The objective of this investment is to create the necessary infrastructure to facilitate the transition

to electro-mobility.

This measure is composed of three sub-measures:

Sub-measure 1: installation of publicly accessible EV charging stations and delivery of

charging points used for EVs of the public sector fleet

20

This investment consists in the installation of publicly accessible EV charging stations and the

delivery of charging points used for EVs of the public sector fleet.

Sub-measure 2: a grant scheme for the installation of publicly accessible charging points

in the premises of businesses or local authorities

This scheme consists in support for the installation of charging points in the premises of businesses

or local authorities.

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

This scheme consists in providing financial incentives to support charging of EVs from RES,

including the installation of photovoltaic systems and charging equipment.

Investment 3 (C2.2I3): Advance the use of Electric Vehicles (EVs)

The objective of this investment is the purchase of EVs, LEVs, electric bicycles and public or non-

motorised modes of transport, while progressively phasing out older polluting vehicles from

circulation.

Sub-measure 1: kick-start the transition to electro-mobility in the public sector and local

authorities

This investment consists in the purchase of electric vehicles for the public sector.

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

This scheme consists in the purchase or registration of electric vehicles and electric bicycles.

Sub-measure 3: a scrapping scheme for the most polluting vehicles combined with

incentives for non/low emission mobility options

This scheme incentivises motorists to give up combustion engine vehicles in exchange for

alternative mobility options, for example the purchase of a LEV or of an electric bicycle and/or

free annual bus tickets. It also incentivises recycling of scrapped vehicles.

Investment 1 (C2.2I1): Sustainable Urban Mobility Projects (SUMP) and accessibility-enhancing

measures

The objectives of this investment are to create the necessary infrastructure to enhance urban

mobility with more environmentally friendly options and to increase the city environment and road

safety.

These measures consist in investments for the accessibility and safe movement of pedestrians,

cyclists, and persons with disabilities in urban centres.

21

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

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

52 C2.2R1

Installation of an

Intelligent

Transport System

using Digital Twin

technologies

Target Installation and

connection to the

National Access

Point of at least

150 sensors

- Number 0 150 Q1 2024 Acceptance certificates verifying the

installation and connection to the National

Access Point of a total of 150 traffic sensors

53 C2.2R1

Installation of an

Intelligent

Transport System

using Digital Twin

technologies

Target Installation and

connection to the

National Access

Point of a total of

300 sensors

- Number 150 300 Q4 2025 Acceptance certificates verifying the

installation and connection to the National

Access Point of a total of 300 traffic

sensors.

54 C2.2R2

Entry into force of

legal act(s)

regarding electric

vehicle (EV)

recharging

infrastructure

Milestone Entry into force of

legal act(s) related

to electric vehicle

charging points

Entry into force

of the legal

act(s)

- - - Q4 2024 Entry into force of legal act(s) regarding

electric vehicle (EV) recharging

infrastructure.

The legal act(s) shall include a mechanism

for the monitoring of the electric vehicle

recharging infrastructure.

55 C2.2R3

Progressively

phase out the most

polluting vehicles,

especially in

polluted urban

areas

Milestone Entry into force of

the legislative act

related to the

phasing out of the

most polluting

vehicles

Provision in the

legislative act

indicating the

entry into force

of the

legislation

- - - Q4 2023 Entry into force of the legislative act

regarding the exclusion of polluting vehicles

from areas or operations.

The legislative act shall create the legal

basis to enforce the adoption of restrictive

measures related to the circulation of motor

vehicles, with the aim to progressively

phase out the most polluting vehicles.

61 C2.2I2

Creation of

electro-mobility

infrastructure

Target Installation or

delivery of

charging points

- Number 0 1 000 Q2 2026 Acceptance certificate or certificate of

electrical installation, issued by the

Electrical authority of Cyprus for the

installation or delivery for at least 1 000

charging points.

63a C2.2I3

Advance the use

of Electric

Vehicles (EVs)

Target Purchase or

registration of

electric vehicles

and electric

bicycles

- Number 0 4 412 Q2 2026 Purchase or registration of at least 4 412

electric vehicles of categories M1, M2-3, N,

L1e-L7e and electric bicycles.

22

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

65 C2.2I3

Advance the use

of Electric

Vehicles (EVs)

Target Scrapping of high

emission vehicles

- Number 0 1 393 Q2 2026 Completion certificate confirming the

scrapping of at least 1 393 combustion

engine vehicles replaced by electric

bicycles, annual bus ticket(s) and low

emission vehicles.

58 C2.2I1

Sustainable Urban

Mobility Projects

(SUMP) and

accessibility

enhancing

measures

Target Construction work

for at least 35km

of sustainable

transport routes

- Number 0 35 Q1 2026 Taking over certificates issued by the

Contracting Authority confirming

construction work for at least 35km of

sustainable transport routes.

23

D. COMPONENT 2.3: SMART AND SUSTAINABLE WATER MANAGEMENT

This component of the Cypriot recovery and resilience plan addresses inefficiencies in water

management. The objectives of this component are to ensure 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 this investment is to define actions addressing structural weaknesses in the water

resource management in Cyprus.

The reform consists in the adoption of an action plan on water resource management.

Investment 2 (C2.3I2): Water Treatment Plants

The objective of this investment is to support projects in water treatment plants.

The measure consists in projects in the water treatment plants of Limassol, Asprokremmos,

Tersefanou, Kornos and Kannaviou.

Investment 3 (C2.3I3): Integrated Monitoring and Control Management System for the Water

Development Department’s infrastructure

The objective of this investmentis to support the Water Development Department (WDD).

The measure consists in a Monitoring and Control Management System for the WDD.

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

The objective of this investment is to support management and energy efficiency of the water

network of Larnaca and Limassol.

The measure consists in sensors, smart meters, and digital twin decision support system(s).

24

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

The objective of this investment is to mitigate the negative effects from flooding events.

The measure consists in anti-flood work(s) or reconstruction or construction of streets and

pavements, and in landscaping of flood channel(s).

Investment 6 (C2.3I6): Water security projects

The objective of this investment is ensuring water security of Nicosia, Limassol and Klavdia.

The measure consists in water reservoir(s) and a water treatment plant.

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 antipollution vessels with the possibility of

autonomous oil recovery operations, 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.

25

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

66 C2.3R1

Water Resource

Management

Reform

Milestone Adoption and

publication of an

action plan on

water resource

management

Adoption and

publication of the

action plan on the

website of the

Ministry of

Agriculture, Rural

Development and

Environment

- - - Q2 2025 Adoption by the Council of Ministers and

publication on the website of the Ministry of

Agriculture, Rural Development and

Environment of an action plan on water

resource management.

70 C2.3I2

Water

Treatment

Plants

Milestone Projects in Water

Treatments

Plant(s)

Issued acceptance

certificates

Q4 2025 Projects in Water Treatment Plant(s) as

follows:

Installation of activated carbon filtration

system(s) in Tersefanou, Asprokremmos and

Limassol

Installation of on-site chlorine dioxide

generation system(s) in Limassol,

Asprokremmos, Tersefanou, Kornos and

Kannaviou

Installation of filtration system for the

expansion of the Asprokremmos Water

Treatment Plant including the motor control

center.

71 C2.3I3

Integrated

Monitoring and

Control

Management

System for the

Water

Development

Department’s

infrastructure

Milestone Completion of the

detailed

requirements

analysis and

system design

document

Approval of

detailed

requirements

analysis and

system design

document by the

Steering

Committee of the

Water

Development

Department

- - - Q2 2022 The requirements analysis and system design

document shall describe all the aspects,

features, and functionalities of the system,

including quality sensors, operational sensors

(such as flow, level, and pressure), energy

meters, communications devices, IT

equipment (hardware, software). The detailed

requirements analysis and system design shall

determine the exact number and type of

equipment required for this project.

74a C2.3I4

Smart Water

and Sewerage

Networks

Management

Target Delivery and

installation of

photovoltaics at

the Larnaca

Wastewater

Treatment Plant

Number 0 700 Q1 2023 Delivery and installation of photovoltaic

equipment at the Larnaca Wastewater

Treatment Plant generating power of at least

700KW.

26

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

76b C2.3I4

Smart Water

and Sewerage

Networks

Management

Milestone Projects in

Larnaca and

Limassol

Issued acceptance

certificates

- - - Q2 2026 Projects as follows:

a. At least 200 quality and pressure

sensors and at least 100 000 smart

meters for consumption reading.

b. Digital Twin decision support

system and smart water living lab in

Limassol.

c. Digital Twin decision support

system in Larnaca.

77a C2.3I5

Anti-flood and

water collection

measures

Milestone Completion of

construction

works of drainage

network and

reconstruction of

streets and

pavements in

areas of Nicosia

Project

management team

certifies the

completion of the

construction

- - - Q4 2022 Completion of construction of drainage

network and reconstruction of streets and

pavements in Agios Antonios, Old city,

Likavitos and Agioi Omologites areas of

Nicosia with a total length of approx. 6.5km.

77b C2.3I5

Anti-flood and

water collection

measures

Milestone Anti-flood

work(s)

or reconstruction

or construction of

streets and

pavements in

Nicosia and

Limmasol

Taking over

certificates

- - - Q2 2026 Anti-flood work(s) or reconstruction or

construction of streets and pavements in

Nicosia and Limassol.

78 C2.3I5

Anti-flood and

water collection

measures

Milestone Construction

works for

rainwater

collection and

recycling in

Kladeri area

Taking over

certificates

- - - Q2 2024 Construction of rainwater collection and

recycling system in Kladeri area.

79 C2.3I5

Anti-flood and

water collection

measures

Milestone Landscaping of

flood channel(s)

in Livadia

Taking over

certificate

Q4 2025 Landscaping of flood channel(s) in Livadia.

80 C2.3I6

Water security

projects

Target Construction of

two glass lined

steel reservoirs in

Nicosia district

m3 0 16 000 Q2 2024 Construction of two glass lined steel reservoirs

in Nicosia District of a total capacity of

16 000m3.

81 C2.3I6

Water security

projects

Target Water reservoir(s)

and water

treatment plant

m3 16 000 52 800 Q2 2026 a. Two glass-lined steel water

reservoirs in Nicosia

27

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

b. one concrete water reservoir in

Klavdia

c. three water reservoirs in Limassol

d. water treatment plant in Limassol.

The total capacity of the water reservoirs in

Nicosia, Larnaca and Limassol shall be at least

52 800m3.

84 C2.3I8

Protection of the

marine

ecosystem from

hazards through

oil spills

Milestone Delivery, quality

inspection to

verify their

operational

effectiveness and

acceptance of

three vessels and

two aerial

spraying systems

Expert’s reporting

and issuance of

quality certificate

of the operational

effectiveness and

acceptance of

vessels and aerial

spraying systems

- - - Q1 2025 Delivery, quality inspection to verify their

operational effectiveness and acceptance of

three vessels (one vessel of 25m in length

approximately to operate within the Cypriot

Exclusive Economic Zone and two vessels of

8-11m in length approximately to operate

within coastal waters and two aerial spraying

systems).

28

E. COMPONENT 3.1: NEW 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 higher

education institution(s).

The reform aims to establish 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 higher education institution(s)

to develop new curriculum/a.

29

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

Reform 2 (C3.1R2): On-line platform for trade and information symmetry in the fresh produce

supply chain

The objective of the reform is to address long-standing drawbacks of the fresh produce supply

chain.

The reform consists in the entry into force of a law on unfair practices in transactions in the

local fresh produce market. A Platform shall be offered to Producers’ Organisations in the fresh

produce market.

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

The objective of this reform is to enhance the productivity and sustainability of the primary

sector.

The reform consists in the support to farmers for the upgrade of the collection of data related

to dairy production and the genomic identification of their sheep and goats.

Investment 2 (C3.1I2): Support of isotopic database of Cypriot food or drink products

The objective of this investment is to create a blockchain-based verification methodology for

the authentication of local products by using isotopic database(s).

The measure consists in the purchase and instalation of new Liquid Chromatography - Isotopic

Ratio Mass Spectrometer (LC-IRMS) for isotopic characterisation; integrated isotopic

DataBase(s) and blockchain system are connected for at least ten Cypriot food or drinks

products.

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 inthe 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 5 (C3.1I5): Creation of a National Commercial Identity and promotion of the

traditional product “halloumi”

30

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

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 supporting the production of enterprises in the agricultural

sector

The objective of this investment is to support the resilience of the agricultural sector,

diversification of economic activity, and incentivise investments in new businesses or in the

technological advancement of existing businesses.

The measure consists in providing grants to enterprises in the agricultural sector to finance

investments in their production capabilities.

Investment 7 (C3.1I7): Scheme for the competitiveness and/or the energy efficiency of large

enterprises in Cyprus

The objective of this investment is to support investments by large enterprises, including

production process, technological and energy efficiency.

The measure consists in the publication of the call for proposals and the signature of grant

agreements with at least 10 enterprises.

Sub-component 3.1.3 Sustainable, high value-added tourism

Investment 8 (C3.1I8): Added value of tourism

The objective of this investment is to support tourism, attract new markets, reduce seasonality,

and improve the built environment, especially in the countryside, mountainous and remote

areas.

This measure consists in signing grant agreements and issuing acceptance certificates or proof

of payments for renovation works and equipment in the hospitality sector.

Investment 9 (C3.1I9): Circular economy in hotels

The objective of this investment is to facilitate the transition of hotels’ business model to

circular, or to launch circular products or services.

This measure consists in certification.

Investment 10 (C3.1I10): Enrichment of tourism

The objective of this investment is to support the economy in rural, mountainous, and remote

areas and to diversify tourism.

31

This measure consists in (i) the construction of the Aphrodite Route, and (ii) investments

including, but not limited to, construction works, equipment, information and communication

technologies, and advisory services for enterprises or local community boards.

Sub-component 3.1.4 Circular economy

Reform 4 (C3.1R4): Circular economy

The objective of this reform is to support the circular economy model in the country.

The measure consists of an Action Plan and a grant scheme for business investment in the

circular economy.

Reform 5 (C3.1R5): Waste management coordination unit in the Department of Environment

The objective of this reform is to monitor municipal waste management.

This measure consists in a decision by the Council of Ministers on the framework for a unit for

waste management coordination in the Department of Environment.

Investment 12 (C3.1I12): Waste management towards circular economy

The objective of this investment is to contribute to recycling of dry recyclables. This measure

consists in the installation of 50 green kiosks for dry recyclables to help local authorities in

remote areas to improve their waste management schemes.

Investment 11 (C3.1I11): Extension of the Cyprus Green Points Network

The objective of this investment is the management of solid waste and the protection of the

environment and public health.

This measure consists in the setup of six Green Points to deposit specific household and

municipal waste streams.

32

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

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

85 C3.1R1

Move agricultural

practices from the

20th century to

the 21st century

by investing in a

national centre for

excellence in agri-

tech

Milestone Cooperation between

the Agricultural

Research Institute and

higher education

institution(s), for at

least one MSc

programme

Entry into force of

signed cooperation

agreement(s)

- - - Q4 2022 Entry into force of legally binding

document(s) establishing the

collaboration for at least one MSc

programme signed between the

Agricultural Research Institute and higher

education institution(s).

86 C3.1R1

Move agricultural

practices from the

20th century to

the 21st century

by investing in a

national centre for

excellence in agri-

tech

Milestone Master in the wider

domain of Agriculture

Media announcement

and communication by

competent authorities

- - - Q2 2023 Enrolment of students and start of a

Master in the wider domain of

Agriculture.

87 C3.1R2

On-line platform

for improving the

trade and

information

symmetry in the

fresh produce

supply chain

Milestone Law on unfair

practices in

transactions in the

local fresh produce

market

Provision in the law

indicating the entry into

force of the new law on

unfair practices in

transactions in the local

fresh produce market

- - - Q2 2022 Entry into force of a new law which shall

address unfair trading practices in

transactions in the local fresh produce

market, such as unilateral and retroactive

amendments to contracts, last-minute

cancellations, payment deadlines longer

than 30 days, payment for damaged or

unsold products and other actions

affecting those involved in the production

and distribution chain of agricultural

products.

88 C3.1R2

On-line platform

for trade and

information

symmetry in the

fresh produce

supply chain

Milestone Platform for recording

transactions in the

local fresh produce

market

Platform available to

Producers’

Organisations

- - - Q2 2024 Online Platform for recording transactions

in the fresh produce market shall be

available to Producers’ Organisations.

33

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

90 C3.1R3

Genetic

improvement of

the Cyprus sheep

and goat

population

Milestone Genomic

identifications

registered in ARI

database.

Aid disbursed and

genomic identifications

registered in ARI

database.

Q2 2026 Aid has been disbursed to farmers for the

upgrade of the collection of data related to

dairy production. Genomic identifications

for at least 15 000 unique sheep and goats

have been registered in ARI (Agricultural

Research Institute) database.

93 C3.1I2

Enhancement of

isotopic database

of traditional

Cypriot products

Milestone Liquid

Chromatography-

Isotopic Ratio Mass

Spectrometer (LC-

IRMS) equipment

Signed statement of the

acceptance of

equipment to the

standard quality and

time specified in the

tender documents and

the signed contract

- - - Q4 2021 Purchase and Install New Liquid

Chromatography- Isotopic Ratio Mass

Spectrometer (LC-IRMS) equipment for

isotopic characterisation.

94 C3.1I2

Support of

isotopic database

of Cypriot food or

drink products

Target Products connected to

the system

- Number 0 10 Q1 2025 Integrated Isotopic DataBase(s) and

blockchain system are connected for at

least ten Cypriot food or drinks products.

95 C3.1I3

Upskill existing

and future farmers

Target Scholarships granted - Number 0 5 Q4 2022 At least five scholarships granted to

secondary school graduates to study

degree courses related to agriculture, in

cooperation with the Department of

Agriculture, the Agricultural Research

Institute and local universities.

97 C3.1I5

Creation of a

National

Commercial

Identity and

promotion of the

traditional product

“halloumi”

Milestone Action Plans for (a)

the “made in Cyprus”

branding, and (b) for

the promotion of the

halloumi cheese

Publication of the

Council of Ministers’

decision and of the

action plan

- - - Q1 2022 Adoption by the Council of Ministers of

Action Plans that shall consist of:

(1) assisting businesses to promote their

products and services on the basis of the

“made in Cyprus” branding, and

(2) increasing the distinctiveness of the

halloumi cheese as an authentic Cyprus

product and designing a promotional and

awareness campaign for it.

99 C3.1I6

Scheme for

supporting the

production of

Target Grant agreements

signed with

enterprises in the

agricultural sector

- Number 0 120 Q1 2026 Signature of grant agreements with at least

120 enterprises in the agricultural sector

for supporting their production

capabilities.

34

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

enterprises in

agricultural sector

100 C3.1I7

Scheme for the

competitiveness

and/or the energy

efficiency of large

enterprises in

Cyprus

Milestone Start of the grant

scheme on large

enterprises

Publication of the call

for proposals on the

Ministry website

- - - Q3 2023 Following scheme approval by the

Council of Ministers, issuance of call for

proposals for the award of grants to large

enterprises to expand existing business

through investments that enhance the

technological level, the production

process, and their productivity, as well as

to undertake investments that improve

their energy performance. The terms of

reference including eligibility criteria that

ensure that the selected projects comply

with the ‘Do no significant harm’

Technical Guidance (2021/C58/01)

through the use of an exclusion list and the

requirement of compliance with the

relevant EU and national environmental

legislation.

102a C3.1I7

Scheme for the

competitiveness

and/or the energy

efficiency of large

enterprises in

Cyprus

Target Grant agreements

signed with

enterprises

- Number 0 10 Q2 2026 Signature of grant agreements with at least

10 enterprises.

103 C3.1I8

Added value of

tourism

Target Grant agreements

signed with

enterprises in the

hospitality sector

- Number 0 186 Q2 2024 Signature of grant agreements with at least

186 enterprises in the hospitality sector.

104 C3.1I8

Added value of

tourism

Target Grant to hotels or

other tourism

establishments

- Number 0 36 Q2 2026 Signature of grant agreements with at least

36 hotels or other tourism establishments

for renovation, refurbishing and/or

equipment.

104c C3.1I8

Added value of

tourism

Milestone Renovation works and

equipment for

Acceptance

certificate(s) or proof

of payment

- - - Q4 2025 Acceptance certificate(s) or proof of

payment for renovation works and

35

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

Filoxenia Conference

Centre

equipment for Filoxenia Conference

Centre

105 C3.1I9

Promotion of

circular economy

in hotel

establishments

Target Coaching scheme for

circular economy

- Number 0 50 Q2 2022 Signed collaboration agreements with at

least 50 hotels have been signed for

tailored business coaching for circular

economy.

106 C3.1I9

Circular economy

in hotel

establishments

Target Certified circular

hotels

- Number 0 18 Q1 2026 At least 18 hotels certified as circular

hotels according to the national

certification scheme national standards.

107 C3.1I10

Enrichment of

tourism

Milestone Aphrodite Route Taking-over certificate - - - Q1 2024 Taking-over certificate for construction

works for the Aphrodite Route.

108 C3.1I10

Enrichment of

tourism

Target Investments,

including but not

limited to

construction works,

equipment,

information and

communication

services, and advisory

services.

- Number 0 200 Q4 2025 Investments, including but not limited to

construction works, equipment,

information and communication

technologies, and advisory services in at

least 200 enterprises or local community

boards.

109 C3.1R4

Enhancement of

circular economy

in the Industry

Milestone Approval of the

National Action Plan

for the Enhancement

of Circular Economy

in Cyprus

Publication of the

Council of Ministers’

decision for the

approval of the

National Action plan.

- - - Q4 2021 Approval, by the Council of Ministers, of

the National Action Plan for the

Enhancement of Circular Economy in

Cyprus

110 C3.1R4

Circular economy

Target Signed grant

agreement with

companies which are

moving into a circular

operating model

- Number 0 25 Q2 2026 Signature of grant agreements with at least

25 companies moving to a circular

operating model

111 C3.1R5

Waste

management

coordination unit

Milestone Waste management

coordination unit

Publication of the

Council of Ministers

Decision

- - - Q2 2025 Approval of the waste coordination unit in

the Department of Environment by the

Council of Ministers.

36

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

in the Department

of Environment

112 C3.1I12

Waste

management

towards circular

economy

Milestone Signature of the

contract for the

installation of Green

kiosks

Signature of the

contract

- - - Q3 2023 Signed contract for the set up and

installation of at least 50 Green kiosks for

dry recyclables.

115 C3.1I12

Waste

management

towards circular

economy

Target Installation of green

kiosks

- Number 0 50 Q4 2025 At least 50 green kiosks are installed.

116b C3.1I11

Extension of the

Cyprus Green

Points Network

Target Installation of six

Green Points

- Number 0 6 Q2 2026 Six Green Points are installed.

37

F. COMPONENT 3.2: ENHANCED RESEARCH AND INNOVATION

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): National Research and Innovation Policy

The objective of the reform is to support the R&I Ecosystem.

This measure consists in the adoption of the R&I Strategy and the Action Plan.

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,

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): Support access to publicly funded research infrastructure

The objective of the reform is to support access to publicly funded research infrastructure.

38

This measure consists in the publication of the National Policy of the Republic of Cyprus for

Open Science Practices.

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

The objective of the investment is to support academia-business collaboration and

commercialisation of research results to enhance technology transfer in Cyprus.

This measure consists in a central Knowledge Transfer Office.

Investment 2 (C3.2I2): Innovation funding programmes

The objective of the investment is to support enterprises and start-ups on R&I activities and to

support research organisations to create open access research infrastructures.

This measure consists in projects on R&I activities.

Investment 3 (C3.2I3): R&I funding programme on green transition

The objective of the investment is to support projects on green transition activities.

This measure consists in projects on green transition R&I activities.

Investment 4 (C3.2I4): Funding schemes for R&D activities on dual-use technologies and

classified laboratories

The objective of the investment is to support dual-use technologies, which would otherwise

only serve government/military purposes, for civilian, commercial and societal interests.

The measure consists in the signature of grant agreements and the issuing of facility security

clearance certificates.

39

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

120 C3.2R1

National R&I

Policy and

policy tools

Milestone Adoption of the

national R&I

Strategy and of the

Action Plan to

implement it

Publication of

the Council of

Ministers’

decision

- - - Q4 2022 Develop an integrated R&I Strategy,

providing a long-term perspective

framework, ensuring a focused effort and

commitment for implementation, over

time, on behalf of the State and

stakeholders involved in the national R&I

system, and a digital tool for the dynamic

mapping of the R&I ecosystem.

121 C3.2R1

National

Research and

Innovation

Policy

Milestone Performance-based

funding

mechanism; open

access policy

framework for

publicly funded

research and

technological

infrastructure;

framework for

monitoring and

coordinating the

participation in

ESFRI Landmarks

Approval of a

performance

based funding-

mechanism;

publishing

online an open

access policy

framework for

publicly funded

research and

technological

infrastructure;

publishing

online a

framework

- - - Q2 2026 Approval by the Council of Ministers of a

performance-based funding mechanism

for publicly funded research organizations,

which may include but is not limited to the

Centers of Excellence.

Publishing online an open access policy

framework for publicly funded research

and technological infrastructure, which

may include but is not limited to access

condition(s) and pricing.

Publishing online a framework for

monitoring and coordinating the

participation in European Strategy Forum

on Research Infrastructures (ESFRI)

Landmarks.

122 C3.2R2

Incentives for

investments and

human capital

in R&I

Milestone Tax exemption of

legal entities for

investing in

innovative

companies

Provision in the

law indicating

the entry into

force of the

legislation

- - - Q1 2022 Entry into force of a law establishing the

tax exemption of corporate investors (legal

entities) for investing in innovative

companies.

123 C3.2R3

Policies to

foster access to

publicly funded

research

infrastructure

and laboratories

Milestone Digital registry to

record and publish

research

infrastructure

Link to the

digital registry

published in the

Deputy Ministry

for Research,

Innovation and

- - - Q4 2022 Development and start of operation of a

digital registry to record and publish

research infrastructure that shall facilitate

the request of access of interested parties to

such infrastructure. It shall include the

mapping of all publicly funded research

institutions (under Horizon 2020, national

40

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

Digital Policy

website

schemes). It shall also improve visibility of

the Research Institutions and support

collaboration with the private sector.

124 C3.2R3

Support access

to publicly

funded research

infrastructure

Milestone National Policy of

the Republic of

Cyprus for Open

Science Practices

Publication of

the National

Policy of the

Republic of

Cyprus for Open

Science

Practices

- - - Q4 2024 Publication of the National Policy of the

Republic of Cyprus for Open Science

Practices.

125 C3.2I1

Set up and

operate a

central

Knowledge

Transfer Office

(KTO)

Milestone Launch of KTO Opening of

KTO’s first case

- - - Q2 2022 The Research and Innovation Foundation,

responsible for putting in operation the

KTO, has hired or contracted highly

trained staff and/or experts to provide

expert knowledge transfer services.

Systems and tools shall be in place to

support KTO operation. The KTO shall

start the provision of services to

universities, other research organisations

or enterprises.

126 C3.2I1

Set up a central

Knowledge

Transfer Office

(cKTO)

Target Progress report on

the provision of

knowledge transfer

support services

- Number 0 30 Q4 2025 Progress report issued by META, on the

provision of knowledge transfer support

services for at least 30 projects.

cKTO business plan issued by the

Research and Innovation Foundation

(RIF), which may include but is not limited

to a SWOT analysis.

127 C3.2I2

Innovation

funding

programmes for

start-ups,

innovative

companies, and

SMEs

Milestone Signature of grant

agreements for 50%

of budget

Grant

agreements

signed

- - - Q4 2022 Signing of grant agreements which commit

at least 50% of total budget (contracts of a

total value of at least EUR 26 000 000 total

budget) for innovation funding

programmes for start-ups, innovative

companies and SMEs, with terms of

reference including eligibility criteria that

ensure that the selected projects comply

with the ‘Do no significant harm’

Technical Guidance (2021/C58/01)

through the use of an exclusion list and the

requirement of compliance with the

41

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

relevant EU and national environmental

legislation.

128 C3.2I2

Innovation

funding

programmes for

start-ups,

innovative

companies, and

SMEs

Target Completed projects

to carry out R&I

related activities

- Number 0 70 Q3 2023 At least 70 completed projects to carry out

R&I related activities.

129 C3.2I2

Innovation

funding

programmes

Target Projects on R&I

activities

- Number 70 231 Q2 2026 Reports issued by the RIF for at least 231

projects on R&I activities.

130 C3.2I3

R&I funding

program on

green transition

Milestone Signature of grant

agreements for a

R&I funding

programme of EUR

6 million budget

Grant

agreements

signed by the

Director of the

Research and

Innovation

Foundation

- - - Q4 2022 Signing of grant agreements for the

selected proposals to be funded under a

R&I funding program on green transition,

with a total budget of EUR 6 million, with

terms of reference including eligibility

criteria that ensure that the selected

projects comply with the ‘Do no

significant harm’ Technical Guidance

(2021/C58/01) through the use of an

exclusion list and the requirement of

compliance with the relevant EU and

national environmental legislation.

131a C3.2I3

R&I funding

program on

green transition

Target Projects on green

transition R&I

activities

- Number 0 10 Q2 2026 Reports issued by the RIF for at least 10

projects on green transition R&I activities.

42

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

132 C3.2I4

Funding to

organisations

performing

R&D activities

on dual

technologies

Milestone Signing of grant

agreements which

commit 80% of

total budget for

funding to

organisations

performing R&D

activities on dual

technologies

Grant

agreements

signed

- - - Q2 2023 Signing of grant agreements which commit

80% of total budget (contracts of at least a

total value of 2 400 000 euro total budget)

for funding to organisations performing

R&D activities on dual technologies, with

terms of reference including eligibility

criteria that ensure that the selected

projects comply with the ‘Do no

significant harm’ Technical Guidance

(2021/C58/01) through the use of an

exclusion list and the requirement of

compliance with the relevant EU and

national environmental legislation.

133 C3.2I4

Funding

schemes for

R&D activities

on dual-use

technologies

and classified

laboratories

Target Facility security

clearance

certificates

- Number 0 16 Q2 2026 At least 16 facility security clearance

certificates issued.

43

G. COMPONENT 3.3: BUSINESS SUPPORT FOR COMPETITIVENESS

This component of the Cypriot Recovery and Resilience plan 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 four investments, to be completed by Q2

2026.

The component addresses the Country-Specific Recommendation 3 of 2020 and Country-Specific

Recommendation 4 of 2019.

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

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

Intellectual Property.

The objective of this investment is to support and digitalize the Department of Registrar of Companies

and Intellectual Property.

This measure consists in a Registry Platform for the Companies Section of the Department of

Registrar of Companies and Intellectual Property and trainings being provided.

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): Supporting Fast-Track Business Activation Mechanism

The objective of this reform is the digitalisation of business support.

This measure consists in an interactive digital platform for business support being accessible.

44

Reform 7 (C3.3R7): Screening of Foreign Direct Investment

The objective of this reform is to establish a mechanism for assessing foreign direct investment in the

economy.

This measure consists in the entry into force of a Foreign Direct Investment screening law.

Reform 4 (C3.3R4): National Promotional Agency

The objective of this reform is to facilitate access to finance for enterprises.

This measure consists in the appointment of the Board of Directors of a National Promotional Agency

(NPA).

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): A Regulatory Sandbox

The objective of the measure is to allow companies to test products and services in a controlled

environment.

The investment consists in a Regulatory Sandbox for Fintech, start-ups, and other companies.

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

The objective of this reform is to support the integration of digital technology in enterprises

established in Cyprus.

This measure consists in the provision of grants for digital investments of enterprises.

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

The objective of this investment is the support of access to alternative sources of finance.

This measure consists in the incorporation of an equity fund.

Reform 8 - (C3.3R8): The Provision of Crowdfunding Services for Business Law

The objective of the reform is to foster a secure and transparent crowdfunding environment,

promoting alternative sources of financing opportunities for start-ups and SMEs, while maintaining

high standards of investor protection.

The reform consists in the entry into force of the Provision of Crowdfunding Services for Business

Law.

45

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

134 C3.3R1

Facilitation of

Strategic

investments

Milestone Law for

strategic

investments

Provision in the law

indicating the entry

into force of the law

- - - Q1 2022 Entry into force of a law supporting

strategic investments in Cyprus which

shall include the following elements:

streamlining of procedures for licencing

strategic investment, project manager for

each project, timely issuance of building

permits.

135 C3.3R1

Facilitation of

Strategic

investments

Milestone Organisational

capacity’s

enhancement

for the

facilitation of

strategic

investments

Publication in the

official gazette the

setup of a

government sector

facilitating the

reform, and of the

process system and

guidelines, and

stated verification

by the coordinating

authority of training

completion

- - - Q2 2023 Publication in the official gazette of the

completion of the setup of a sector in the

Department of Town Planning and

Housing for the enhancement of the

facilitation of strategic system; publication

of the process system and of the guidelines

design; and reporting by the Coordinating

authority of key personnel training for the

implementation of the reform.

136 C3.3R2

Enhancing

Fast-Track

Business

Activation

Mechanism

Milestone Establishment

of an electronic

system where

investors can

submit their

online

application

Announcement by

the Ministry of

Commerce of the

electronic system

accepting

applications

- - - Q4 2022 Upgrade of the services of applications for

business permit issuance, guidance for

establishment and operation, provision of

information for all the necessary permits

required by the company to start

operations, facilitation for the issuance of

residence and employment permits in

Cyprus for third-country nationals,

application for registration as a foreign

interest company through the

establishment of an electronic system

where investors may submit their online

application.

137 C3.3R2

Supporting

Fast-Track

Business

Activation

Mechanism

Target Investment

application

assessment

through the

platform

- Number 0 50 Q4 2025 Assessment of at least 50 applications for

investment through the platform.

46

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

138a C3.3R7

Screening of

Foreign Direct

Investment

Milestone Entry into force

of the legal

act(s) on

foreign Direct

Investment

screening

Entry into force of

the legal act(s)

- - - Q2 2026 Entry into force of the legal act(s) on the

foreign Direct Investment screening.

140 C3.3R4

Design and

establish a

National

Promotional

Agency

Milestone Approval by

the Council of

Ministers of the

roadmap for the

creation and

establishment

of a National

Promotional

Agency

Publication of the

Council of

Ministers’ decision

- - - Q2 2023 Approval by the Council of Ministers of

the roadmap for the creation and

establishment of a National Promotional

Agency which shall facilitate access to

loans and guarantees to Small and Medium

Enterprises and enhance the absorption

capacity of EU financing through EU

tools.

141 C3.3R4

National

Promotional

Agency

Milestone Cyprus

National

Promotional

Agency

Appointment of the

Board of Directors

Q3 2025 Appointment of the Board of Directors of

the National Promotional Agency

published in the Official Gazette of the

Republic of Cyprus.

142a C3.3R8

The Provision

of

Crowdfunding

Services for

Business Law

Milestone Entry into force

of legal act(s)

on the

Provision of

Crowdfunding

Services for

Business Law

Provision in the law

indicating the entry

into force of legal

act(s)

- - - Q4 2024 Entry into force of the legal act(s) on the

Provision of Crowdfunding Services for

Business.

143 C3.3R6

Incentives to

promote

mergers and

acquisitions.

Milestone Action Plan for

incentives for

mergers and

acquisitions

Council of

Ministers adoption

of a report and the

accompanying

action plan

- - - Q4 2022 Approval of a report and an accompanying

action plan by the Council of Ministers on

specific incentives for promoting mergers

and acquisitions, following the evaluation

of similar regimes within the EU and

consultation with stakeholders.

144 C3.3I2

A Regulatory

Sandbox

Milestone Regulatory

Sandbox

Regulatory

Sandbox is

accessible.

- - - Q2 2024 A Regulatory Sandbox is accessible.

147 C3.3I4

Scheme for the

digital upgrade

of enterprises

Milestone Publication of

call for

proposals

following

approval of the

scheme by the

Official

announcement of

the call for

proposals in the

press, the

MECI/ITS website

- - - Q2 2023 Publication of call for proposals for grants

covering a percentage of expenditure that

shall enhance the digital identity of the

businesses or shall increase the amount of

small and medium-size enterprises that use

information and communication

technologies (including the e-commerce

47

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

Council of

Ministers

and MECI/ITS

social media

sector), or shall promote digital

entrepreneurship, following approval of

the scheme for the digital upgrade of

enterprises by the Council of Ministers.

148 C3.3I4

Scheme for the

digital upgrade

of enterprises

Target Grant

agreements

signed

- Number 0 290 Q2 2026 Signature of grant agreements with at least

290 enterprises.

151 C3.3I6

State funded

equity fund

Milestone Setup of the

Fund

Registration of the

Fund

- - - Q4 2022 The setup of the Fund is completed. The

Fund shall increase the availability of

alternative financing sources, particularly

for innovative companies and start-ups.

The investment policy shall include

eligibility criteria for investees to ensure

compliance with the ‘Do no significant

harm’ Technical Guidance (2021/C58/01)

of supported transactions under this

measure through the use of sustainability

proofing, the requirement of compliance

with the relevant EU and national

environmental legislation, and the

requirement for beneficiaries that derived

more than 50% of their revenues during

the preceding financial year from activities

or assets in the exclusion list to adopt and

publish green transition plans.

152 C3.3I6

State funded

equity fund

Target Investees

supported

through the

Fund

Number 0 7 Q2 2026 At least 7 investees supported through

equity financing by the Fund.

153 C3.3I1

Integrated

Information

system for the

Department of

Registrar of

Companies and

Intellectual

Property

Milestone System

hardware,

software, and

networking

installation

Certificate of

receipt and

acceptance issued

- - - Q1 2024 Installation of system hardware, software,

and networking.

154 C3.3I1 Milestone Training

courses

Training courses

given

Q4 2025 Training courses given on the information

system of the services which may include,

48

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

Information

system for the

Department of

Registrar of

Companies and

Intellectual

Property

but it is not limited to HE1-Registration of

Company, HE4-Change of official

particulars and HE57-Transfer of shares

of the Companies section of the

Department of Registrar of Companies

and Intellectual Property.

49

H. COMPONENT 3.4: MODERNISING 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 Country-

Specific Recommendations on improving efficiency in the public sector, in particular as

regards the functioning of the public administration and of local governments (Country-

Specific 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 (Country-

Specific Recommendation 5 of 2019).

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): Support the functioning of public administration.

The objective of this reform is to support the human resource management within thegeneral

public administration and the administrative capacity of the Cyprus Police. This measure

consists in (i) the adoption of measures on human resource management of the public

administration; and (ii) the reorganisation and modernisation of the Cyprus Police by designing

and implementing a new model of policing and operations.

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

The objective of this reform is to allow for the use of flexible working arrangements.

This measure consists in the entry into force of legal act(s) on flexible working arrangements

in the public sector.

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

50

The objective of this reform is to support the functioning of the public service.

This measure consists in the entry into force of legal act(s) on the recruitment, evaluation and

promotion of civil servants.

Reform 4 (C3.4R4): Digitalisation of public procurement

The objective of this reform is to introduce new procurement processes using digital tools.

This measure consists in an online and accessible e-procurement system.

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 the processes and procedures of the Law Office by

introducing an IT system (eLaw System). During the implementation of the project, a business

analysis shall assess needs for process re-engineering.

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

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

The objective of this investment is to increase the use of quantitative modelling techniques for

policy impact assessment.

This measure consists in the approval by the Council of the Economics Research Centre of a

report of the director of the Economics Research Centre on developed impact assessment

models and tools.

Subcomponent 3.4.2: Local Administration and Spatial reform

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

The objective of this reform is to support the decision-making power, administrative autonomy,

and efficiency of local authorities in Cyprus.

This measure consists in the entry into force of legal act(s) on the organisation of local

authorities in Cyprus and training.

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

The objective of this reform is to reduce the pressure for municipalities’ expansion and increase

soil seal.

51

This measure consists in (i) for the entry into force of a law on urban land consolidation and

(ii) the publication of pilot urban land consolidation plans online.

Investment 4 (C3.4I4): E-system for issuing building permits

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

This measure consists in (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) additional services in the Hippodamos system.

Investment 5 (C3.4I5): Smart cities

The objective of this investment is to coordinate on-going smart cities initiatives.

This measure consists of a smart cities platform and mobile applications.

Investment 6a (C3.4I6a): Regeneration and Revitalisation of Nicosia Inner City

The objective of this investment is to revitalise the Nicosia inner city.

This measure consists in renovating rooms in Nicosia.

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

This measure consists in the reduction of the backlog of cases and appeals.

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

The objective of this reform is to digitalise the justice system.

This measure consists in the pilot stage of phase one of the i-justice system.

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

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

judges.

This measure consists in training of judges on the revised Civil Procedure Rules and other

judicial skills.

52

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.

53

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

155 C3.4R1

Enhance the

administrative

capacity and

improve the

functioning of

public

administration

for better policy

making and

implementation

Milestone Action Plan

on the

efficient

management

of human

resource

issues in the

national

public

administration

Adoption of the

Action Plan by

the Council of

Ministers

- - - Q1 2022 The Council of Ministers has adopted

an Action Plan that shall include:

- Guidelines, templates and

implementation support by the Public

Administration and Personnel

Department (PAPD) to line ministries’

administration in relation to human

resource management issues such as re-

organisation and re-structuring,

simplification of procedures and

workforce planning.

- Implementation of a revised

organisational structure of PAPD

- Learning and Development Plan for

PAPD staff.

- Training Plan for line ministries’

administration

156 C3.4R1

Enhance the

administrative

capacity and

improve the

functioning of

public

administration

for better policy

making and

implementation

Milestone New human

resources

management

framework for

Cyprus Police

Adoption by the

Chief of Police

- - - Q4 2023 The new human resources management

framework for Cyprus Police shall

cover following areas:

- Analysis and creation of job

descriptions

- Recruitment

- Motivation

- Training and Development

- Compensation and Benefits

- Labour and employee relations and

communication

- Management of retired members

- Safety and Health

- Human resource management strategy

157 C3.4R1

Support the

functioning of

public

administration

Milestone Guidelines

and manuals,

legal act(s),

and trainings

on

management

of human

Guidelines and

manuals publicly

online. Provision

in the legal act(s)

indicating their

entry into force.

- - - Q4 2025 Guidelines and manuals on human

resource management of public

administration shall be publicly

available online.

Legal act(s) on disciplinary matters in

the public administration shall enter

into force.

54

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

resources in

the public

administration

Trainings

provided.

Trainings shall be provided to staff on

human resource management of the

public administration.

158 C3.4R2

Regulate flexible

working

arrangements in

the public sector

Milestone Decision on

flexible

working

arrangements

in the public

sector

Decision by the

Council of

Ministers

- Q1 2023 A study regarding flexible working

arrangements in the public sector shall

be conducted. The PAPD shall assess

the study’s recommendations

considering appropriate safeguards

aiming at improving the effectiveness

of the public service. Following the

assessment of the study’s

recommendations, a decision regarding

their implementation shall be taken by

the Council of Ministers.

159 C3.4R2

Regulate flexible

working

arrangements in

the public sector

Milestone Flexible

working

arrangements

Provision in the

legal act(s)

indicating their

entry into force

- - - Q4 2024 Entry into force of legal act(s) on

flexible working arrangements in the

public sector.

160 C3.4R3

Introduce new

framework for

evaluation and

selection process

for filling public

service

vacancies and

new regulations

for the

evaluation of

employees’

performance

Milestone Entry into

force of

legislation for

the evaluation

and selection

process for

public service

vacancies and

regulations for

employees’

performance

evaluation.

Provision in the

relevant law(s)

and regulations

indicating their

respective entry

into force

- - - Q4 2021 The main elements shall be:

(i) entry into force of a law providing

for the evaluation and selection of

candidates to fill the public service

promotion posts, including managerial

posts, with new criteria and methods

based on objective assessment and

merit, and amendment of the Public

Service Law where deemed necessary,

and

(ii) entry into force of new regulations

for implementing a new performance

appraisal system for public employees,

to be used for development and

promotion purposes in order to make

the performance appraisal procedure

and the promotion mechanism more

transparent, fair, skill-based and

effective

55

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

162 C3.4R4

Digitalisation of

public

procurement

Milestone E-

procurement

system

E-procurement

system accessible

- - - Q4 2025 The e-procurement system shall be

online and accessible, with the

following functionalities:

- statistical reporting

- e-shopping through a digital

catalogue.

163 C3.4R5

Enhancement of

the capacity of

the Law Office

Milestone New IT

system for the

Law Office

Entry into service

of the new IT

system

- - - Q4 2023 The e- Law system is made operational

for the Law Office and used. It includes

the following functionalities:

- creation of electronic case files and

folders,

- case management and monitoring,

- internal communication and work

flows,

- tracking of cases, financial

management and payments,

- digitalisation of paper files. Training

of users has been concluded.

The paper files of the Law Office are

digitalised.

167 C3.4I3

Economic Policy

Modelling Hub

Milestone Setting up a

Modelling

Hub for

Economic

Policy

Analysis

Entry into service

of the Hub

- - - Q4 2023 Operationalisation and equipment of

the Hub including appointment of the

team of scientific staff. The team shall

consist of experts on macroeconometric

models, econometricians, data

analytics experts and economists.

168 C3.4I3

Economic Policy

Modelling Hub

Milestone Report of the

director of the

Economics

Research

Centre

Report of the

director of the

Economics

Research Centre

approved by the

members of the

Economics

Research Centre

Council

Q4 2025 Approval of a report of the director of

the Economics Research Centre by the

members of the Economics Research

Centre Council.

169 C3.4R6

New legal

framework for

Local

Authorities and

Milestone New legal

framework on

local

authorities

Provision in the

law indicating the

entry into force of

legal act(s)

- - Q2 2024 Entry into force of legal act(s)

entailing:

- Reduction in the number of

municipalities

56

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

support

measures

Establishment of community clusters

- New framework for financing of

municipalities

170 C3.4R6

New legal

framework for

Local

Authorities and

support

measures

Milestone Trainings Trainings have

taken place for

local authorities

Q4 2024 Trainings have taken place for local

authorities.

171 C3.4R7

Urban land

consolidation

Milestone Entry into

force of a law

on urban land

consolidation

Provision in the

law indicating the

entry into force of

the law

- - Q2 2024 Entry into force of the law on urban

land consolidation.

172 C3.4R7

Urban land

consolidation

Target Number of

plans for

urban land

consolidation

- Number 0 10 Q4 2025 Pilot plans for urban land consolidation

have been published online

173 C3.4I4

Enhancing e-

system for

issuing building

permits

Milestone Enhancement

of the e-

application

environment

of the

Hippodamos

System

Applications

being received

through the

enhanced e-

application

environment

- - - Q4 2022 Completion of the enhancement of the

e-application environment of the

existing Hippodamos system to enable

the submission of applications for

planning and building permits for all

planning authorities and building

authorities (municipalities) from a

common platform.

174 C3.4I4

E-system for

issuing building

permits

Milestone Planning and

control tool,

project

management

tool, software

and hardware

of

Hippodamos

Services of the

Hippodamos

System

- - - Q4 2024 The Hippodamos System shall include

services which may include but are not

limited to the following:

- Electronic signature of

documents

- Electronic Consultation.

Acceptance certificate(s) have been

issued for the delivery of hardware

consisting of at least two servers as

specified in the contract.

176 C3.4I5

Smart cities

Target Mobile

applications

- Mobile

Applications

Number

Mobile

Applications:

0

Mobile

Applications:3

Q2 2026 Acceptance certificates for the three

mobile applications (one application

for the citizens for parking, one for

57

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

and smart

sensors/

solutions

Smart sensors/

Solutions

delivered/

installed:

Number

Smart sensors/

solutions

connected:

Number

Smart sensors/

Solutions

delivered/

installed: 0

Smart sensors/

solutions

connected:0

Smart sensors/

Solutions

delivered/

installed:

52 700

Smart sensors/

solutions

connected:

45 000

parking enforcement officers, and one

for waste collectors). The applications

shall be downloadable as production

ready application files from a website.

52 700 smart sensors or solutions are

delivered or installed to municipalities

or the Deputy Ministry of Research

Innovation and Digital Policy. 45 000

of these smart sensors or solutions shall

be connected to the smart cities’

platform.

178 C3.4I6a

Regeneration

and

Revitalisation of

Nicosia Inner

City

Target Renovation of

rooms in

Nicosia.

- Number 0 286 Q2 2026 Taking-over reports issued by the

Supervising Engineer or Architect for

the private sector incentives scheme /

taking-over certificates issued by the

Supervising Engineer of the contracting

Authority (Nicosia Municipality),

certifying that renovation works have

been carried out for at least 286 rooms

in Nicosia.

180 C3.4R8

Efficiency of

Justice

Milestone Entry into

force of new

Rules of Civil

Procedure

Provision in new

Rules of Civil

Procedure

(published in the

Official Gazette)

indicating the

entry into force of

the Rules of

procedures

(1 September

2023)

- - - Q3 2023 Entry into force of the new Rules of

Civil Procedure for the new cases

submitted to the court as from 1

September 2023. The new Rules of

Civil Procedure shall modernise the

hearing of cases in order to deliver a

less costly, more accessible, and

timelier service to parties.

181 C3.4R8

Efficiency of

Justice

Target Reducing the

backlog of

cases and

appeals

- % (Percentage) 0 40 Q2 2024 Reduction of the backlog of cases and

appeals pending for over two years

before the District Courts and the

Supreme Court by 40% from the 31

December 2020 level of 16 740

pending civil cases and 2 139 pending

civil and administrative appeals, as

verified by an Annual Progress Report

of the Action Plan to reduce backlog.

58

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

183 C3.4R9

Digital

transformation

of courts

Milestone i-justice

system

Temporary

acceptance

certificate and

Phase One (Pilot

Stage) of the i-

justice system

accessible through

the court’s

website

- - - Q2 2026 Issuance of the temporary acceptance

certificate of Phase One of i-Justice

System and commencement of Pilot

Stage of Phase One of i-Justice System,

which is accessible through the court’s

website. It shall introduce

functionalities, for example: digital

case filing and payment, case

categorisation, case searching,

document production and management,

tracking and monitoring system(s) for

cases, managing allocations of cases to

hearing, execution and management of

judgements, case closing and evidence

management. 185 C3.4I7

Training of

judges

Milestone Training of

judges

Trainings

organised

Q4 2025 Trainings for judges shall be organised

on the revised Civil Procedure Rules

and other judicial skills.

186 C3.4I8

Upgrading the

infrastructure of

courts

Milestone Extension of

the Famagusta

District Court

Project

management team

certifies the

completion of the

construction.

- - - Q4 2021 Completion of construction of the

extension to the Famagusta District

Court building to support the operation

of new courtrooms to try in addition to

criminal also civil cases.

187 C3.4R10

Improving the

legal and

institutional

framework for

fighting

corruption

Milestone Entry into

force of the

law

establishing

the

Independent

Authority

against

Corruption

Provision of the

law indicating the

entry into force of

the law and start

of operation of the

Independent

Authority against

Corruption with

key management

positions filled

and staff

recruited.

- - - Q1 2022 The Independent Authority against

Corruption has been established on the

basis of the entry into force of the

corresponding law and is operational.

The Authority 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.

188 C3.4R10

Improving the

legal and

institutional

framework for

Milestone Entry into

force of the

law on

Transparency

in Decision-

Provision of the

law indicating the

entry into force of

the law

- - - Q4 2021 Entry into force of the law on

Transparency in Decision-Making and

Related Matters, including provisions

to prevent conflict of interest. The law

shall create the obligation to publicise

59

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative

timeline for

completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

fighting

corruption

Making and

Related

Matters

contacts made between persons

interested in being involved in public

decision-making procedures and

officials or members of the State

service or of the wider public sector or

with employees for the benefit of

officials who, by their very position,

have competence or possibility of

initiating such procedures or

formulating their content or

contributing or determining the final

outcome of such procedures.

Information on such a contact, as well

as its content and purposes, shall be

officially recorded and be publicly

available.

189 C3.4R10

Improving the

legal and

institutional

framework for

fighting

corruption

Milestone Entry into

force of the

law to protect

whistle-

blowers

Provision of the

law indicating the

entry into force of

the law

- - - Q4 2021 Entry into force of a law to protect

whistle-blowers reporting fraud and

corruption from internal sanctions. The

law shall include supplementary

provisions on the protection of persons

reporting acts of corruption both in the

public and the private sectors (whistle-

blowers, persons not involved in the

acts), further to the protection already

provided for in the Protection of

Witnesses Law 95(I)/2001. The law

shall also provide measures of leniency

for those who are involved in acts of

corruption but voluntarily report to the

police and/or offer cooperation with the

authorities resulting in the full

investigation and prosecution of the

case.

60

I. COMPONENT 3.5: SAFEGUARDING FISCAL AND FINANCIAL STABILITY

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 for the 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).

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

Safeguarding financial stability

Reform 11 (C3.5R11): Legal framework for a National Sanctions Implementation Unit

The objective of this reform is to reinforce oversight in the banking and non-banking financial sectors.

The reform consists of the entry into force of legal act(s) on establishing the legal framework for a

National Sanctions Implementation Unit.

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 by 30 June 2023 and approved by the Council of Ministers, tracking

the reduction of non-performing loans in the banking sector towards the indicative reference values of

6% gross and 3% net non-performing loans ratio and proposing policy measures where appropriate.

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

61

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 of pending cases for the issuance of title deeds or rejection

of the 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 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): Digital system for the exchange of data and the provision of credit scoring services

The objective of this reform is to fight high private indebtedness.

This measure consists in (i) the entry into force of legal act(s) on the ARTEMIS data exchange

mechanism and (ii) the ARTEMIS data exchange mechanism in User Acceptance Testing phase.

Reform 5 (C3.5R5): Framework for Management of Private Debt

The objective of this reform is to prevent and manage the stock of private debt.

The measure consists of (a) an Action Plan on liabilities monitoring (LMR) and (b) the entry into force

of legal act(s) for the management of private debt.

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

The objective of this reform is to reinforce the insolvency framework, and the functioning of the

Department of Insolvency.

This measure consists in (i) adopting the legal and institutional framework for insolvency and (ii)

accessible digital systems of the Department of Insolvency.

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.

62

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 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 this reform is to enhance the supervision of the insurance and pension funds.

This measure consists in (i) the employment of additional permanent employees of the supervisory

authorities, (ii) preparing and implementing tools and actions in line with the regulatory frameworks.

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)and the Securities

Financing Transactions Regulation (SFTR). 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): Digitalising tax collection

The objective of this reform is to make tax collection more efficient.

This measure consists in an IT system as a single point for taxpayer services.

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

The objective of this reform is to combat tax evasion and aggressive tax planning by Multinational

Enterprises.

This measure consists in the entry into force of legal act(s) to address aggressive tax planning.

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

63

The objective of this investment is to simplify customs formalities and reduce the administrative cost for

stakeholders.

This measure consists in information systems or functionalities, for which acceptance certificates have

been issued.

64

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

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

191a C3.5R11

Legal framework

for a National

Sanctions

Implementation

Unit

Milestone Legal framework

for a National

Sanctions

Implementation

Unit

Entry into

force of the

legal act(s)

Q4 2025 Entry into force of legal act(s) establishing

the legal framework for a National

Sanctions Implementation Unit.

192 C3.5R2 Framework

and Action Plan for

addressing NPLs

Milestone Entry into force

of the package of

amending laws

regarding credit

acquiring

companies

(CAC) and

credit servicers

to improve the

working

environment for

non-performing

loans

management

Provision in

the law

indicating the

entry into

force of the

respective

laws

- - - Q4 2021 Entry into force of the following three

laws:

(a) The Credit Facilities Purchase and

Related Matters (Amending) Law of 2021,

which shall put non-performing loan

servicers under regulation and supervision

by the Central Bank;

(b) The Immovable Property (Transfer,

Registration and Valuation) (Amending)

Law of 2021, which shall give access for

non-performing loan servicers and credit

acquiring companies to the Land Registry

(c) Evidence (Amending) Law 2020,

which shall align notification

requirements in case of purchase of a loan

by a credit acquiring company.

193 C3.5R3

Strategy for

addressing

inadequacies of the

property

transaction system

(title deeds)

Target Reduction of

backlog of cases

for issuance of

title deed either

by issuing title

deeds or by

rejecting the

case

- % (Percentage) 0 80 Q2 2023 Reduction of backlog of pending cases for

issuance of title deeds either by issuing

title deeds (the legal document

constituting the evidence of a right to the

ownership of a property) or by rejecting

the case. Title deeds for 1 050

developments are pending for assessment,

corresponding to 20 000 title deeds. Of

this total of 20 000 pending title deeds,

80% shall be resolved resulting either to

the issuance of title deeds or to a rejection

of the case.

65

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

194 C3.5R3

Strategy for

addressing

inadequacies of the

property

transaction system

(title deeds)

Milestone Extension of the

New Planning

and Building

Permit Policy

Decree issued

by the Minister

of Interior

- - - Q4 2022 Extension of the New Planning and

Building Permit Policy for up to four

residential units in residential plots. The

Policy provides the possibility to submit

applications electronically and introduces

fixed deadlines to grant planning and

building permits (ten to twenty days).

195 C3.5R3

Strategy for

addressing

inadequacies of the

property

transaction system

(title deeds)

Milestone Entry into force

of the

amendment of

the Sale of

Property

(Specific

Performance)

Law

Provision in

the law

indicating the

entry into

force of the

amended Sale

of Property

(Specific

Performance)

Law

- - - Q4 2022 Entry into force of the amended Sale of

Property (Specific Performance) Law to

safeguard the buyers interests in advance.

The amendment shall allow for transfer of

Title Deeds, under full safety and legal

certainty, while minimizing operational

costs and delays through checks at a

preliminary stage to identify specific

obstacles to the transfer before the

payment of the purchase price. The aim is

to create a mechanism to safeguard the

interests of the buyers of immovable

property and ensure in advance that the

transfer of immovable property shall be

executed as soon as the buyer fulfils

his/her contractual obligations.

196 C3.5R3

Strategy for

addressing

inadequacies of the

property

transaction system

(title deeds)

Milestone Review of the

Streets and

Building Law

Provision in

the law

indicating the

entry into

force of the

amended

Streets and

Building Law

- - - Q4 2023 Entry into force of the Streets and Building

Law which shall introduce the right

incentives for the supervising engineer to

(i) oversee the project development in

accordance with the permit issued, to

further discourage irregularities that would

result in title deeds not being issued and

(ii) submit to the competent authority a

certificate confirming the completion of

work in line with the permit issued.

197 C3.5R4

New legal

framework and

system of exchange

of data and credit

bureau

Milestone Entry into force

of the

framework and

system of

exchange of data

legislation

Provision in

the legislation

indicating the

entry into

force of the

legislation

- - - Q1 2023 Entry into force of the legislation on the

framework and system of exchange of data

by ARTEMIS credit bureau, which shall

eliminate impediments in the current

framework so as to allow it to provide

credit scoring services. The main elements

of the amendment shall be to broaden the

66

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

supervisory role of the Central Bank of

Cyprus, to maintain a duty to collect data

for credit facilities by credit institutions

and other creditors, to provide Insolvency

Department data, and to define the terms

and conditions of access to data and its

protection.

198 C3.5R4

Digital system for

the exchange of

data and the

provision of credit

scoring services

Milestone Entry into force

of legal act(s) on

the ARTEMIS

data exchange

mechanism and

ARTEMIS data

exchange

mechanism

providing credit

scoring services

in User

Acceptance

Testing phase

Entry into

force of legal

act(s); digital

system in User

Acceptance

Testing phase

- - - Q4 2024 Entry into force of legal act(s), which

shall:

I. Include credit scoring services

II. Specify the data to be submitted

and the procedure for submitting

data to the ARTEMIS data

exchange mechanism

III. Mandate the production of

credit scoring.

Furthermore, the ARTEMIS data

exchange mechanism in User Acceptance

Testing (UAT) phase shall demonstrate

the capacity to provide credit scoring

services.

199 C3.5R5

Action plan for the

development of a

liability monitoring

register

Milestone Action Plan for

the development

of a liability

monitoring

register

Approval of

the Action

Plan by the

Council of

Ministers

- - - Q4 2022 The Action Plan shall put forward the

necessary steps for introducing the

liability monitor register that shall:

- utilise an electronic database, collecting

data on liabilities from various public and

private creditors, such as the credit registry

under reform C3.5R4.

- enable the design and implementation of

targeted policies for preventing and

managing private indebtedness.

200 C3.5R5

Framework for

Management of

Private Debt

Milestone Entry into force

of legal act(s) for

the management

of private debt.

Entry into

force of the

legal act(s)

Q4 2024 Entry into force of legal act(s) for the

management of private debt.

201 C3.5R6

Reinforcing and

strengthening the

Milestone Full

implementation

and full

Appointment

of staff

confirmed by

- - - Q4 2022 Full implementation and full operation of

the legal and institutional framework on

insolvency through: (a) appointment of

67

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

insolvency

framework

operation of the

legal and

institutional

framework for

insolvency

the Official

Gazette.

Council of

Ministers’

approval of the

Progress

Report

staff for all levels of the organisational

structure of the Department of Insolvency,

and delivery of trainings for the personnel,

(b) establishment of a communication plan

for promoting insolvency proceedings, (c)

approval of a customer service line, (d)

establishment of a framework for

continuous professional development for

insolvency Practitioners.

202 C3.5R6

Reinforcing the

insolvency

framework

Milestone Digital systems

of the

Department of

Insolvency

accessible

Digital system

accessible

- - - Q2 2025 The digital systems of the Department of

Insolvency shall be accessible.

203 C3.5R7

Strategy for

Combating

Financial Illiteracy

Milestone Strategy for

Combating

Financial

Illiteracy

Approval of

the Strategy

for Combating

Financial

Illiteracy by

the Council of

Ministers

- - - Q4 2023 The Strategy for Combating Financial

Illiteracy shall outline its goal and

objectives, specify the channels for

promoting financial literacy, and include

specific actions for implementation. The

reform shall also include completion of

initiatives promoting financial literacy.

204 C3.5R8 Enhancing

supervision of

Insurance and

Pension Funds

Target Employment of

additional

permanent

employees of the

Registrar of

Occupational

Retirement

Benefits Fund

(RORBF) and

the Insurance

Companies

Control Service

(ICCS)

- Number 0 16 Q2 2026 Employment (placing or seconding or

transferring) of thirteen additional

permanent employees for the Registrar of

Occupational Retirement Benefit Funds

(RORBF) and three additional permanent

employees for the Insurance Companies

Control Service (ICCS).

205 C3.5R8 Enhancing

supervision of

Insurance and

Pension Funds

Milestone Supervisory

tools including

data collection

and analysis tool

Support tools

for enhancing

the supervision

of pension

funds and

- - - Q4 2023 Implementation of tools (for example,

procedures, checklists, fitness and

propriety applications) in line with new

legislation (providing for the

establishment, activities and supervision

of Institutions for Occupational

68

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

insurance

companies

Retirement Benefits Law of 2020 -L

10(I)/2020 and the legislation of the

Insurance and Reinsurance Business and

Other Related Issues Law of 2016

(Ν.38(Ι)/2016.

206 C3.5I1

Enhancement of

the Supervisory

Function of the

Cyprus Securities

and Exchange

Commission

Milestone Digital system

for supervision

of transactions

for the Cyprus

Securities and

Exchange

Commission

Project

management

committee

verifies

acceptance of

deliverables in

due time; and

quality and

standards as

specified in

tender

documents

- - - Q4 2023 Implementation of a new digital system of

supervision of transactions. The new

digital system shall have the following

features:

- Loading and pre-processing of

Transaction data.

- Aggregations and queries on data to

generate regulatory insights.

- Generation of on-schedule and ad-hoc

reports.

207a C3.5R9 Improving

tax collection and

effectiveness of the

Tax Department

Milestone Operation of

VAT Services

within an

Integrated Tax

Administration

System (ITAS)

Project Board

Approval of

the Project

Deliverables

for

completion,

installation,

and operation

of a new

integrated

VAT System

- - - Q1 2022 The Cyprus Tax Department (CTD) shall

put into operation an Integrated Tax

Administration System (ITAS) that shall

support the tax administration

functionalities and processes. The

functionalities related to the VAT Services

shall be completed and operational within

this system.

207b C3.5R9 Improving

tax collection and

effectiveness of the

Tax Department

Milestone Purchase of the

new building for

the integrated

Nicosia District

Office and Large

Taxpayers’

Office

Completion of

the purchase

and start of

operations

Q3 2023 The new building for the integrated

Nicosia District Office and Large

Taxpayers’ Office has been purchased.

208 C3.5R9

Digitalising tax

collection

Milestone Direct tax

administration

services of the

Tax department

within the ITAS

Direct Taxes

are ready to be

put into

productive

operation

- - - Q1 2026

The Tax administration services for the

following Direct Taxes are ready to be put

into productive operation within ITAS and

have been approved by the board:

69

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

within ITAS

and have been

approved by

the board

- Income Tax withheld at source

by employers (PAYE),

- Defence Tax

- Submission Services for the

Summary Information Table for

Controlled Transactions

Together with the following horizontal

functionalities:

- Online Registration to the Tax

Registry of the Department

- Tax Audit Operation Services,

- Objections Services,

- Cy Login Authentication

Functionality,

- Appeals Services.

209 C3.5R10

Addressing

Aggressive Tax

Planning

Milestone Entry into force

of the law to

tackle aggressive

tax planning

Provision in

the law

indicating the

entry into

force of the

law

- - - Q4 2022 Entry into force of a law to tackle

aggressive tax planning by (a) imposing a

withholding tax on interest, dividends and

royalty payments to jurisdictions included

in Annex I of the Council conclusions on

the revised EU list of non-cooperative

jurisdictions for tax purposes and (b)

introduction of a further corporate tax

residency test based on the incorporation

of each entity.

210 C3.5R10

Addressing

Aggressive Tax

Planning

Milestone Entry into force

of legal act(s) to

tackle aggressive

tax planning

Entry into

force of legal

act(s)

- - - Q4 2024 Entry into force of legal act(s) to introduce

withholding tax on dividend payments to

low tax jurisdictions and applying non-

deductibility on interest and royalty

payments to low tax jurisdictions.

211 C3.5R10

Addressing

Aggressive Tax

Planning

Milestone Entry into force

of legal act(s)

addressing

aggressive tax

planning

Entry into

force of legal

act(s)

- - - Q2 2026 A study shall assess the tax framework

with respect to measures related to

aggressive tax planning. Legal act(s)

addressing aggressive tax planning based

on the findings of this study shall enter into

force.

70

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for

milestones)

Quantitative indicators

(for targets)

Indicative timeline for

completion

Description of each milestone and

target Unit of measure Baseline Goal Quarter Year

212 C3.5I2

Modernisation of

Customs and

Electronic Payment

System

Target Putting into

operation the

information

systems–

envisaged under

the Union

Customs Code

(UCC)

- Number 0 2 Q4 2023 At least two of the following import-

related information systems have been

completed, installed, and put into

operation:

1. Automated Export System

2. New Computerised Transit System

3. EU Single Window

4. Union Customs Code

5. Guarantee Management

6. Union Customs Code

7. SURVEILLANCE 3

8. Union Customs Code - Import Control

System 2

9. Import Applications under the Union

Customs Code

10. Customs Union Performance –

Management Information System

11. Union Customs Code Proof of Union

Status

12. Uniform User Management and

Digital Signature

213 C3.5I2

Modernisation of

Customs and

Electronic Payment

System

Target Information

systems or

functionalities

- Number 2 11 Q4 2025 Acceptance Certificates shall be issued on

the following:

1. New Computerised Transit System

2. EU Single Window

3. Automated Import System (AIS)

4. The Union Customs Code – Special

Procedures for Import and Export

5. SURVEILLANCE 3

6. Centralized Clearance for Import

Applications under the Union

Customs Code

7. Customs Union Performance –

Management Information System

8. Union Customs Code Proof of Union

Status

9. The Uniform User Management and

Digital Signature system

71

72

J. COMPONENT 4.1: Upgrade infrastructure for connectivity

This component of the Cypriot recovery and resilience plan contributes 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 Country-Specific

Recommendation 3 of 2020).

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 this reform is to facilitate broadband connectivity in Cyprus.

This measure consists in enabling the Office of the Commissioner of Electronic Communications and

Postal Regulation (OCECPR) to collect and publish geographical data on electronic communication

networks.

Reform 2 (C4.1R2): Simplification of the administrative procedures for the deployment of VHCN

The objective of this reform is to facilitate the build-up of Very High Capacity Networks (VHCN)

infrastructure.

The reform consists in the entry into force of administrative acts for the deployment of very high capacity

networks.

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

The objective of this investment is to expand VHCN, addressing territorial disparities of broadband

availability.

This measure consists in supporting investment in VHCN in areas of no interest to private investors.

Investment 2 (C4.1I2): Upgrade internet connection to be “Gigabit-ready” and support connectivity take-

up

The objective of this investment is to encourage the widespread take-up of VHCN.

This measure consists in vouchers for higher capacity internet connections.

73

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

214 C4.1R1

Empower the

National

Regulatory

Authority

(OCECPR)

Milestone Launch of the

geographical

survey and entry

into force of

secondary

legislation

Entry into force

of the secondary

legislation and

launch of the

survey

- - - Q1 2022 The secondary legislation shall enter into force and

cover the main aspects related to the survey such as the

type, the degree of analysis and the form of the

required information, as well as the persons from

whom the required information is requested.

Launch of the geographical survey of the reach of

electronic networks capable of delivering broadband

networks and physical infrastructures based on Article

22 of the European Electronic Communications Code.

215 C4.1R1

Empower the

National

Regulatory

Authority

(OCECPR)

Milestone Web portal on

broadband and

infrastructure

mapping

The web portal

is accessible

- - - Q4 2024 The web portal on broadband and infrastructure

mapping is accessible.

216 C4.1R2

Simplification

of the

administrative

procedures for

the

deployment of

VHCN

Milestone Entry into force

of the

administrative

acts for very

high capacity

networks’

deployment

Provision in the

administrative

acts indicating

the entry into

force of the

respective acts

- - - Q2 2024 Entry into force of administrative acts for the reduction

of administrative barriers for the deployment of very

high capacity networks, which may include, but not be

limited to, acts facilitating permit granting procedures

or access to physical infrastructure.

217 C4.1I1

Expansion of

very high

capacity

Networks in

underserved

areas

Milestone Start of very

high capacity

networks’

deployment in

underserved

areas

Signed contracts

with contractors

to deploy very

high capacity

networks in

areas of no

interest to

private very

high capacity

network

investors

- - - Q4 2023 Contracts have been signed with contractors, which

shall have been selected through an open tender

procedure, to deploy very high capacity networks (in

particular, fixed or mobile (5G) networks offering a

download speed of at least 100Mbps, which shall be

readily upgradable to Gigabit for fixed access) in areas

of no interest to private very high capacity network

investors.

219 C4.1I1

Expansion of

very high

capacity

Networks in

Milestone Very high

capacity

networks are

accessible in

areas of no

Three

acceptance

certificates (one

per lot) issued

by the

0 Q4 2025 At least three areas (lots) as defined in contracts under

milestone 217 are covered by very high capacity

networks.

74

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

underserved

areas

interest to

private investors

contracting

authority

220 C4.1I2

Upgrade

internet

connection to

be “Gigabit-

ready” and

promote

connectivity

take-up

Target Expansion of

Gigabit-ready

internet

connection take-

up by

households

- Number 0 24 300 Q2 2023 Internet connection has been upgraded to be able to

support provision of Gigabit connectivity in at least

24 300 homes.

221 C4.1I2

Upgrade

internet

connection to

be “Gigabit-

ready” and

support

connectivity

take-up

Target Gigabit-ready

internet

connection take-

up by at least

82 000

households

- Number 24 300 82 000 Q2 2025 Internet connection has been upgraded to be able to

support provision of gigabit connectivity in at least

82 000 households.

75

K. COMPONENT 4.2: PROMOTE E-GOVERNMENT

This component of the Cypriot recovery and resilience plan contributes 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 Country-Specific

Recommendation 3 of 2020).

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

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

The objective of this reform is to facilitate the interaction with public services.

This measure consist in designing a Service Delivery Model for the provision of digital services to the

public.

Reform 2 (C4.2R2): New cloud policy with regard to government IT systems and services and

infrastructure set-up

The objective of this measure is to elaborate the cloud policy of the government.

This measure consists in two data centres providing hosting services to government IT systems, and the

adoption of a national cloud policy.

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

The objective of this reform is to digitalise procedures for the Cyprus Police.

This measure consists in a platform (Digipol) of demands for police procedures and services.

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 aims to improve corporate trust and

transparency in Cyprus and shall make 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 the

necessary functionalities to support the maintenance of the register and management of relevant

76

information (for example by sending out notifications for updating, enforcement of late filing fees, search

facilities with prescribed levels of access). This aims 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 of central government ministries or departments

The objective of this investment is to digitalise workflows in a number of central government ministries

or departments.

This measure consist in digitalisation projects in five central government ministries or departments.

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

The objective of this investment is to support digital infrastructure and processes of the Cyprus Ports

Authority (CPA).

The measure consist in investing in information technology equipment and systems for CPA.

77

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

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion

(indicate the quarter

and the year) Description and clear definition of each

milestone and target

Unit of

measure Baseline Goal Quarter Year

224 C4.2R1

Digital Services

Factory

Milestone Definition of the

Service Delivery

Model for the

Digital Services

Factory

Appointment

decision of the

Deputy Minister

of Research,

Innovation and

Digital Policy

establishing the

team; publication

of the standards

on the website of

the Deputy

Ministry

- - - Q4 2022 The Service Delivery Model for the Digital Services

Factory has been defined so as to enable the efficient

provision of high-quality and user-friendly digital

services to the public. This shall include: (a) the

establishment of the core Digital Services Factory

team (including the procurement of services of

experts from the private sector), and (b) definition

of the standards and procedures for the development

of digital services.

225 C4.2R1

Digital Services

Factory

Target Expansion of

delivery of

government

services online

through the Digital

Services Factory

- Number 0 20 Q4 2023 Digitalisation and delivery online of at least 20

services to the public through the Digital Services

Factory, using the defined Service Delivery Model

(under milestone with a sequential number 224) and

agile methodologies.

226 C4.2R1

Digital Services

Factory

Target At least 70 services

through the Digital

Services Factory

- Number 20 70 Q2 2026 Digitalisation of at least 70 services through the

Digital Services Factory.

227 C4.2R2

New cloud policy

with regard to

government IT

systems and

services and

infrastructure set-

up

Target Two data centres

with hosting

services

- Number 0 2 Q4 2024 Two data centres with hosting services for

government IT systems.

78

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion

(indicate the quarter

and the year) Description and clear definition of each

milestone and target

Unit of

measure Baseline Goal Quarter Year

228 C4.2R2

New cloud policy

with regard to

government IT

systems and

services and

infrastructure set-

up

Milestone Adoption of a

national cloud

policy by the

Council of

Ministers

National cloud

policy adopted by

the Council of

Ministers

Q4 2025 A National Cloud Policy on the use of cloud

computing technologies in the public sector is

adopted by the Council of Ministers.

229 C4.2R3

Police

Procedures

digitalisation

Digipol

Milestone Digipol prototype

operational

Declaration by

Cyprus Police

confirming that

the prototype

platform

(Digipol) is

operational

- - - Q2 2023 The prototype platform (Digipol) is operational.

Police officers shall be the users and have access to

the prototype Digipol for familiarity and training

purposes.

230 C4.2R3

Police

Procedures

digitalisation

(Digipol)

Milestone Digipol accessible - Q3 2025 Digipol shall be accessible. Training and

dissemination activities have been conducted.

231 C4.2R4

Setting up the

beneficial

ownership

registry

Milestone Beneficial

ownership registry

available for use

Beneficial

ownership

registry publicly

available online

at national and

European Level

- - - Q4 2023 The beneficial ownership registry shall be deployed

and become available for use at national level and

European level, enabling users to check the ultimate

beneficial ownership information of legal entities

and to achieve interconnection of the beneficiary

ownership registers with other Member States.

232 C4.2I1

Digitalisation in

various Central

Government

Ministries -

Services

Milestone Repository system

for audit and

control:

information for

monitoring

implementation of

RRF

An audit report

confirming

repository system

functionalities

- - - Q1 2022 A repository system for monitoring the

implementation of the RRF shall be in place and

operational. The system shall include, as a

minimum, the following functionalities:

(1) collection of data and monitoring of the

achievement of milestones and targets; (2) collect,

store, and ensure access to the data required by

Article 22(2)(d) (i) to (iii) of Regulation (EU)

2021/241.

79

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion

(indicate the quarter

and the year) Description and clear definition of each

milestone and target

Unit of

measure Baseline Goal Quarter Year

233 C4.2I1

Digitalisation in

various Central

Government

Ministries -

Services

Target Start of the digital

upgrade of a

number of central

government

ministries and

departments

- Number 0 4 Q1 2022 The contracts with providers selected through

public procurement procedures have been signed to

digitalise/digitally upgrade at least four of the

following central government

ministries/departments:

1. Road Transport Department of the Ministry of

Transport, Communication and Works,

2. Deputy Ministry of Shipping.

3. Ministry of Foreign Affairs

4. Directorate General Growth

5. Department of Town Planning and Housing of

the Ministry of Interior (for Architectural

Heritage).

235 C4.2I1

Digitalisation of

Central

Government

Ministries or

departments

Target Delivery of digital

systems of five

central government

ministries or

departments

- Number 0 5 Q4 2025 Implementation Completion Reports or Acceptance

Certificates have been issued for digital systems for

the five central government ministries or

departments from the list in target with sequential

number 233. For the Department of Road Transport,

the system shall include the digitalisation of

workflows that may include, but it is not limited to,

Vehicle registration, Road tax license renewal and

vehicle inspection. For the Deputy Ministry of

Shipping, it may include, but it is not limited to,

Issuance or Renewal of Endorsements and

Seamen’s Books, Ship registration, and the

Electronic Tonnage Tax System.

236 C4.2I2

Digitalisation of

the Cyprus Ports

Authority

Target Start of the digital

upgrade of the

Cyprus Ports

Authority

- Number 0 4 Q2 2023 The contracts with providers selected through a

public procurement procedure have been signed to

develop/upgrade at least four of the following

seven systems for the Cyprus Ports Authority:

1. Upgrade of the Port Community System;

2. Installation of VTS Station;

3. Digitisation of CPA archives;

4. Upgrade of IT infrastructure (such as network,

switches);

5. Update IS systems;

6. Installation of an HR Management System;

7. Upgrade CPA Servers;

80

Sequential

Number

Related

Measure

(Reform or

Investment)

Milestone/

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Timeline for

completion

(indicate the quarter

and the year) Description and clear definition of each

milestone and target

Unit of

measure Baseline Goal Quarter Year

and contracts have been signed to develop the

following e-service:

• monitoring and safety of navigation to and from

the ports of Larnaca and Vasiliko.

237 C4.2I2

Digitalisation of

the Cyprus Ports

Authority

Target IT infrastructure of

Cyprus Ports

Authority

- Number 0 4 Q2 2024 The following infrastructure and systems are

delivered:

1. VTS Station;

2. IT infrastructure (structured cabling and ethernet

switches);

3.Solutions or services for the security of

information systems (IS);

4. CPA servers.

238 C4.2I2

Digitalisation of

the Cyprus Ports

Authority

Target IT infrastructure of

Cyprus Ports

Authority

- Number 4 7 Q4 2025 The following infrastructure, systems and services

are delivered:

1. Upgrade of the Port Community System in a User

Acceptance Testing (UAT) environment;

2. Digitisation of CPA archives;

3. HR Management System in a User Acceptance

Testing (UAT) environment.

81

L. COMPONENT 5.1: EDUCATIONAL 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 market-relevant 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 (country-specific recommendation 3 2019) as well as on

digital skills (country-specific recommendation 4 2019 and country-specific recommendation 3 2020).

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 this reform is to address the skills mismatch between the labour market and the

secondary and higher education system.

This measure consists in actions included in the National Action Plan.

Reform 2 (C5.1R2): A school evaluation system and formative evaluation of teachers

The objective of this reform is to enhance the quality of education and consequently students’ educational

outcomes.

This measure consists in a school evaluation system and formative evaluation of teachers.

Reform 3 (C5.1R3): Gradual 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).

This measure consists in the extension of free compulsory pre-primary education from the age of four.

Reform 4 (C5.1R4): Digital transformation of school units with the aim of supporting digital skills and

skills related to STEM education

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

This measure consists in the supply or financial support for digital equipment to schools and students.

82

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

This objective of this reform is to enhance digital competences across population groups.

This measure consists in actions related to the E-skills action plan.

Investment 1(C5.1I1): Construction of one Model Technical School

The objective of this investment is to extend the capacity of vocational education and training (VET) in

Cyprus.

This measure consists in the signature of the contract for the construction of one new technical school in

Limassol

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

The objective of this investment is to support the skills of the population.

This measure consists in training participants in programmes for digital, green, blue, and entrepreneurial

skills.

83

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

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

239a C5.1R1

Addressing skills

mismatch

between

education and

labour market

(Secondary and

Higher Education)

Milestone Measures

included in the

National Action

Plan

Publication of

report and

approval of the

curricula and

programmes by

competent

authorities

- - - Q4 2024 The milestone consists in the following:

(a) the preliminary results of a “Graduate

Tracking of Cyprus Higher Education"

survey and a published report on the

survey.

(b) 40 educational curricula in secondary

schools are amended to support the

following skills that may include but it is

not limited to soft, hard, entrepreneurial

skills

(c) two new programmes of study in

secondary general, and vocational

education and training,

239b C5.1R1

Addressing skills

mismatch

between

education and

labour market

(Secondary and

Higher Education)

Target In-job

shadowing

programme

Number 0 2 250 Q2 2026 In-job shadowing programme for at least

2 250 secondary general education pupils.

239c C5.1R1

Addressing skills

mismatch

between

education and

labour market

(Secondary and

Higher Education)

Target Laboratories

equipped and

updated

- Number 0 170 Q2 2026 Completion acceptance certificate(s) for

the supply of equipment to 170

laboratories for Secondary Education.

241 C5.1R2

A school

evaluation system

and formative

evaluation of

teachers

Milestone Council of

Ministers

Decision for a

new School

Evaluation

system and

entry into force

of the legal

Entry into force of

the legal act(s)

- - - Q2 2025 Council of Ministers Decision for a new

School Evaluation system and entry into

force of the legal act(s) concerning the

formative evaluation of teachers and the

establishment of Committee(s).

84

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

act(s) for the

Formative

Evaluation of

Teachers

243 C5.1R3

Gradual extension

of free

compulsory pre-

primary education

from the age of

four

Milestone Entry into force

of the new Law

regarding the

gradual

extension of

free compulsory

pre-primary

education from

the age of four

years and

adoption of aid

schemes by the

Council of

Ministers

Provision in the

law(s) indicating

the entry into

force of the law(s)

- - - Q4 2023 Entry into force of the Law which shall

gradually (starting in the academic year

2024-2025 until academic year 2032-

2033) reduce the entry age in free

compulsory pre-primary education from

the age of four years and eight months to

four years. Adoption by the Council of

Ministers of aid schemes to (a) cover

tuition fees for the free compulsory pre-

primary education in communal

kindergartens, for children that cannot be

enrolled in public kindergartens, and (b)

subsidise tuition fees in private and

communal kindergartens and nurseries,

for the enrolment of children aged under

the entry level of compulsory pre-primary

education and above the age of four.

244 C5.1R3

Gradual extension

of free

compulsory pre-

primary education

from the age of

four

Target Children aged

between 4 years

and 4 years and

8 months

enrolled in

public,

communal or

private

kindergartens

- Number 0 4 800 Q2 2026 At least 4 800 children aged between 4

years and 4 years and 8 months are

enrolled in public, communal or private

kindergartens, or nurseries.

245 C5.1R3

Gradual extension

of free

compulsory pre-

primary education

from the age of

four

Target New places in

new or extended

public

kindergartens

- Number 0 675 new

places in

public

kindergartens

Q2 2026 At least 675 new places in public

kindergartens

246a C5.1R4

Digital

transformation of

school units with

the aim of

supporting digital

Target Classrooms

digitally

equipped

- Number 0 700 Q2 2024 Classrooms in at least 700 schools have

been digitally equipped with, for example,

laptops, projectors, microphones,

speakers, digital graphic boards, cameras,

and TVs.

85

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

skills and skills

related to STEM

education 246b C5.1R4

Digital

transformation of

school units with

the aim of

supporting digital

skills and skills

related to STEM

education

Target Support scheme

for the digital

equipment for

pupils

- Number 0 15 000 Q2 2026 Supply or financial support for the

purchase of digital equipment to 15 000

students.

249 C5.1R5

E-skills Action

Plan –

Implementation of

specific actions

Milestone National e-

Skills Action

Plan is adopted

by the Council

of Ministers

National e-

Skills Action Plan

is adopted by the

Council of

Ministers

Q4 2021 National e-Skills Action Plan is adopted

by the Council of Ministers, which shall

include at least:

• development of an e-learning platform,

containing a

self-assessment tool for digital fitness,

index of all available skilling

programmes,

and content material on digital skills and

cross-sectoral competences.

• design and delivery of programmes and

interventions for professionals within the

public sector in areas such as Project

management, Microsoft tools,

cybersecurity, social media, e-

collaboration and productivity tools;

• investment in digital infrastructure.

250 C5.1R5

E-skills Action

Plan – Delivery of

specific actions

Milestone Measures

related to the e-

Skills Action

Plan

Programmes

organised,

approval of a

communication

plan

- - - Q4 2025 - Trainings targeted at public sector

employees for digital skills and project

management.

- Receipt of digital equipment (for

example laptops, computers).

- Approval of a communication plan for

the promotion of digital skills.

251 C5.1I1

Construction of

one Model

Technical School

Milestone Contract for the

construction of

one Technical

School

Contract

Signature and

initiation of

construction

- - - Q4 2022 Signing of a contract with the contractor

selected under a competitive call for

proposals for the construction of one

Technical School in Limassol and issue of

construction initiation order by the project

Engineer.

86

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion Description of each milestone and

target Unit of

measure Baseline Goal Quarter Year

254 C5.1I2

Skilling,

Reskilling and

Upskilling

Target Trainings in

programmes for

digital, green,

blue and

entrepreneurial

skills

- Number 0 25 600 Q4 2025 25 600 participants trained in programmes

for digital, green, blue, and

entrepreneurial skills.

87

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 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).

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 this reform is to support flexible work arrangements in the form of telework.

This measure consists in the entry into force of a new legal act(s) for flexible work arrangements and a

subsidy scheme for employers to hire unemployed persons who will partially telework.

Investment 1 (C5.2I1): Supporting the Department of Labour and Public Employment Services (PES)

and reinforcing support for young people

The objective of this investment is enhancing support for unemployed persons.

This measure consists in digitilasing the Department of Labour and Public Employment Services (PES)

and a grant scheme.

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

The objective of this investment is to increase the labour market participation of carers (often women),

and to enhance the availability of quality care and social infrastructure for children.

This measure consists in a scheme for multifunctional centres and childcare centres.

Investment 3 (C5.2I3): Establishment of home structures for people in need of long-term care

The objective of this investment is to address gaps in long-term care services.

This measure consists in home structures for people in need of long-term care.

88

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

The objective of this investment is to facilitate the participation of workers with caring responsibilities,

in the labour market, and to enhance the social inclusion of children from disadvantaged and/or migrant

background.

This measure consists in the construction of four (4) childcare centres.

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

The objective of this investment is to enhance the school environment for pupils with disabilities or other

special educational needs and support them academically and socially.

This measure consists in the construction of two special education schools in the Limassol district.

Reform 1 (C5.2R1): Reform of the Social Insurance System and Restructuring of the Social Insurance

Services

The objective of this reform is to widen access to social protection and to support the Social Insurance

Services.

This measure consists in the extension of social insurance coverage as well as adding services to the

Integrated Social Insurance Information System.

89

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

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

255 C5.2R2

Flexible Work

Arrangements in

the Form of

Telework

Milestone Entry into force of

the law for flexible

work arrangements

in the form of

telework

Provision in the

law indicating

the entry into

force of the law

for the flexible

work

arrangements in

the form of

telework

- - - Q2 2023 Entry into force of a new law which shall regulate

flexible work arrangements in the form of telework.

The law shall include a definition of telework,

description of the economic activities where telework

is applicable, the conditions for taking up telework and

the rights and obligations of employers and

employees.

256 C5.2R2

Flexible Work

Arrangements in

the Form of

Telework

Target Grants disbursed to

employers for hiring

at least 300 persons

- Number 0 300 Q3 2025 Grants disbursed to employers for hiring, for at least 6

months, at least 300 previously unemployed persons

(including at least 140 women), including telework.

258 C5.2I1

Supporting the

Department of

Labour and Public

Employment

Services and

reinforcing

support for young

people

Target Platform and

systems accessible

- Number 0 3 Q4 2024 Platform and systems accessible for:

(1) hiring schemes of the Department of Labour,

(2) Performance Management System for the Public

Employment Services and

(3) an early warning and tracking system for young

people (aged 15-29) not in education, employment, or

training (NEETs) for the Public Employment

Services,

259 C5.2I1

Supporting the

Department of

Labour and Public

Employment

Services and

reinforcing

support for young

people

Target Grants disbursed to

employers for hiring

at least 450 young

people not in

employment or in

education or

training (NEETs)

- Number 0 450 Q4 2025 Grants disbursed for hiring at least 450 young people

(aged 15-29) not in employment, education, or training

(NEETs), for at least 6-month period.

261 C5.2I2

Establishment of

multifunctional

centres and

childcare centres

Milestone Adoption of a

national strategy on

early childhood

education and care

Adoption of a

national strategy

on ECEC and

an action plan

- - - Q4 2024 A national strategy and an action plan on enhancing

early childhood education and care (ECEC) have been

adopted by the Council of Ministers.

90

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative

indicators

(for milestones)

Quantitative indicators

(for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit of

measure Baseline Goal Quarter Year

(ECEC) and action

plan

263 C5.2I2

Establishment of

multifunctional

centres and

childcare centres

Target Grant disbursed to

at least 9 local

authorities/ Non-

Governmental

Organisations for

Multifunctional

Centres or

Childcare Centres

- Number 0 9 Q2 2026 Grant disbursed to at least 9 local authorities/ Non-

Governmental Organisations for Multifunctional

Centres or Childcare Centres.

264 C5.2I3

Establishment of

Home structures

for people in need

of long-term care

(LTC)

Target Home structures for

people in need of

long-term care

- Number 0 4 Q2 2026 Completion certificate of at least 4 home structures for

people in need of long-term care.

266 C5.2I4

Child Centres in

Municipalities

Target Construction of at

least one child

centre

- Number 0 1 Q4 2022 Completion of construction and issue of taking-over

certificate of at least one child centre in one of the

following municipalities: Ayios Athanasios, Ayia

Napa, Paralimni and Yermasoyia.

267 C5.2I4

Child Centres in

Municipalities

Target Construction of at

least three child

centres

- Number 1 4 Q4 2024 Issuing of taking-over certificates of three child

centres (one child centre in Amathounta, one in Ayia

Napa and one in Paralimni -Deryneia).

268 C5.2I5

Construction of

Two Model

Special Education

Schools

Milestone Signing of contract

with the selected

tenderer (contractor)

The contract

shall be signed

with the

selected

tenderer

(contractor)

- - - Q4 2022 Signing of contract with the selected tenderer(s)

(contractor (s)) selected under a competitive call for

proposals for the construction of two model schools in

Limassol - the Special Education School of Apostolos

Loucas and the Red Cross Recovery Special Needs

School.

269 C5.2I5

Construction of

Two Model

Special Education

Schools

Milestone Construction of two

Special Education

Schools

Taking-over

certificates

- - - Q4 2025 Taking-over certificates of two Special Education

Schools in Limassol.

270 C5.2R1

Reform of the

Social Insurance

System and

Restructuring of

Milestone Entry into force of

the revised Social

Insurance Law

Provision in the

amending law

indicating the

entry into force

of the revisions

Q4 2024 Entry into force of the revised Social Insurance Law,

which shall incorporate the extension of the social

insurance coverage to self-employed.

91

Sequential

Number

Related Measure

(Reform or

Investment)

Milestone /

Target Name

Qualitative