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Cyprus Main Report Directorate General Regional Policy a Report Submitted By STRATEGIC EVALUATION ON ENVIRONMENT AND RISK PREVENTION UNDER STRUCTURAL AND COHESION FUNDS FOR THE PERIOD 2007-2013 Contract No. 2005.CE.16.0.AT.016. National Evaluation Report for Cyprus Main Report Directorate General Regional Policy A report submitted by in association with Andrew Farmer, Vanessa Aufenanger, Samuela Bassi, Patrick ten Brink and Jason Anderson Institute for European Environmental Policy, IEEP 18 Avenue des Gaulois, B1040 Brussels, Belgium & 28 Queen Anne’s Gate London, SW1H 9AB, UK Date: November 10th, 2006 GHK Brussels Rue de la Sablonnière, 25 B-1000 Brussels Tel: +32 (0)2 275 0100; Fax : +32 (2) 2750109 GHK London 526 Fulham Road London, United Kingdom SW6 5NR Tel: +44 20 7471 8000; Fax: +44 20 7736 0784 www.ghkint.com TABLE OF CONTENTS EXECUTIVE SUMMARY................................................................................................................. 1 1 OVERVIEW AND HORIZONTAL ISSUES ............................................................................... 2 1.1 Country overview.................................................................................................................... 2 1.2 Status of implementing the EU environmental Acquis........................................................... 4 1.3 Environmental Policies, Strategies and Planning .................................................................. 5 1.4 Overview of national environmental expenditure ................................................................... 7 1.5 Insights on past programming/funding................................................................................... 8 1.6 Public Private Partnerships (PPP) .......................................................................................11 2 WATER SUPPLY....................................................................................................................13 2.1 Current situation...................................................................................................................13 2.2 Drinking Water demand .......................................................................................................18 2.3 Experience of previous investment programmes.................................................................23 2.4 Needs for the future..............................................................................................................23 2.5 Priority assessment..............................................................................................................26 3 WASTE WATER TREATMENT..............................................................................................28 3.1 Current situation...................................................................................................................28 3.2 Experience of previous investment programmes.................................................................34 3.3 Needs for the future..............................................................................................................35 3.4 Priority assessment..............................................................................................................41 4 URBAN SOLID WASTE .........................................................................................................43 4.1 Current situation...................................................................................................................43 4.2 Experience of previous investment programmes.................................................................47 4.3 Needs for the future..............................................................................................................48 4.4 Priority assessment..............................................................................................................51 5 RENEWABLE ENERGY.........................................................................................................53 5.1 Current situation...................................................................................................................53 5.2 Experience of previous and other ongoing investment programmes...................................61 5.3 Priority assessment..............................................................................................................70 6 NATURAL RISKS ...................................................................................................................72 6.1 Current situation...................................................................................................................72 6.2 Experience of previous investment programmes.................................................................79 6.3 Needs for the future..............................................................................................................79 6.4 Priority assessment..............................................................................................................80 7 PRIORITY ASSESSMENT .....................................................................................................81 Strategic Evaluation of Environment and Risk Prevention – Country Report – Cyprus EXECUTIVE SUMMARY See separate document. GHK, ECOLAS, IEEP, CE 1 1 Strategic Evaluation of Environment and Risk Prevention – Country Report – Cyprus 1 OVERVIEW AND HORIZONTAL ISSUES 1.1 Country overview Cyprus is a Mediterranean island situated in the Middle East. There are 780,133 (July 2005 est.) people living in Cyprus and the population growth is 0.54% (2005 est.). 77% are Greek Cypriots, 18% Turkish Cypriots and 5% others. (CIA Factbook). The climate in Cyprus is Mediterranean, semi-arid with hot, dry summers and mild winters except in the mountains where it is cool and snow is frequent. There is almost no rainfall between May and September. The total land area comprises 9,250 sq km. However, due to the unsolved conflict with the Turkish occupied north, 3,355 sq km of the island are not yet within the EU. Nevertheless, the EU recognises only one state and the whole island acceded to the EU and thus every Cypriot with a Cyprus passport has the status of a European citizen. However, the Acquis Communautaire does not apply to the northern part of Cyprus until the conflict is solved. The water area of Cyprus comprises 10 sq km and the coastline is 648 km long. The landscape consists of a plain in the centre and is mountainous in the North and South, the area is partly covered with forests; in 2001 7.79% of the area was arable land and 4.44% were covered by permanent crops. (CIA Factbook). Measure 2004 Trend Trend 1995/2004 2003/2004 GDP per capita*1 $20,300 (est.) 16,536.7€ GDP in PPP* $15.71 bn (est.) 12,79 bn € GDP at current market prices 7,292.1 mn CyP**, 12.72225€ GDP growth rate 3.2%*; 3.8%** at constant prices Population** 749,200 656,300 730,400 In urban areas** 520,000 446,900 505,900 (69.4%) (68.1%) (69.3%) In rural areas** 229,200 209,400 224,500 Number of households** 247,700 202,400 238,800 Unemployment rate 3.2%*2, 1 Note: In this report currencies are given in the original where these concern reports, etc, that have been produced at given times in order that currency fluctuations are not opaque in any conversion to Euros. 2 Percent of the labour force that is without jobs GHK, ECOLAS, IEEP, CE 2 2 Strategic Evaluation of Environment and Risk Prevention – Country Report – Cyprus 5.2%*** (2004), 3.5%**3 (2003) Foreign Direct Investment $1.22 billion (2004), 0.99bn€, 9% of GDP in 2003**** * Data taken from CIA Factbook ** Republic of Cyprus - CyStat *** European Union - EuroStat **** Norwegian UN Association General et al. Economy The economy of the Greek part of Cyprus is highly developed. Tourism and financial services are the most important branches of the service sector. They provide 76% of the GDP (agriculture 4.1%; industry 19.9%). The main industries are food and beverage processing, light chemical industry (pharmaceutical), metal products, cement and gypsum production, ship repair and refurbishment, textiles, wood, paper, stone, and clay products. The main exports are agricultural products, pharmaceuticals, cement, clothing and cigarettes. The Turkish Cypriot economy is less developed and very much dependent on Turkey for its international isolation (only recognised by Turkey). Almost half of the work force is in agriculture and the government service. (CIA Factbook) Although the agricultural sector contributes only a small amount to the GDP, this sector is still very important for the Cypriot economy. The number of people employed in the agricultural sector has declined continuously since Cyprus’ independence from the UK in 1974. In 2004 only 7% were employed in this sector, whereas in 1994 around 16% worked in the agricultural sector. The main crops are citrus fruits, olives, grapes, potatoes, melons, wheat and barley. The production is however vulnerable due to climate, especially droughts. (Republic of Cyprus – MANRE 2004). After 10 years of drought with a negative effect on agriculture, from 2001-03 precipitation was high. (CIA Factbook) Fisheries, being a relatively new sector is now a major production area. In 2004 the production from fisheries and aquaculture was 5053 tonnes (1553 tonnes from fisheries). Inshore fisheries were 639 tonnes. (Republic of Cyprus – MANRE 2004). 3 Registered unemployed GHK, ECOLAS, IEEP, CE 3 3 Strategic Evaluation of Environment and Risk Prevention – Country Report – Cyprus Administration and Politics Cyprus is divided into
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