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Cyprus Implements Ambitious Desalination Projects to Secure Water Supply Amid Historic Drought

by THEFUTURE.TEAM

Facing an unprecedented drought, Cyprus is set to launch a vast portfolio of desalination projects as part of a government strategy to ensure water security. Proposed by Agriculture Minister Maria Panagiotou and approved by the Cabinet of Ministers, the initiative marks the most significant state investment in water infrastructure in over a decade.

Record Investment Reflects National Priority

The comprehensive plan allocates a record €140 million for the purchase of desalinated water by 2026, underlining the government’s commitment to safeguarding drinking water reserves while repurposing dam resources for irrigation. This decisive allocation is designed to counteract the severe water deficits predicted in key districts.

Permanent Installations to Bolster Regional Capacity

Two new permanent desalination facilities are slated for development. The first, scheduled for the eastern region of Limassol, will boast a capacity of 60,000 to 80,000 cubic meters per day, catering to the rapidly growing urban demands that have historically relied on natural sources such as the Kouros dam and groundwater extractions.

The second permanent unit is planned for Dekelia. This replacement project, set to supersede the ageing installation whose contract expires in 2027, will provide 80,000 to 100,000 cubic meters daily. Its strategic location will support water supply needs in both the Ammochostos region and parts of Larnaca, ensuring sustainable access as regional demand escalates.

Mobile Solutions for Immediate Impact

Complementing the large-scale permanent investments, authorities have prioritized the expedited deployment of mobile desalination units. Four projects, already fast-tracked and operational within just three months, will contribute an additional 47,000 cubic meters of water daily by January 2026. In parallel, the Department of Water Development (TAW) is orchestrating the installation of three further mobile units, aiming for operational status before the summer of 2026. Each unit will supply at least 10,000 cubic meters daily for five years.

Strategic Locations for Mobile Units

Deployment plans include:

  • Episkopi (Municipality of Kouros): Situated near British Bases and adjacent to the existing Limassol facility. The tender was announced on 30 September, with contract initiation expected by the end of November and a project delivery timeline of six months, potentially accelerated to four months with performance bonuses.
  • Hellenic Electricity Authority (HEA) at Vassiliko: This unit will operate in tandem with the permanent desalination installation, delivering an additional 10,000 cubic meters daily. The competitive tender is expected to launch by November for a summer 2026 commencement.
  • Ammochostos Free Area: Prioritizing the Agia Napa site, with a subsequent plan for Paralimni – Deryneia, to ensure robust supply to the Protaras tourist district.

TAW will later evaluate the possibility of permanently integrating these mobile units or expanding their capacity and operational duration based on the forthcoming Desalination Feasibility Study.

Enhanced Daily Output and Future Security

Collectively, the seven mobile units (three new and four existing) will add 77,000 cubic meters to the daily water output, surpassing even the combined production of the permanent units at Vassiliko and Paphos. This initiative is projected to boost the proportion of water supplied through desalination by over 32%, ultimately fulfilling 100% of the nation’s water needs. Currently, five permanent plants deliver 235,000 cubic meters each day, covering only 70% of demand.

Crisis Mode: Dwindling Dam Reserves

The Department of Water Development reports that dam levels have tragically fallen to just 10.8% of capacity, compared to 25.9% in the previous year. The Kouros dam, the largest in Cyprus, now registers a mere 9.8% full, a stark drop from 23.5% just last year. This urgent scenario necessitates the rapid enhancement of the nation’s water balance via advanced desalination projects.

Conclusion: A Strategic Turnaround for Cyprus

Minister Panagiotou emphasized that “Cyprus is facing the most severe water scarcity in decades,” and asserted that these projects guarantee uninterrupted access to water for both domestic consumption and irrigation. The government’s forward-looking strategy, emphasizing speed, technological innovation, and environmental stewardship, is set to redefine the nation’s water security framework. With water reserves at historic lows and unpredictable rainfall patterns looming, 2026 is poised to be a landmark year in the sustainable management of Cyprus’s water resources.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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