Limassol is exploring ways to attract private investment for its waterfront transformation, with public guarantees and risk-sharing mechanisms among the options under consideration.
An investment dialogue on November 10 at the Panos Solomonides Cultural Centre will examine how to make the regeneration of Aktaia Odos more attractive to investors. The event will bring together municipal and national authorities, financial institutions and businesses to discuss how public support can reduce investment risks and borrowing costs.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
A €1.3 Billion Climate Investment Pipeline
The initiative forms part of Limassol’s Climate City Contract, an investment strategy worth approximately €1.3 billion. The European Commission recognised the city as one of the EU’s 100 climate-neutral and smart cities and awarded it the EU Cities Mission Label in 2024.
The plan covers around 30 actions and 300 projects across energy, digitalisation, waste management, the circular economy, the coast and port, and the built environment. However, the Municipality of Limassol is expected to implement directly only about 9% of the pipeline. Delivering the rest will depend on European and national funding, institutional support and private investment.
Aktaia Odos: Transforming Limassol’s Waterfront
Aktaia Odos is a priority project under the Climate City Contract. It aims to regenerate the coastal area behind Limassol’s port, where ageing industrial infrastructure and the traditional “Karnagio” shipyard have long separated the site from the wider waterfront.
The project envisages a 1.5-kilometre seafront park connecting the Marina and city centre with the new port and western development zone. Plans include public transport infrastructure, pedestrian and cycling routes, and provision for a possible future tram line, subject to a viability assessment.
A pilot section opened in September 2025, featuring approximately one kilometre of walking and cycling paths, lighting, new trees and a 350-metre reclaimed beach.
Further development depends partly on relocating the Karnagio shipyard to a modern facility elsewhere. The shipyard provides repair and maintenance services for Cyprus’ marinas, while the central government is responsible for identifying a suitable alternative coastal site.
The wider regeneration is expected to encourage sustainable construction, tourism and business activity, while expanding green spaces and supporting lower-emission transport.
How Public Guarantees Could Unlock Investment
Participants will examine financing options including green and blue bonds and loans, Build-Operate-Transfer contracts, public-private partnerships and blended finance.
Particular attention will go to the state’s potential role through public guarantees, first-loss tranches and credit enhancement. These mechanisms can absorb some early-stage and political risks, reducing investors’ exposure and potentially lowering the cost of capital.
Strategically deployed public funding could therefore help make projects commercially viable without requiring the state to finance them in full.
Bringing Authorities And Investors Together
The roundtable will involve the municipality, national ministries, financial institutions and companies in construction, logistics and mobility. Plenary sessions and smaller World Café-style discussions will focus on financing options, investment barriers and opportunities for collaboration. The conclusions are expected to inform a wider climate finance conference in Athens in November.
The programme includes presentations on financing net-zero cities by Bob D’Haeseleer of ICLEI, green investment by Dr Loukas Dimitriou of the University of Cyprus, and climate-driven urban transformation by Filip Coenen of the City of Leuven and Aimilia Pistrika of the European Investment Bank.
Limassol Mayor Yiannis Armeftis will deliver the opening remarks at 10 a.m. Breakout discussions are scheduled from 11:15 a.m. to 12:15 p.m., followed by group conclusions and closing remarks.
Turning Climate Ambition Into Investable Projects
For Limassol, the challenge is to create financing structures that make climate-focused urban development attractive to private investors while preserving its public benefits. Public guarantees, co-investment and risk-sharing could help bridge the gap between the city’s climate ambitions and the capital needed to deliver them.







