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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.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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