The government approved the funding for the construction of 703 student dormitories for TEPAK (Cyprus University of Technology) in Limassol and Paphos through a loan agreement between the Republic of Cyprus and the European Investment Bank (EIB) amounting to €108 million, as announced by Deputy Government Spokesman Giannis Antoniou, in the context of the government’s policy to address the serious housing problem, especially for young people.

As Mr. Antoniou stated after the conclusion of the Cabinet meeting, the body approved the relevant proposal of the Ministry of Finance for the negotiation of a Loan Agreement amounting to up to €108 million with the EIB. Besides financing the construction of student dormitories, it also provides for the construction and/or renovation of various academic and research facilities of TEPAK in Limassol and Paphos. The proposed loan includes a 5-year grace period and a long repayment period of 25 years.

He added that the state will contribute another €53 million for these projects.

"In the context of its policy to address the serious housing problem, especially for young people, the government considers the implementation of the above projects very important," Mr. Antoniou said, adding that "the continuously increasing demand of Cypriot universities by both Cypriot and international students makes the timely construction of student dormitories even more imperative."

Mr. Antoniou mentioned that a total of 703 student beds will be constructed, with 500 in Limassol and the rest in Paphos, and noted that this project will improve "students' access to high-quality tertiary education and research services as well as affordable housing."

"Besides contributing to the promotion of affordable student housing and the enhancement of education and research, the project also provides the opportunity to create new jobs and increase productivity in these areas," he continued.

Furthermore, the Deputy Government Spokesman stated that the planned TEPAK projects, with an estimated total cost of €178.1 million, will be implemented by two entities. TEPAK will be responsible for the projects in Limassol, while the Municipality of Paphos will be responsible for the projects in Paphos.

Finally, he mentioned that the planned TEPAK projects in Limassol have been included in the relevant provisions of the budget of the Ministry of Education, Sports, and Youth for the year 2024.