Minister of Agriculture, Rural Development and Environment Maria Panayiotou has presented the Ministry’s 2026 budget to the House Finance Committee, emphasising the government's strong commitment to water resource management. Notably, 38% of the total budget will be allocated to addressing water needs through a comprehensive plan comprising 28 initiatives.
The total budget for 2026 stands at €552.5 million, with €514.5 million sourced from national funds and the rest from European contributions. Development expenditures are projected at €110.1 million, down from €134.2 million in 2025. Minister Panayiotou attributed this decrease to the ongoing maturation of essential projects, such as solid waste management.
Revenue for 2026 is expected to reach €239.3 million, reflecting a 7% increase comparted to the previous year. This growth is primarily driven by increased income from the auctioning of greenhouse gas emission rights, the Minister said.
A key strategic shift in 2026 involves the permanent operation of desalination units for water procurement, replacing the seasonal use seen in previous years. The government plans to allocate approximately €140 million—the highest amount ever approved—for the purchase of desalinated water.
In addition to the five permanent desalination plants located in Paphos, Episkopi, Vasilikos, Larnaca, and Dhekelia, the Ministry will boost water production by at least 32% through seven mobile desalination projects in Moni, Kissonegra, Garyllis, Limassol Port, Episkopi, Vasilikos, and Famagusta District.
Responding to questions from MPs, Minister Panayiotou, during the 3 November presentation, emphasised that this water strategy will ensure that dam reserves are used exclusively to meet the needs of farmers.
She also announced that more than €195 million will be allocated to water policy projects—an essential investment as Cyprus faces one of its worst prolonged droughts in history. The year 2025 ranks as the eighth driest since 1901. In 2026, at least 35 water-related projects will be implemented for irrigation and drinking water, with 15 classified as major infrastructure developments.
(Source: CNA)
