President Nikos Christodoulides has made a special reference to reforms on the licensing of developments and the conclusion of public contracts, as well as measures to address the housing problem.
The statements were part of his address to the 31st General Assembly of Cyprus Federation of Building Contractors Associations (OSEOK), held in Nicosia on Saturday, 29 November.
Addressing the General Assembly, President Christodoulides noted that the sector has made a decisive contribution to the country's development, while also stating that "the Cypriot economy is performing at a level that is the envy of even large, powerful European states."
He also highlighted the revision of development licensing procedures as a key priority, with the implementation of a new framework with fast-track licensing procedures for low- and medium-risk developments, which account for almost 50% of licenses, as he said.
"The goal is to reduce bureaucracy and simplify and digitize the relevant procedures, with a drastic reduction in the time required to review and issue urban planning and building permits to 40 working days for single-family and two-family homes and 80 working days for apartment buildings with up to 20 units," the President noted.
He added that since the implementation of the new system, more than 1,400 applications for single-family and two-family homes and approximately 260 applications for apartment buildings with up to 20 apartments and developments with up to 12 homes in a row have been reviewed using the fast-track procedure within the time limit.
Permit delays
The President also referred to the problem of delays in the issuance of permits by District Local Authorities, noting that the situation has begun to improve.
President Christodoulides then referred to the measures being taken to address the housing problem. More specifically, he spoke about the Urban Planning Initiatives Plans and the Build to Rent scheme, through which land developers are granted an additional building coefficient of up to 45%, as an incentive to produce additional units, with the obligation to make part of the additional housing available at affordable purchase or rent prices.
As a result, he said that approximately 1,500 residential units are expected to be constructed over the next two years, of which 250 will be affordable.
European actions
In addition, he referred to the actions being taken at European level, noting that the President of the European Commission is expected to announce her strategy for affordable housing in December. "As the Republic of Cyprus, taking into account that we will assume the Presidency of the Council of the EU, we will be a beneficial partner in shaping a common housing policy for the EU," said the President.
Contractors' contribution
On his part, OSEOK President, Stelios Gavriel, acknowledging and welcoming the government's stance, pointed out that contractors contribute approximately 12% of GDP, with 6% coming exclusively from the construction activity, creating more than 43,000 jobs for technical and creative staff, with approximately 2,500 contractors registered with OSEOK.
He also made special reference to the labour shortage, pointing out the need for "a comprehensive long-term strategy that responds to the real needs of the sector, more effective procedures for recruiting workers from third countries and evaluating solutions, such as transnational agreements with countries that have skilled and specialized human resources," while also referring to the need to modernize the Contractors Council”.
Modern approaches
On his part, ETEK President, Constantinos Constanti, said in his address to the assembly that modern approaches are needed in the public works chain, pointing out that the country deserves better procedures, transparency, impartiality, and speed in decision-making and project implementation, at the necessary quality levels.
He also expressed his disagreement with the Ministerial decision regarding the conclusion of public contracts, stressing that a "healthy environment" is necessary for the implementation of public projects.
Cyprus Employers & Industrialists Federation (OEB) President George Pantelidis, whose address was delivered by Vice President Demetris Vakis, spoke of the role of the construction industry as the steam engine of the country's economy as well as of its contribution to Cyprus' GDP.
(Source: CNA)
