In a panel discussion at the Unlocking Investment Through PPPs Summit, four Cypriot government ministers laid out their priorities for Public-Private Partnerships, calling for more agility, better planning and deeper investor engagement to meet the island’s strategic needs.
A publication edition containing an overview of what was discussed during the summit, is now available online. You can find it here.
The potential of Public-Private Partnerships (PPPs) in Cyprus is no longer in question but room for improvement remains regarding their pace and scope. That was the central message from four government ministers during the final session on Day One of the Unlocking Investment Through PPPs summit in Nicosia. Moderated by Invest Cyprus CEO Marios Tannousis, the panel brought together Deputy Minister to the President Irene Piki, Minister of Energy George Papanastasiou, Minister of Transport Alexis Vafeades, and Deputy Minister of Tourism Kostas Koumis. Each offered candid assessments of where PPPs have worked, where they’ve stalled and what needs to change. “We need capacity-building, legal clarity, and a stronger strategic narrative to international investors,” Piki highlighted.
A sharper investment narrative
Opening the session, Piki highlighted Cyprus’ economic trajectory: among the highest growth rates in Europe in 2024, an unemployment rate below 5% and the public debt on track to fall below 60% of GDP by 2026. But she acknowledged a gap between macroeconomic performance and the full uptake of PPPs. “The challenges lie in long-term planning and public sector capacity,” she said. “We must become more agile in responding to private sector interest – without losing transparency or legal integrity.” Piki also called for better alignment between strategic priorities and investor pitches. She suggested integrating PPP-ready projects into the Cyprus Project Bank, creating a clear national pipeline.
Marinas as flagship projects
Koumis pointed to tourism infrastructure as one of Cyprus’ most advanced PPP domains. Drawing on global best practices – and Cyprus’ own recovery after 1974 – he listed four major marina developments: Limassol Marina, which is completed and commercially successful; Ayia Napa Marina, which is delivered and operational; Paralimni Marina that is nearing completion; and Paphos Marina, a major new project for 1,000 berths, with international tenders expected soon. “These are transformative for our tourism offering,” he said. “We expect strong global interest.” Koumis also previewed plans for large-scale theme parks, part of a broader policy to extend Cyprus’ tourism season and improve its “pull factors” during winter.
Energy projects as regional game changers
Papanastasiou made a case for viewing PPPs and Foreign Direct Investment (FDI) as complementary strategies, especially in the capital-intensive energy sector. “FDI via PPPs reduces public expenditure while ensuring high-quality delivery,” he said. He spotlighted Cyprus’ Business Facilitation Unit, which streamlines permits and offers investors a one-stop-shop. But he also acknowledged public scepticism around PPPs, calling for greater transparency to build trust.
On the project front, Papanastasiou cited the Great Sea Interconnector with Greece and Israel, a regional electricity link with major geopolitical and energy implications. He also discussed the country’s energy transition, including renewables, storage and smart grid upgrades, as well as offshore gas projects, with multinationals involved in what he called “one of Cyprus’ largest PPP-style investments,” with first output expected by 2027. “Building trust is vital. In Cyprus, public-private cooperation sometimes faces scepticism. So, transparency is key – answering the question ‘Why this investor?’ helps manage public perception and fosters collaboration,” he stressed.
Real estate and pragmatic PPPs
Transport Minister Vafeades focused on the often-overlooked preparation phase of PPPs: what happens before tenders are launched. “Our ministry’s work starts long before the agreement,” he said. “Engineering, legal and administrative design are essential to success.” He listed three main drivers for PPPs: expertise, which involves accessing capabilities beyond the public sector; financing, which is about circumventing budget constraints; and human resources, as PPPs supplement limited state personnel.
Vafeades confirmed that his ministry is re-evaluating the Larnaca Port and Marina PPP, possibly splitting it into two separate tenders. He also discussed Troodos real estate projects, where the state will seek private partners to revitalise rural tourism assets, and even floated the idea of office-space PPPs, where public buildings include commercial components with no upfront public expenditure. “Road infrastructure is not currently under PPP consideration due to socioeconomic concerns but other commercially viable sectors are open for exploration,” he noted.
From pipeline to process reform
The ministers concluded with a series of observations on what Cyprus must get right if it is to unlock more PPP investment. For her part, Piki called for better anticipation: water management, technology parks and national infrastructure must be planned now, not later. Vafeades flagged office space as an urgent frontier, with demand exceeding 100,000²–200,000m² and Koumis framed the future of tourism around Public-Private policy, not just individual projects. For Papanastasiou, while people matter in this equation, processes must evolve, otherwise even capable teams will fail. “Without adaptive, open-minded processes,” he said, “even the best people can’t deliver PPPs.”
Panel discussion
Utilizing PPP to Unlock Investment
• Alexis Vafeades, Minister of Transport, Communications and Works
• George Papanastasiou, Minister of Energy, Commerce and Industry
• Irene Piki, Deputy Minister to the President
• Kostas Koumis, Deputy Minister of Tourism
Moderator: Marios Tannousis, CEO, Invest Cyprus
Read more about PPPs in the online edition here.
