EY Cyprus’ Stelios Demetriou says Cyprus is lacking against its peers when it comes to PPPs

Cyprus is lacking against its peers when it comes to public-private partnerships (PPPs), which are key to ensuring sustainable economic growth – especially for an island economy, according to Stelios Demetriou, Partner, Leader of Strategy and Transactions Services, CESA M&A Leader, EY Cyprus.

Addressing the Unlocking Investment Through PPP International Summit at the Hilton Nicosia, Demetriou pointed out that the synergies and value for money that can be created by engaging a long-term investment commitment is massive.

But, he stressed: “Cyprus is lacking against its peers.” As he said, the EU’s PPP market has expanded in both value and aggregated value, with around 500 PPPs implemented over a 10-year period, with an aggregated value of €125b.

France, Germany and the UK took the absolute majority, leading in both number of projects and value, followed by Italy and Greece; “but Cyprus is nowhere in the charts”.

Governments, particularly in small and developing nations like Cyprus, are facing the challenge of expanding their infrastructure to boost growth, Demetriou pointed out. “PPPs have proven to be very effective to this end,” he added, but wondered why the country has been relatively unsuccessful in attracting large PPP projects. And he also mentioned how 2024 saw the postponement of several projects, including the Larnaca marina and port development, The Vasilikos terminal, and Paphos – Polis Chrysochous road which was first promised in the 90s.

He further pointed to the need to upgrade the island’s electricity grid which is struggling and its outdated water distribution system.

“The PPP shortfalls can also be attributed to a lack of a proper PPP strategy and public sector capacities, as well as the inability to manage PPPs effectively,” said Demetriou. “On the other hand, while positioned to offer technical and managerial expertise, the private sector is more focused on the profit than long-term sustainability.”

He said the international summit was a good opportunity to improve this. “Cyprus definitely needs more infrastructure and the government needs more funds to do this. We should listen to the experts very carefully today, engage with colleagues and seize the opportunities that will arise,” he concluded.

The Summit is addressed to Cyprus government officials involved in PPP, C-level executives of companies from all sectors of the economy involved or interested in PPP or PPI, and members of WAPPP and WAIPA.

The Summit has been organised by Invest Cyprus, the World Association of Investment Promotion Agencies (WAIPA) and World Association of PPP Units & PPP Professionals (WAPPP).

EY Cyprus is Gold Sponsor, Hermes Airports is Silver Sponsor, and the European Investment Bank is the Knowledge Sponsor.

It is being coordinated by IMH and is taking place under the auspices of the Republic of Cyprus.