Loans reaching a total of €125 million for Tepak facilities in Limassol and Paphos were signed on Friday between the finance ministry, the European Investment Bank (EIB) and Tepak.
One loan of €108 million was signed for Tepak in Limassol, to cover the costs of a series of works.
The second loan of €17 million will be used to build Tepak dormitories and sports facilities in Paphos and will be based on a government guarantee to the EIB.
Finance Minister Makis Keravnos said the projects would offer affordable housing for students, with a total of 703 dormitory rooms – 500 in Limassol and 203 in Paphos.
The minister said Cyprus’ relationship with the EIB, which has funded projects of strategic importance, has facilitated the growth of the economy over the years.
EIB deputy chairman Kyriakos Kakouris described the signing of the agreements as a milestone, aiming at improving infrastructure and providing affordable housing for students.
He added that part of the funding was additionally supported by InvestEU and that this was a first for Cyprus.
Paphos mayor Phedonas Phedonos said the decision for the dormitories was the result of a municipality policy to promote higher education in the city and establish it as a high standard university education hub.
The mayor said the dormitories would be ready to use in the next few days and that contracts will be signed with students for 155 of the 203 rooms.
A call for tenders will be made by next Friday for the sports facilities, which will cover an area of 16,000 square metres.
Tepak rector Panayiotis Zaphiris said this was a turning point in the university’s 20-year course, which allowed it to make the biggest expansion yet to its campus.
Zaphiris said the loan would allow the university to develop student housing in the Berangaria settlement, as well as fund the erection of three more buildings for engineering and arts, as well as multimedia and graphic design.
