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- Ελληνικά
It is with great pleasure that I participate in this year's General Assembly of the Association of Large Developers, one of the most important and strongest development bodies of our country, where through an admirable course and action in a short period of time, just ten years, you have established your position as protagonists in promoting sustainable development in Cypriot business. The long history of the Association of Large Developers is inextricably linked to the progress and development of our country with projects and investments worth billions of euros that contribute, among many other things, to the rise of domestic productivity, the creation of new jobs and the enhancement of our country's investment profile. Undoubtedly, the Association of Large Investments, apart from being an important blood donor of the Cypriot economy, is a partner and fellow traveller in the common effort to attract new investments in our country. I want to assure you that we approach you as Partners. Through your targeted initiatives and the extroversion of your action with projects of strategic scope, you have played a decisive role over these ten years to place our country on the map of international investment.
The sector of land development and related investments, as a key pillar of the Cypriot economy, has been particularly dynamic in recent years, despite the volatile exogenous environment that prevails and certainly affects us. The repercussions of the international crises, combined with developments in our region, inevitably affect the international economic climate and create new socio-economic conditions and data. At this juncture, the land development sector - taking into account the fact that it has long been the engine of the Cypriot economy - remains resilient and versatile, thus contributing decisively to the expansion of our development activity and to the attraction of multiple and qualitative new investments, with multiple benefits in many sectors, for the economy and society.
The Government, recognizing today's challenges, has proceeded with determination and vision to formulate targeted policies and actions to maintain a stable environment, aimed at economic growth and for the benefit of entrepreneurship and social cohesion, which is its objective. In this context, we have set specific objectives and taken initiatives for structural changes, to support investment, reduce bureaucracy and improve the daily lives of our fellow citizens. And we are committed to working every day to implement these goals and initiatives which are crucial for the Cyprus we are changing, for a more resilient and competitive economy. And it is precisely through this reasoning that the Government's prudent fiscal policy and our targeted interventions have yielded results, so that the country's economy remains resilient and on a steady path of growth, always, I repeat, in the interest of the wider society.
Having - and all our policies start from this approach - the human being at the centre of our actions and with the primary concern of ensuring appropriate housing conditions for the whole population, but especially to meet the housing needs of the younger generation, we have proceeded, as we have promised, to develop a more comprehensive housing policy. The announcement last October by the Minister of Interior of a package of targeted measures and actions aimed at increasing the country's housing stock, both new and existing vacant, and making it available at an affordable price. And translating the policy announced into projects and achieving the desired results will be possible with the joint cooperation of the private and public sectors. This is a call to all of you to work together in addressing the most important housing challenge, particularly for the younger generation.
And I say this because the success of such a project rests on the interest that the private sector - your interest - will show in participating in our call, the state's call to invest in the affordable housing market, with multiple benefits for all of us. Taking into account your expertise and listening to your concerns, we have formulated an attractive package of incentives aimed at increasing the number of quality housing units for sale or rent at an affordable price. The incentives offer urban benefits in the form of increased buildable area, and provide options depending on the specific circumstances and planning of each interested investor.
By way of example, I refer to the pioneering for Cypriot standards "Built-to-Rent" Scheme, which for the first time combines for the first time urban planning incentives together with tax relief, in order to promote housing units in the affordable rental market. Another innovation of the new housing policy is the creation of a Special Fund for Affordable Housing, with the option of buying out the planning incentives and paying a cash compensation.
In addition, in an attempt to address another pathogen of the system, but also in the context of promoting structural reforms to reduce bureaucracy and simplify the licensing of developments, we have decided, as part of the ongoing reform, that all planning applications for the utilisation of housing incentives will be examined by the Director of the Planning and Zoning Department.
Further, taking a holistic approach to the issue of facilitating development permitting, and after consultation with social partners, we have promoted and are implementing a framework of 22 Measures to simplify the issuance of planning and building permits. The Measures focus on modernising development control and reducing bureaucracy by providing enhanced participation for private sector planners, with the aim of promoting timely development and quality service to citizens. The simplification of permitting mechanisms undoubtedly creates more favourable conditions and data for the construction industry and all land developers. At the same time, the acceleration of permitting procedures is a crucial factor for the successful operation of the new Provincial Authorities, which are established by the promoted Local Government Reform. The Framework of Measures is on track for implementation, aiming at full implementation of the Measures on 1 July 2024.
Another relevant major objective of the Government is being implemented by rolling out the procedures for full implementation of the Law on Facilitation of Strategic Development Projects, which was successfully pioneered by the previous Government. With a view to attracting projects of strategic importance, and thereby enhancing the investment profile of Cyprus, the relevant Regulations have recently been submitted to the House of Representatives, which provide for the details of the implementation of the provisions of the Law on the Facilitation of Strategic Development Projects. In the same context, the new Strategic Developments Sector of the Department of Urban Planning and Zoning has already been established and operates, which will offer specialized services to facilitate the licensing of strategic developments.
At the same time, the possibility of online submission of applications for strategic developments through the "Hippodamus" platform highlights the targeted actions of the Government for the modernization of the state. Clearly more needs to be done, we know how to achieve the much-needed modernisation, we are implementing a specific strategy. This is an important reform step, which offers upgraded services and clearly contributes to reducing bureaucracy and speeding up licensing, creating a modern, reliable and friendly environment for investors in our country. The relevant bill was submitted to the House of Representatives in December 2023 and its passage into law will be the culmination of our efforts to positively intervene in the early activation of development sites.
The Government, recognizing the multiple and large economic and social benefits derived from the utilization of the Urban Incentives Plan for business recovery, has extended the implementation of the Plan until the end of this year. The update of the Plan, in addition to making progress towards the economy and investment, also aims to meet our goals of promoting sustainable and sustainable development in our country.
This concept of sustainable and viable development, preserving resources so that they continue to provide for future generations, is an extremely important objective for us. And of course, sustainability is interlinked with the green transition. It is in this context that the Home Secretary is expected to announce in the very near future the Mandate, the policy framework for the siting of Renewable Energy Sources. The framework will, among other things, assist in the other actions and activities we are implementing to achieve our national energy and climate targets, while also being a positive intervention for economic growth.
Today I want to announce two more related actions.
The first one is the implementation of an extensive and comprehensive campaign by the State to upgrade the image of our country at international level. To this end, last week Invest Cyprus proceeded on behalf of the Government with the announcement of the selection of the consultants who will design and implement this campaign, with the aim of enhancing the reputation and prestige of Cyprus at international level. Through the campaign we will showcase the radical changes that Cyprus has made, especially in terms of anti-money laundering and sanctions implementation, demonstrating in practice our commitment to zero tolerance and, at the same time, highlighting those sectors that show potential for investment, including the sector in which you are involved.
The second is part of our efforts to mitigate the problem of the large number of buildings which for various reasons cannot obtain planning permission. We are proceeding in the coming weeks with the preparation of a new revised plan for the provision of incentives for the legalisation and licensing of unauthorised/new construction in approved developments.
The aim of the new plan is to implement specific measures to solve problems of licensing - there are several parallel effects of this problem - of existing unauthorised constructions, but also to implement new similar small-scale constructions in existing approved developments.
The new plan will also cover cases of buildings approved after 29 July 2015, while offering owners the possibility to legalise, subject to conditions, certain modifications made.
Amounts paid through this process will be used to fund affordable housing projects, particularly for the younger generation.
The Government is working methodically and with dedication to enhance the prestige and credibility of Cyprus, to create the right conditions for promoting sustainable and sustainable development in our country, to modernize and reform the state, to support social cohesion, but above all, to ensure the well-being of citizens and improve their daily lives.
Strengthening entrepreneurship and shaping a stable and attractive investment environment in our country is a bet for us that I am absolutely sure we will win, always with your cooperation, for the progress and prosperity that our country deserves. Invariably, our cooperation and your cooperation over time with all Governments rests on a sincere and solid foundation. I am convinced that this is the direction in which our cooperation will continue to be built in the present phase.
I would like to conclude by reiterating that we remain always open to your constructive suggestions for enhancing sustainable development in the country, always in the service of the common good.
(PM/EAth/NYAN)
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Views & opinions expressed are those of the author and/or PIO
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