The expansion of the Vasiliko port project will receive €18,781,957 in funding as part of the European Union’s financing programme Connecting Europe Facility (CEF), the transport ministry announced on Thursday. 

“The project contributes decisively to the transition towards cleaner forms of energy in the maritime sector, accelerating the decarbonisation of maritime transport and enhancing the sustainable development of Cypriot ports,” the ministry said. 

According to the ministry, the project aims to serve as a core infrastructure hub for Cyprus and the wider region, connecting commercial, energy, military and environmental operations. 

“The project contributes decisively to the transition towards cleaner forms of energy in the maritime sector, accelerating the decarbonisation of maritime transport and enhancing the sustainable development of Cypriot ports”, the ministry said, referring to the sustainability and necessity study that preceded the project, which confirmed the “decisive role of expansion for the viability of the port”.

Dubbed ‘Integrated Modernisation for Port Advancement’ (IMPACT), the project will see the construction of new breakwaters and 2,355 berths, the dredging of the approach channel and the utilisation of available land space. 

Upon completion, its capacity is expected to reach up to 1,772 vessels and transform into an important commercial hub in the Eastern Mediterranean. 

It is one of four port projects which will benefit from financial support of the EU, following a cabinet decision to create a new industrial port at Vasiliko in the Mari area of Larnaca. 

In its January 2025 funding-request to the EU, the Cyprus Port Authority, which is set to take over management of the port, sought for a total of € 38.5 million in funding – €20 million more than eventually granted. 

However, the transport ministry, in its announcement, highlighted the “intense competition” of the funding scheme, highlighting that the available amount in the category in which the authority had submitted its proposal amounted to €1.6 billion, with the total requested amount of co-financing exceeding the available funding by five times. 

The total cost of the port project, set to fall under the management of the Cyprus Port Authority is estimated at a total of € 350 million with a first phase budgeted at €85 million.