Government investing €168m to tackle water shortage, minister says

The government is rolling out a €168 million package of measures to address Cyprus’ water shortage, Agriculture Minister Maria Panayiotou said, while highlighting broader plans to invest €454 million in the agricultural sector through the EU’s Common Agricultural Policy (CAP).

Panayiotou said water scarcity remained one of the biggest challenges facing agriculture, alongside climate change and rising production costs.

She said the €168m package “focuses on three priorities – expanding desalination capacity to free up reservoir water for irrigation, maximising the use of reclaimed water and modernising irrigation networks to reduce losses,”

According to the minister, Cyprus already reuses around 90 per cent of its treated wastewater, significantly above the European Union average, with reclaimed water meeting around 37 per cent of the country’s irrigation needs.

The government’s long-term objective, she added, is for “all drinking water supplies to come from desalination plants, allowing dam water to be reserved exclusively for agricultural use.”

Panayiotou also highlighted the implementation of Cyprus’ €454m CAP strategic plan, which she said is aimed at improving the competitiveness, sustainability and resilience of the sector.

She said recent funding calls for agricultural investment projects and grants for new farmers, worth a combined €67.5m, had generated strong interest.

More than 1,225 applications seeking approximately €187.6m in subsidies have already been submitted, the minister said, while a further 134 applications, worth an additional €16.7m, are still being prepared ahead of the July 17 deadline.

Describing the response as particularly encouraging, Panayiotou noted that investment grants can reach up to €800,000 per agricultural holding.

She also referred to the EU-funded ‘Leader’ rural development programme, noting that the Troodos local action group – The Troodos Area Communities Development Company – has been allocated €3.1m for local development projects.

Panayiotou said preparations had already begun for the next CAP strategic plan, which is due to come into force in 2028, adding that the government intends to tailor the programme to the future needs of Cyprus’ rural communities and agricultural sector.