Turkish Cypriot Community - Performance

Programme in a nutshell

Concrete examples of achievements (*)

^{(*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.}

Budget for 2021-2027

Rationale and design of the programme

The programme aims to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community.

Budget

Budget programming (million EUR):

^{(*) Only Article 15(3) of the financial regulation.}

  Financial programming:
  + EUR 48.0 million (+ 25%)
  compared to the legal basis *

^{* Top-ups pursuant to Article 5 of the multiannual financial framework regulation are excluded from financial programming in this comparison.}

Budget performance – implementation

Multiannual cumulative implementation rate at the end of 2022 (million EUR):

Annual voted budget implementation (million EUR) ⁽¹⁾:

^{(1) Voted appropriations (C1) only.}

Contribution to horizontal priorities

Green budgeting

Contribution to green budgeting priorities (million EUR):

• The aid programme, governed by Council Regulation (EC) No 389/2006, is strictly related to the reunification of Cyprus and operates along six fixed objectives. Green priorities are not covered by the objectives and the legal base does not have green-specific indicators. The programme does not operate based on multiannual programmes due to its temporary nature; the programmes are annual. Therefore, the programme does not have a logframe with the indicators enumerated above for the multiannual financial framework.
• Even so, the programme has contributed to green priorities through the following initiatives.
• Installed 13.5 kilometres of sewage networks in Nicosia to replace septic tanks that often leaked and contaminated groundwater, and replaced 45 kilometres of sewage networks in Famagusta to correct all the defects in the system which led to the city being plagued with foul smells for years.
• Construction of an irrigation system for the reuse of Morphou/Güzelyurt treated wastewater from the treatment plant. The water used for irrigation in the Morphou/Güzelyurt area was taken from local wells and, due to high salinity levels, the water became increasingly unsuitable for the irrigation of certain crops and less beneficial for the irrigation of others.
• Extension of the Morphou/Güzelyurt wastewater treatment plant to meet needs beyond 2030, when the estimated population will reach 28 000 people.
• Provided 10 air quality monitoring network stations, which form an integrated network measuring air quality across the Turkish Cypriot community, with the aim of monitoring air pollution and taking measures to improve air quality. Based on the results, measures were taken to reduce sulphur levels near two oil-fired power plants and dust from construction works. The stations contain the following equipment:
  • Laboratory container – 20/417969 – EUR 129 800;
  • Air quality stations – 20/416228 – EUR 959 000;
  • Mobile air quality stations – 20/416229 – EUR 207 873 ;
  • Air and fuel quality equipment – 20/417966 – EUR 36 845.
• Provided water sampling and monitoring equipment for the Turkish Cypriot community (EUR 85 347.00). An ‘environmental protection department’ was provided with equipment to undertake quality measurements of water samples from the sea, rivers and lakes. The equipment consists largely of simple, stand-alone mechanical devices that did not require any installation.
• The Koukla water reservoir and wetlands are under rehabilitation to increase the water supply for irrigation and to better protect the natural environment and biodiversity.
• The Koutsoventis-Güngör landfill – the only sanitary landfill in the Turkish Cypriot community – was expanded with the completion of the second waste disposal cell and the establishment of a gas collection system with energy recovery and a leachate treatment facility. These facilities are still very poorly managed and operated by the Turkish Cypriot community, resulting in damage to the assets.
• The Lapithos/Lapta composting facility is under completion, the first in the Turkish Cypriot community, aiming at composting green waste.
• Grants to civil-society organisations, including:
  • The project ‘Marine litter for synergies, capacity-building and peacebuilding’ (total budget EUREUR 268 963.69 out of each EUREUR 255 515.51 EU contribution), implemented between December 2018 and April 2022, aimed to create an enabling environment to reduce marine litter and to equip civil-society organisations and other key stakeholders with the skills and tools to improve the marine environment.
  • ‘Sustainable Vasileia/Karșiyaka’ (total budget EUREUR 66 527, of which EUREUR 59 450 EU contribution) is an ongoing project that started in November 2021 and aims to contribute to the socio-economic development of Vasileia/Karșiyaka by achieving zero waste carbon neutrality by 2030 through: increased lobbying and advocacy to persuade the local community to modify their garbage collection practices and policy to accommodate a recycling program for Vasileia/Karșiyaka; reduction of the Vasileia/Karșiyaka village solid waste by 50% within 2 years while reducing municipal costs and generating income from recycling practices; and integrating an environmental education program with a focus on climate change and recycling at the village school.
  • ‘Environmental education: a path to sustainable development’ (total budget EUREUR 335 887.68 out of each EUREUR 319 093.3 EU contribution) is an ongoing project that started in November 2021 and aims to improve the environmental literacy level of students and teachers of the Famagusta region by contributing to their environmental education. This includes creating and piloting sustainable environmental education models and mechanisms, and increasing the number of volunteers and individuals engaged in environmental activism in the Famagusta region.
• ‘Capacity-building on environment’ – EUR 1.5 million (to be launched in 2023). The project aims to improve and strengthen the capacity of the Turkish Cypriot community to manage environmental projects across their life cycle, with the purpose of protecting the environment and building a green economy.
• ‘Capacity-building on air quality’ – EUR 361 200 million (to be launched in 2023). The project aims to improve and strengthen the capacity of the Turkish Cypriot community to manage and monitor air quality according to EU standards.

Gender

Contribution to gender equality (million EUR) (*):

<sup>(*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:
- 2: interventions the principal objective of which is to improve gender equality;
- 1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;
- 0: non-targeted interventions (interventions that are expected to have no significant bearing on gender equality);
- 0*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.</sup>

The aid programme, governed by Council Regulation (EC) No 389/2006, is strictly related to the reunification of Cyprus and operates along six fixed objectives. Green priorities are not covered by the objectives and the legal base does not have green-specific indicators. The programme does not operate based on multiannual programmes due to its temporary nature; the programmes are annual. Therefore, the programme does not have a logframe with the indicators enumerated above for the multiannual financial framework.

However, the programme contributes to gender equality in the following ways:

• promote the inclusion of women in social and economic life;
• promote EU values and inclusiveness, particularly in schools;
• promote the sustainable development goals;
• support the development of rural/remote areas;
• support the drafting of legal texts on equality issues (lesbian, gay, bisexual, transgender and intersex, anti-trafficking, domestic violence, patients’ rights);
• provide direct support (via grants) to civil-society organisations addressing equality issues (including women, young people, the elderly, people with disabilities, lesbian, gay, bisexual, transgender and intersex, vulnerable groups);
• provide direct support (via grants) to the Nicosia local community to build a shelter for victims of domestic violence and promote gender equality in the local community;
• promote gender equality education, prevention of domestic violence and sexual health education in schools.

Gender equality is considered for the Aid Programme interventions, particularly for the civil-society projects which include a number of specific actions to achieve this goal and various activities where this fundamental human right is mainstreamed. Some examples include: ‘Small and Medium Enterprises grant scheme – SME4’, where a large number of projects are female-led; ‘Startups4Peace’ and ‘IntoBusiness’, where two delivery partners are women’s associations; and ‘Equal Rights for All: Improving Employee Rights’, where the capacity-building activities and assistance also focus on women’s associations and female employees.

Despite these undertakings, because of the mandate and the nature of the Aid Programme to the Turkish Cypriot community, the short- and medium-term impact of these projects in producing positive and irreversible structural changes at society level is not measured. Therefore, the score of the programme would be 0*.

Digital

Contribution to digital transition (million EUR):

The Aid Programme, governed by Council Regulation (EC) No 389/2006, is strictly related to the reunification of Cyprus and operates along six fixed objectives. Green priorities are not covered by the objectives and the legal base does not have green-specific indicators. The programme does not operate based on multiannual programmes due to its temporary nature; the programmes are annual. Therefore, the programme does not have a logframe with the indicators enumerated above for the multiannual financial framework.

Even so, the programme contributes to digital transition the through the following projects.

• ‘Support to cultural heritage monuments of great importance for Cyprus – Phase 7’. The Commission has funded a digital cultural heritage component within the broader cultural heritage project, which is implemented by the United Nations Development Programme. This includes a 3D point cloud, virtual reality interactive equipment, a 360° virtual tour, a multiplayer game and virtual tours of the Othello Tower and an additional 15 sites. The total value of the implemented parts of this project is EUR 168 970. An additional eight virtual tours and a digital reconstruction of one site are planned. Information technology infrastructure for the Statistics Institute in the Turkish Cypriot community (a supply contract for EUR 552 056.00 coupled with technical assistance of EUR 299 579). More than EUR 500 000 were invested by the EU in building the information technology infrastructure of the Statistics Institute, including the personal computer and server infrastructure, such as 31 personal computers, 31 monitors, specialised software, firewalls, cables, printers, cabinets and switches. The technical assistance to the Turkish Cypriot community aimed to develop an information technology system and, through this, to improve the management, coordination and systematic digital transmission of administrative data to be used for statistical purposes.
• Transition to digital broadcasting and freeing the 700 MHz frequency band in Cyprus – a technical assistance to facilitate the transition for (EUR 207 740) and a supply contract for EUR 2 383 878.91. The project will upgrade the digital terrestrial television infrastructure of the main public television channel in the Turkish Cypriot community. This includes the procurement and installation of television transmission and broadcasting supplies. The project will contribute to increased digitalisation of television in the Turkish Cypriot community that will bring improvements in the efficient use of the bandwidth, the quality of the image and audio, capacity for more channels, or the compatibility with computers and internet, among others.
• Technical assistance for deploying an island-wide animal identification and registration database in Cyprus (EUR 207 740.00) The objective of this contract is to provide the European Commission, the Greek Cypriot and Turkish Cypriot beneficiaries with assistance for the preparation of tender documents to procure the necessary supplies and ancillary services that allow deploying an animal identification and registration system that is compatible across communities. The contract also envisages providing ad hoc technical support during the tendering, implementation and acceptance phases.

Budget performance – outcomes

• The programme is implemented in a territory whose existence is not recognised internationally (with the exception of Türkiye) and whose ‘institutions’ should therefore not be strengthened. This means that the Commission is operating with perennially weak partners and this negatively affects the efficiency and effectiveness of our intervention.
• The paradox is that such institutions often have an important role in implementing the policies required for closer integration with the EU acquis, particularly in areas such as animal health and food safety. This unique situation has a certain number of consequences when it comes to programme implementation, including the following.
  • Property rights have to be respected when it comes to works contracts. This limits the scope of our intervention in terms of geographic areas. In addition, the procedure for property clearance (via the Ministry of Foreign Affairs of Cyprus) is long and cumbersome and is delaying the implementation of our works contracts.
  • For almost 10 years, the EU has supported the Turkish Cypriot community with a number of projects related to improving solid waste management, with an overall investment exceeding EUR 30 million. However, major problems remain. The sector is poorly managed and still not socially, financially and environmentally sustainable. Accordingly, the Commission is conducting an overall independent and critical assessment of the past performance of all EU-funded interventions in the waste sector in the Turkish Cypriot community. Depending on the results of this evaluation, the Commission may decide to adopt a more conservative approach with regard to financing future interventions in the field of waste.
  • In the animal health and food safety policy area, the progress in practical implementation of EU standards relies on prior enforcement of relevant legal texts. These, however, are not prioritised in the adoption plan of legal texts by the Turkish Cypriot community, hindering progress and resulting in long delays.
• In an attempt to overcome the challenges explained above, the programme choices reflect a renewed approach towards bringing more tangible and visible impact in the priority areas. The overarching aim is that the proposals that are presented follow a strategic approach based on the key programming principles.
• The modifications will address an improvement in political priority and ownership, finalising projects (i.e. project maturity) through good implementation track records, and sequencing and streamlining the project pipeline appropriately.
• Since the first projects under the 2021-2027 multiannual financial framework for the programme began implementation only in 2022, it is too early to make a meaningful performance assessment. The majority of funds committed from the 2021-2022 annual programmes were allocated for the continuation of projects where we have established a positive impact. The Commission’s staff working document on the results of the evaluation of the Aid Programme was published in 2022 ⁽¹⁾. This evaluation provided an independent assessment and evidence of the progress made during 2013-2018 towards the objectives set in the underlying aid regulation (Council Regulation (EC) No 389/2006). The evaluation concluded that the Aid Programme is highly relevant and, given the specific circumstances of the Turkish Cypriot community context, that overall it is a successful initiative and of high added value.
  The key monitoring indicators have been amended for the 2021-2027 period in order to better target the achievements of the programme, notably in order to render them as tangible and concrete as possible.

^{(1) COMMISSION STAFF WORKING DOCUMENT EVALUATION Evaluation of the Aid Programme for the Turkish Cypriot community (2013-2018) - Publications Office of the EU (europa.eu).}

MFF 2014-2020 – Turkish Cypriot Community

The Programme aims to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community.

Budget

Cumulative implementation rate at the end of 2022 (million EUR):

Performance assessment

• The programme is on track for all the areas of intervention. However, its ultimate success will depend on the will of both sides in the Cyprus dispute to arrive at a settlement. This is a sine qua non for success. The programme assumes that such a willingness to arrive at a solution exists and is building the capacity of the Turkish Cypriot side to integrate in a bi-communal and bi-zonal federation, with adoption of the EU acquis.
• As a particular achievement, the programme succeeded in its efforts to register ‘Χαλλούμι (Halloumi)/Hellim’ as a product of protected designation of origin and laying down the conditions for movement of this product over the Green Line through two measures adopted in April 2021. The Commission will financially support the implementation of the Halloumi/Hellim package in the Turkish Cypriot community, with the stated intention of allocating up to EUR 40 million over the financial years 2021-2024, with EUR 7.5 million already allocated under the 2021 programme, EUR 7.7 million in the 2022 programme and a provisionally earmarked envelope of EUR 10 million in the 2023 programme. This funding comes on top of EUR 35 million spent until 2020 to improve food safety and animal health in the dairy sector, including by ameliorating milk quality and milk collection, registering all farmed ruminants (mainly cattle, sheep and goats), eradicating animal diseases, strengthening the veterinary service, setting up a laboratory, improving farming operations and adapting legal texts. A substantial effort was made in 2022 by DG Structural Reform Support to assist food business operators to prepare for the first protected designation of origin inspections. DG Structural Reform Support has also launched an informal working group on Halloumi/Hellim that will continue to meet regularly in Cyprus, bringing together stakeholders from both Cypriot communities to discuss pertinent issues; DG Structural Reform Support acts as the co-chair and secretariat of the group. Targeted multiannual support will continue to help Turkish Cypriots in the implementation of upgrades to meet EU standards. The projects concerning Halloumi/Hellim brought together both of the Cypriot communities.
• For objective 1, ‘Developing and restructuring of infrastructure’, 263 kilometres of new water supply networks have been financed through the programme, providing high-quality drinking water without traces of rust or asbestos fibres, and 125 kilometres of sewerage pipes were laid to replace septic tanks that often leaked and contaminated groundwater. The new 52-kilometre sewage network in Morphou/Güzelyurt has protected a large groundwater reserve that serves most of the Cypriot population, three wastewater treatment plants were constructed for almost EUR 20 million for Nicosia, Famagusta and Morphou/Güzelyurt, and 10 air quality monitoring network stations were provided, which form an integrated network measuring air quality across the Turkish Cypriot community. A new shelter for survivors of domestic violence was constructed in Nicosia and handed over in 2022, providing a safe space for up to 12 women and their children. A community centre worth EUR 1 million was constructed in the Maronite village of Kormakitis to serve as a multicultural event venue for all Cypriot communities, which will open in spring 2023.
• As part of objective 2, ‘Promoting social and economic development’, the programme assisted the Turkish Cypriot community in implementing upgrades to meet EU standards in the areas of food safety and animal health and in the prevention, detection and elimination of animal diseases. Given its economic importance, support to the Turkish Cypriot community agricultural sector continued with the implementation of farm advisory services targeting farmers and farmer organisations, and 55 rural development grants proceeded to the final stage of implementation, producing visible results in modernising agricultural practices.
• The Commission continued to implement economic support packages to small and medium-sized enterprises. Grants worth EUR 10 million were disbursed during 2020-2022 to help 2 400 businesses cope with the economic repercussions of the COVID-19 crisis. This includes 2 300 micro and small businesses – from cafés and hairdressers to small and medium-sized enterprises active in business-to-business services, manufacturing and industry – received grants of EUR 1 500–2 000 to stay afloat. Another 100 larger small and medium-sized enterprises received grants of up to EUR 60 000 and in-kind support to innovate, generate jobs and grow. A total of 2 560 enterprises have received EU support in the form of a grant since the beginning of the Aid Programme.
• Overall, EUR 55 million have been invested since 2006 to support small and medium-sized enterprises, which dominate the Turkish Cypriot economy. More than 160 grants worth EUR 18 million were disbursed since 2008 to small and medium-sized enterprises and start-ups to support innovation and competitiveness, the green and digital transitions and compliance with EU standards, with recent grants amounting to an average of EUR 185 000.
• In spite of challenging circumstances, the innovative entrepreneurship and dialogue project achieved outstanding results in supporting over 1 000 participants. Up to 16 innovative starts-up from both communities were trained every year to become commercially successful and to pitch ideas in final competitions, with the winners attending the world’s leading start-up event ‘Slush’ in Helsinki in 2022.
• A total of EUR 5 million were provided in COVID-19-related medical support in 2020 for emergency medical equipment and supplies including vital testing equipment, ventilators and personal protective equipment, as well as for expert advice on response mechanisms and vaccination and testing strategies.
• Under objective 3, ‘Fostering reconciliation, confidence-building measures and support to civil society’, more than 123 cultural heritage sites have been conserved, structurally supported, physically protected or restored across the island with EU funding. The programme supports strengthening civil society as a key factor in developing a culture of dialogue, participation in community life and promotion of the values of tolerance, peace and active citizenship – along with reconciliation, a closer relationship and trust between the Turkish Cypriot and Greek Cypriot communities. Close to EUR 36 million were provided during 2006-2022 to the bi-communal Committee on Missing Persons and more than EUR 24 million in support given 2011-2022 to the bi-communal Technical Committee on Cultural Heritage (representing around 75% of their budget).
• Under objective 4, the programme supported a significant number of researchers and students with grants and scholarships to attend universities in EU Member States and the first Turkish Cypriot with an EU scholarship was admitted to the College of Europe in 2022. By the end of 2022, more than 2 000 scholarships for Turkish Cypriots were financed with a total of over EUR 38 million, allowing them to study at university or do an internship in a Member State. Currently the alumni are forming a network to stay in touch and take an active role in the Turkish Cypriot community. The EU scholarship programme for Cypriot youth with the United World Colleges was launched in 2019, providing so far 28 young Turkish Cypriots and Greek Cypriots with scholarships to complete together a 2-year International Baccalaureate course at one of the United World Colleges, which aim to unite people for peace and a sustainable future.
• Under objectives 5 and 6, the Technical Assistance and Information Exchange Instrument remains an important contribution to the Aid Programme, with continuous support provided to help Turkish Cypriots draft over 240 legal texts in line with EU standards, provide assessments and produce studies, speak at workshops explaining the EU acquis, organise study visits for Turkish Cypriots to EU Member States. This support was provided through a combination of online and onsite missions and study visits across 12 thematic areas or sectors of the EU acquis to facilitate the reunification of Cyprus. The EU also provided regular assistance by health experts in the context of the COVID-19 pandemic. Technical Assistance and Information Exchange Instrument experts provide support to trade and certify the compliance of goods traded over the Green Line with EU standards.
• The value of Green Line trade continued to increase and, in 2022, almost tripled from the previous year’s values to around EUR 14.7 million, compared with EUR 6.2 million in 2021, making this the highest-ever result. Apart from the existing trade of fresh fruit and vegetables, honey and fish, in 2022 six types of processed food of non-animal origin crossed the Green Line for the first time (namely olive oil, tahini, halva, carob syrup, jams and fruit juice) and we expect more in the very near future. Technical Assistance and Information Exchange Instrument experts have been a main driving force in ensuring EU-level standards and quality. The EU also worked on removing obstacles to Green Line trade by ensuring a smooth implementation of the newly-established inspection regimes, which now require phytosanitary certificates for all fruits and vegetables. Another reason for the increase of trade is the devaluation of the Turkish lira, which renders products sold in the Turkish Cypriot community cheaper than products in the Republic of Cyprus.

Contribution to the sustainable development goals