The government has approved funding for the construction of 703 student residences at the Cyprus University of Technology (Tepak) in Limassol and Paphos, through a €108 million loan agreement with the European Investment Bank (EIB).
The decision, announced by deputy government spokesperson Yiannis Antoniou on Wednesday, is part of the government’s policy to address the significant housing issue, particularly for young people.
Antoniou said that the cabinet approved the finance ministry’s proposal for a loan agreement of up to €108 million with the EIB. The agreement not only covers the construction of student residences but also includes the building and renovation of various academic and research facilities at Tepak.
The proposed loan features a five-year grace period and a 25-year repayment term. In addition, the state will contribute €53 million towards these projects.
Antoniou stressed the importance of the projects in addressing the serious housing problem for young people, adding that the growing demand from both local and international students makes the timely construction of student accommodations imperative.
A total of 703 student beds will be built, with 500 in Limassol and the remaining in Paphos. Antoniou highlighted that the project would improve the students’ access to high-quality higher education and research services, as well as affordable housing.
He also mentioned that the project will create new job opportunities, and increase productivity in the respective areas.
The planned Tepak projects will have an estimated total cost of €178.1 million. On top of that, the Tepak projects in Limassol have been included in the 2024 budget of the education ministry.
