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

Cyprus Mail · 2026-07-05

AI SUMMARY

• What happened: The Cypriot government announced a €168 million initiative to combat water shortages, focusing on expanding desalination capacity, maximizing reclaimed water use, and modernizing irrigation networks. • Why it matters: Water scarcity poses significant challenges to agriculture in Cyprus, and this investment aims to ensure sustainable farming practices while addressing climate change and rising production costs. • What to watch next: The government is preparing for the next EU Common Agricultural Policy strategic plan set to take effect in 2028, which will aim to further support rural communities and the agricultural sector in response to evolving challenges.

**Government Investing €168 Million to Tackle Water Shortage, Minister Says**

The government of Cyprus is set to implement a comprehensive €168 million initiative aimed at addressing the ongoing water shortage crisis in the country. Agriculture Minister Maria Panayiotou announced the funding during a recent statement, emphasizing the critical nature of water scarcity in relation to agricultural sustainability, climate change, and rising production costs.

Minister Panayiotou outlined that the new funding package will prioritize three key areas: expanding the capacity of desalination plants, maximizing the use of reclaimed water, and modernizing irrigation networks to minimize water loss. She highlighted that Cyprus currently reuses approximately 90% of its treated wastewater, which is significantly higher than the European Union average. This reclaimed water is vital, as it meets around 37% of the irrigation needs for the country’s agricultural sector.

The long-term vision of the government, as articulated by Panayiotou, is to ensure that all drinking water supplies are sourced from desalination plants. This strategy aims to reserve dam water exclusively for agricultural use, thereby alleviating some of the pressure caused by water scarcity on farming activities.

In addition to the water management measures, Minister Panayiotou also discussed broader investment plans for the agricultural sector, which include a significant €454 million allocation through the EU’s Common Agricultural Policy (CAP). This funding is intended to enhance the competitiveness, sustainability, and resilience of Cyprus' agricultural landscape.

Recent funding calls related to agricultural investment projects and grants for new farmers have generated considerable interest, with over 1,225 applications submitted for subsidies totaling approximately €187.6 million. An additional 134 applications, valued at €16.7 million, are currently being prepared ahead of the upcoming deadline on July 17. The minister noted that investment grants could reach up to €800,000 per agricultural holding, reflecting the government’s commitment to supporting the sector.

Furthermore, Panayiotou mentioned the EU-funded ‘Leader’ rural development programme, which has allocated €3.1 million to the Troodos local action group for various local development projects. This initiative aims to foster rural development and enhance the quality of life in these communities.

Looking ahead, the government is already preparing for the next CAP strategic plan, which is set to take effect in 2028. The intention is to tailor this upcoming programme to meet the evolving needs of Cyprus’ rural communities and agricultural sector, ensuring that the framework remains relevant and effective in addressing future challenges.

As Cyprus grapples with the dual pressures of climate change and water scarcity, the government’s investment in both water management and agricultural sustainability reflects a proactive approach to safeguarding the future of the nation’s farming industry. With these measures, officials hope to mitigate the impacts of water shortages and enhance the resilience of agricultural practices in the face of changing environmental conditions.

Source: Cyprus Mail
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