Cyprus prepares for widespread local government reform

One year ahead of the implementation of a widespread local government reform in Cyprus, various streams of work are already running in parallel so that the municipal legislation is ready to support the new structure.

Following the passing of the relevant legislation by the House of Representatives in Cyprus in 2022, the preparatory phases of a large-scale restructuring of local government are well underway for the new administrative system to be implemented in May 2024. The local government reform contemplates the restructuring of the system of local government, comprising a reduction of the total number of municipalities (to fall from 30 to 20) and the resulting municipalities to be granted more financial and administrative power, autonomy, flexibility and responsibility.

The proposed structure of municipalities and districts in Cyprus following the reforms will be as follows:

• Nicosia District, comprising Nicosia (Ayios Dometios, Engomi and Aglandjia), Lakatamia (Lakatamia, Tseri and Anthoupoli), Latsia-Geri, South Nicosia-Dali and Strovolos;
• Limassol District, comprising Limassol (Limassol and Mesa Yitonia), East Limassol, Polemidia and Western Limassol;
• Larnaca District, comprising Larnaca, Aradippou, Lefkara, Athienou and Dromolaxia-Meneou;
• Paphos District, comprising Paphos, Eastern Paphos, Western Paphos and Polis Chysochous; and
• Famagusta District, comprising Ayia Napa (Ayia Napa-Sotira) and Paralimni-Dherynia.

 

Although the local governments had mixed reactions to the reform plans, the local government reform is expected to bring significant financial benefits and the provision of better quality public services. The proposals, which had previously been fiercely debated by rival political parties in Cyprus for over ten years, were passed by the House of Representatives in March 2022, following mounting pressure from the EU. The passing of the three Bills which made up the local government reform scheme were named by the EU as one of the requirements for Cyprus to receive funding from the NextGenerationEU Recovery and Resilience Facility, which aims to increase EU’s strength following the current economic crisis.

The new ‘Enhancing the Local Government Reform in Cyprus’ project, launched by the Council of Europe and headed by the Centre of Expertise for Good Governance (CEGG), began on 1^st January 2023 and is expected to continue until the 30^th June 2025. The project aims to strengthen the ‘capacity of local authorities to provide good democratic governance and high-quality services to their citizens, according to European Standards”. The CEGG will lead the project, working with the Ministry of Interior of Cyprus, as well as other relevant stakeholders. Throughout, the CEGG will offer policy advice to key authorities, organizing a peer review, updating the National training and Capacity-Building Strategy for the local government, and offer ‘capacity building activities’ to staff and elected representatives of local authorities.

On the 7^th June 2023, the final preparatory phases began as a policy advice report was presented to the Steering Committee, and many major players (including the Unions of the Cyprus Municipalities and Communities, and the Ministry of the Interior) were able to debate their views with experts on key aspects of the report. Following this, the first Training of Trainers sessions were held in order to assist local governments in preparing for the restructuring and increased responsibilities.

The project was presented to representatives and stakeholders at a launch event in Nicosia on the 17^th January 2023, and further policy advice was presented to the project’s Steering Committee on the 7^th June 2023.The progress being made towards the implementation of the new policy reforms is welcome as the country moves closer to the local elections, which are set to take place in June 2024 after they were postponed in late 2021. These elections will also coincide with the European Parliament elections in May 2024, which will prove to be a critical time for the evaluation of the reform’s progress.  

Also, at this point we note that, according to Law 37(I)/2022, which entered into force on 30^th March 2022, with its publication in the Official Gazette of the Republic, on 1^st June 2024, 5 Provincial Self - Government Organisations will be established, one in each province (Larnaca, Limassol, Nicosia, Famagusta, Paphos). The existing Water Supply Boards, Sewerage Boards and Solid Waste Management Boards will evolve and join on 1^st June 2024, a new Provincial Organisation, which will have responsibility for four important services throughout its province, namely water supply, drainage (sewage and rainwater), exploitation and management of Solid Waste and licensing of development (issuance of planning and building permits). Harris Kyriakides is actively involved in the local self-government reform actions and have undertaken the drafting of the Operating Regulations of the above Provincial Self-Government Organisations, which should include combined provisions concerning the responsibilities of the state services and local authorities that are currently charged with the above services. This local government reform aims to establish specialised, efficient and properly structured and staffed public organisations, which will have the required expertise to handle the four most important responsibilities: Water Supply, Sewerage, Solid Waste Management and Development Licensing.

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