KODAP (Cyprus Oil Reserves Management Organisation), is a non-profit semi-governmental organisation created by the Republic of Cyprus to store a minimum amount of crude oil, in accordance with an EU directive.

The project has passed through the basic evaluation process of the European Investment Bank (EIB) and was deemed 100% appropriate as a choice to be included under the Juncker Plan.

This is the first time that Cyprus is attempting to utilise the Juncker plan, 18 months after it was first implemented. The project is significant and will have additional benefits on the whole of the Cyprus economy.

So far, 26 of the 28 EU member states, with the exception of Cyprus and Malta, have managed to include strategic development projects under the Juncker plan.

The KODAP project in Vasilikos is recognised by the Cyprus government and the EU as an investment with a high added value to the Cyprus economy, since it will decrease production costs on all businesses and households.

In addition, it will allow Cyprus to stop maintaining oil reserves in Greece and Holland. The competitiveness of the Cyprus economy will also increase, and new jobs will be created.

The European Commission presented the results of 18 months of applying the Juncker plan in June: 266 strategic projects have been signed in all of the EU, with a total budget of €108 billion, including private investments. Of these, the EIU through the

European Strategic Investment Fund contributes almost €18 billion in the form of ‘first damage’ guarantees.

This sort of guarantee is crucial in drawing in large private investment funds, even if the loans needed due to the nature of the projects are quite expensive, with interest rates that can reach 6.5%.

The Juncker Plan focuses on removing obstacles to investment, providing visibility and technical assistance to investment projects and making smarter use of new and existing financial resources, mobilising investments of at least €315 billion until 2018.

Source: InCyprus