Source: cyprus-mail.com
Limassol turns to private capital for waterfront climate project
Limassol’s planned regeneration of its coastal waterfront behind the port will be the focus of a November 10 investment dialogue examining how state-backed guarantees and public-private financing can help unlock private capital for major urban development projects.
The event, titled ‘Better Funding Dialogue in Cyprus‘ and set to take place at the Panos Solomonides Cultural Centre from 9.30am to 1.30pm, will bring together municipal and national authorities, financial institutions, investors and businesses to explore how the regeneration of Aktaia Odos can be turned into an investable project.
The discussions will centre on the use of state-backed guarantees, risk-sharing and blended finance to reduce investment risks, lower the cost of capital and encourage private and institutional investors to participate in climate-neutral urban transformation.
The event comes as Limassol seeks to deliver an ambitious investment pipeline under its Climate City Contract (CCC), following its recognition by the European Commission as one of the European Union’s 100 climate-neutral and smart cities.
The city received the European Commission’s EU Cities Mission Label in 2024, based on a Climate City Contract setting out an investment strategy worth approximately €1.3 billion.
The strategy encompasses around 30 actions and 300 projects and activities spanning energy, digitalisation, waste and the circular economy, the coast and port, and the built environment.
However, the municipality is expected to implement directly only around 9 per cent of the investment pipeline, meaning the vast majority will depend on a combination of national and European public funding, government and institutional support, and private investment.
The financing dialogue is therefore intended to address a central challenge facing Limassol’s climate transition, namely how public authorities can use financial tools to attract private capital into projects that might otherwise struggle to secure funding.
Aktaia Odos as a test case for urban investment
Aktaia Odos is among the priority projects included in Limassol’s Climate City Contract and involves the regeneration of the coastal stretch behind the city’s port.
The area has for decades been occupied by ageing industrial waterfront infrastructure and an informal traditional shipyard known as the “Karnagio”, which has effectively cut it off from the rest of the city’s waterfront.
The project forms part of the City Centre Area Scheme, approved by the Urban Planning Council, and envisages a 1.5-kilometre linear seafront park connecting the Marina and city centre with the new port and western development zone.
Plans include a light-traffic public transport corridor, pedestrian and cycling paths, as well as provisions that could accommodate a future tram line if its viability is established.
A first pilot section was inaugurated in September 2025, comprising approximately one kilometre of pedestrian and cycling paths, lighting, new tree planting and a 350-metre stretch of reclaimed beach.
The next phase, considered the most consequential for the project, depends on the relocation of the traditional shipyard to a modern facility elsewhere.
The shipyard continues to play an active role in ship repair and maintenance for Cyprus’ marinas, while identifying a suitable coastal location for its relocation remains a central government responsibility.
The regeneration is expected to create economic opportunities in sustainable construction, tourism and business activity along a prominent stretch of waterfront.
It is also intended to reduce Limassol’s emissions by greening the area and creating space for alternative forms of green transport.
Financing tools and the role of the state
The workshop will examine a range of financing instruments, including green and blue bonds, green and blue loans, Build-Operate-Transfer contracts, public-private partnerships and blended finance.
Particular emphasis will be placed on the state’s potential role as a guarantor, including through public guarantees, first-loss tranches and credit enhancement.
These mechanisms could allow the public sector to absorb early-stage or political risks that private investors may be unwilling to take on, thereby reducing the overall cost of capital and making blended financing structures more viable.
The event is designed as a high-level, interactive roundtable rather than a discussion limited to a single sector.
Participants will include the municipality and national ministries, local and international financial institutions, as well as construction, logistics and mobility companies with commercial interests in the area’s future.
Plenary discussions and smaller breakout sessions, using a World Café format, are intended to identify practical financing pathways, existing barriers and opportunities for collaboration.
The workshop’s conclusions and insights will feed into a wider climate finance conference in Athens in November.
The programme will begin with welcome remarks by Limassol mayor Yiannis Armeftis at 10am, followed by a presentation on financing net-zero cities by Bob D’Haeseleer of ICLEI at 10.05am.
At 10.15am, Dr Loukas Dimitriou of the University of Cyprus will address the green investment challenge, before keynote presentations on financing climate urban transformation by Filip Coenen of the City of Leuven and Aimilia Pistrika of the European Investment Bank at 10.30am.
A coffee break is scheduled for 11am, followed by the breakout discussions from 11.15am to 12.15pm.
Group presentations and next steps will take place at 12.15pm, with the event concluding with a closing session and light lunch from 12.30pm to 1.30pm.
The central question for participants will be how public-sector guarantees, co-investment and risk-sharing can make urban climate projects attractive enough for private and institutional investors to commit alongside the state.