The countdown has begun for the activation of the Development Law following the recent approval of related regulations by Parliament, aiming to ensure the licensing of major projects within 12 months at the latest.
The activation of the Development Law, designed to facilitate the licensing of large-scale developments on the island, is now considered imminent. This follows the approval last week by Parliament’s Plenary of regulations submitted by the Ministry of the Interior.
These regulations establish a range of details for the full implementation of the Law on Facilitating Strategic Development Projects, which was passed in 2023 but remained largely inactive.
Among other things, the package of regulations, approved by a majority vote last Thursday, defines the criteria for a project to be classified as a strategic development project, as well as the qualifications required for an individual to be designated as a project manager for a development deemed to be of strategic importance. Under the Development Law, the project manager will serve as the central point of contact between the applicant and public services. They will be involved from the initial evaluation of the application and will act as the applicant’s sole liaison with all services for licensing purposes. Project managers will be selected by the director of the Department of Town Planning and Housing, who also heads the Strategic Development Sector already established within the department. This selection will be made from a list compiled according to procedures set out in the newly approved regulations.
Within 12 months at the latest
According to the regulations proposed by the Ministry of the Interior and approved by Parliament, for a development to be classified as a strategic project, the applicant must demonstrate, among other things, that their investment will contribute to the labour market. Specifically, the proposed project must create at least 80 new permanent jobs. The goal of the new regulations, which will take effect upon publication in the Official Gazette of the Republic, is to issue all required permits (planning and building) for projects deemed of strategic importance under the law within 12 months at the latest.
During the review of the regulations by Parliament’s Interior Committee, the director of the Department of Town Planning and Housing stated that the proposed regulations ensure the implementation of an expedited licensing process in exchange for a high fee paid by the applicant, without offering any planning or other relaxations. As noted in the Interior Committee’s report forwarded to the Plenary, the Ministry of the Interior deemed the proposed legislative measures necessary to complete and implement the provisions of the Law on Facilitating Strategic Development Projects, following an integrated approach to the matter.
In addition, the Ministry of the Interior considered the approval of the regulations urgent due to the commitments undertaken by the Republic of Cyprus to secure funds from the European Union’s Recovery and Resilience Plan. The Development Law was one of the commitments the country made under the plan it submitted.
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Source: Economy today
