Action Plan for Growth - 3rd Progress Report June 2016_Annex by Presidency - Unit for Administrative Reform, Republic of Cyprus

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

PART A Actions implemented by/with the support of the Unit of Administrative Reform of the Presidency

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Achieving balanced growth Action 1.1 Assessment of the institutional framework of the tourism sector.

Authority Presidency/ MECIT

Description -

Assessment of the institutional framework of the Tourism sector, undertaken within the framework of the functional review of MECIT.

Start/Finish Date Q2 2015 Q4 2015

Progress The assessment of the institutional framework was undertaken within the framework of the functional review for MECIT. In addition, the relevant legislation was assessed within the framework of the work undertaken by the Presidency and MECIT for the simplification of procedures, which started in Q2 2015 and ended in December 2015. (see Action 4.5 (a)). The drafted legislation is expected to be submitted to the Parliament by December 2016. Also, work is underway by the Presidency for the establishment of a Deputy Ministry for Tourism. A relevant draft bill soon be forwarded for final legal vetting while the structure, responsibilities, as well as an action plan for the establishment of the Deputy Ministry are currently under preparation.

1.2 Development of a National Tourism Strategy.

Presidency / MECIT

- Commission a study for the development of a national Tourism Strategy to external experts, including an action plan with timeframe for the implementation of the strategy

S: Q1 2016 Contract Signing

The Tender was awarded to THR Asesores en Turismo, Hoteleria y Recreaction S.A. The study is currently in progress.

F: Q3-2016 â&#x20AC;&#x201C; Conclusion of the study

The Inception Report was submitted in February 2016 whilst the Interim Report was submitted in June 2016. The consultants carried out wide consultations with private and public sector stakeholders through interviews and focus groups as well as strategic sessions with the Project Management Team. The Final Strategy and accompanying Action Plans are expected to be delivered by end September 2016.

1.3 Improvement of the Research & Innovation

Presidency

On the basis of the findings of the study by the National Committee for Research, Innovation and Technological

S: Q1 2015

The Unit for Administrative Reform has formulated a proposal for the restructuring of the current governance system, taking into account the findings of the Strategy by the NCRITD. The proposal

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Governance System.

1.4 Monitoring of International benchmarking reports and indicators.

Development (NCRITD) regarding the institutional framework, formulate proposals for the restructuring of the current governance system.

Presidency

A new competency, the monitoring of international benchmarking indicators (e.g. Doing Business Reports and World Economic Forum Competitiveness Reports) established at the presidency. Undertake a competitiveness benchmarking exercise to determine how Cyprus performs in terms of international competitiveness across a range of indicators and examine the possibility of issuing on regular basis regular competitiveness reports.

was submitted for political consideration. The Government continues with the existing structures, aiming at the timely implementation of the Smart Specialization Strategy and utilization of the Structural Funds to this effect, pending final decisions on the matter. S: Q1 2016 â&#x20AC;&#x201C; Report Outline F: Q4 2016 Draft Competitive ness Report Ongoing

A proposal on the Outline (structure and indicators selected) of a Competitiveness Report, containing benchmarking analysis based on selected indicators, to be published annually, was prepared. The aim of the report will be to provide an analytical tool for assessing the performance of Cyprus, to facilitate the dialogue with the private sector, as well as to contribute to setting the agenda for reforms aiming at competitiveness improvements. The Outline of the Report was presented to the National Economic Council, the Fiscal Council and other representatives of the academia in February 2016. The comments received during the presentation were incorporated in the finalised Outline of the Report. The collection of data for the indicators to be included in the Report as well as the drafting of the first sections/chapters, are currently underway.

1.5 Prioritise competitiveness challenges. 1.6 Identify policy actions.

Presidency

1.7 Improve Cyprusâ&#x20AC;&#x2122; rankings in global indices.

Presidency

Prioritise competitiveness challenges facing the business sector over the medium term. Identify relevant potential policy options as to how these priority challenges will be addressed. Examine the possibility of introducing a mechanism, in coordination and collaboration with the private sector, with the aim to identify and propose reforms that will improve the rankings of Cyprus.

Ongoing

See action 1.4 & 1.7.

Ongoing

See action 1.4 & 1.7.

Ongoing

A mechanism has been put in place to improve the rankings of Cyprus starting with the World Bankâ&#x20AC;&#x2122;s Doing Business Indicators. In close cooperation with all relevant public and private sector entities including CIPA, the problematic areas and bottlenecks per indicator that have a negative impact on the rankings of Cyprus have been identified and specific recommendations for improvements have been formulated for each one. This process

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

started in relation to the 2016 World Bank Report and is now ongoing in relation to the 2017 Report. It is noted that according to the latest Doing Business report for 2016, published in October 2015, Cyprus has moved up 13 places to become one of the top ten most improved countries in terms of economic and business reforms. Specifically, Cyprus showed improvements in the sectors of getting electricity, getting credit, paying taxes, enforcing contracts, and resolving insolvency. 1.8 Promotion of measures for enhancing Cyprus’s export performance.

Presidency/ Trade ServiceMECIT

Conduction of a Study for enhancing Cyprus' export performance. The Study aims to:  Identify untapped opportunities of products and markets for export activity.  Assess Cyprus advice, promotion and facilitation services and instruments, taking into account international good practice examples.

Study: S: Q4 2015 F: Q2 2016 Implementa tion of the recommend ations: S: Q3 2016 Ongoing

A study on improving the export performance of Cyprus was commissioned with the support of the Structural Reforms Support Service (SRSS). The contract was awarded by SRSS to the German company GFA. A Steering Committee was set up to monitor the progress of the study (Unit of Administrative Reform, Ministry of Energy, Commerce, Tourism and Industry, Ministry of Finance, Ministry of Foreign Affairs and Ministry of Agriculture, Rural Development and Environment). A fact finding week mission took place in March whereby around 30 interviews were conducted with private and public stakeholders. The Draft Report was th presented to the SC on 17 May. CY comments were submitted to th GFA on 27 May whilst the Final Report which includes an Action Plan, was submitted on 15/7/16. The expert’s recommendations are being evaluated by the Steering Committee and submitted for political decisions on the next steps.

Facilitating Investment Action 2.1 Introduce a Law for Attracting and Facilitating Investment.

Authority Presidency

Description Establish a legal framework for accelerating investment procedures and ensure transparency for major projects.

Start/Finish Date S: Q1 2015 F: Q1 2017

Progress The project, financed by SRSS, to prepare the legal framework for fast tracking major investment in Cyprus was completed in October 2015. The deliverables were a study with concrete proposals on the mechanism to be put in place and a draft

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

2.2 Revise the policy framework for promoting investments.

Presidency

Take action for introducing an integrated investment promotion policy and strategy with clear and measurable goals (focused & prioritized, KPIs).

S: Q4 2015 F: Q4 2017

2.3 Simplification of procedures for the employment of highly qualified third country nationals.

MI/MLWSI/ Presidency

 Introduction of a fast track procedure for the recruitment of highly qualified employees from third countries.

S: Q4 2014 E: Q2 2017

2.4 Improve Investor Journey’s for major investments.

2.5 Identification of eligible and mature projects to be

Presidency / CIPA

Presidency MOF

 Examine the possibility of introducing a start-up visa  Prepare Investor Journeys for categories of investment

S: Q4 2015 F: Q1 2016

legislation. In view of the decision for the creation of a Deputy Ministry for Growth, it was decided to amend substantially the proposed legislation. A revised draft legislation has been prepared and is currently under consultation and is expected to be sent for legal vetting soon. The new procedural and legal framework on the strategic investment, including the set up of a fast track mechanism, is expected to be put in place at the beginning of 2017. The undertaking of a study for investment promotion is under consideration. A seminar was undertaken with an Irish expert in December 2015 on how to promote investment. This will be considered also in the framework of the discussion of the setting up of the Deputy Ministry for Growth and the future role of CIPA. A working group (PRES – MOI- MLWSI) has started the review of the procedure that is currently being followed for the employment of highly skilled third country nationals, in order to be simplified as much as possible, so that it doesn’t constitute a burden to investors. The possibility of introducing a start up visa scheme is currently under examination, within this framework. Investor’s journeys for the main categories of projects have been fully mapped, covering all the licensing procedures which an investor has to follow for the construction and operation of such investment projects in Cyprus. This is considered as a very useful tool which will provide, at a first stage, complete information and clear guidance to investors regarding the steps they have to follow for the implementation of a project (including estimations on the timeline) and, at a second stage, will facilitate the identification and promotion of simplifications in order to streamline the licensing procedures, where possible.

 Propose simplifications to the Investor Journeys

Ongoing

 Prepare Investor Guide

S: Q4 2015 F: Q1 2016

A general Investor’s Guide was prepared with CIPA having the leading role.

A task force was created by the MOF and the Unit for Administrative Reform of the Presidency to identify projects

S: Jan 2015 F: Ongoing

The Unit of Administrative Reform has cooperated with the MoF on the dissemination of information and on the identification of eligible projects. Many projects have been submitted by various

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

submitted by Cyprus for financing under the Investment Plan for Europe.

that are eligible and mature for submission to the Investment Plan for Europe, for financing. In addition the task force is mandated to identify and assist, where feasible, in the maturing of other eligible projects which face a number of bottlenecks that need to be addressed before being able to be submitted for financing.

Ministries, the semi- public sector and the private sector, mainly in the following sectors: Energy (natural gas development and interconnection with neighboring countries), Renewable Energy, Energy Efficiency, Environment (e.g. waste management), Ports and Marinas (Larnaka and Vassilikos), Information of Technology and Communications, Research and Innovation and upgrading of the tourism product. For the more mature and eligible projects submitted, the European Investment Bank (EIB) is in consultation with the public and private project promoters. Two problems have not allowed having an approved project yet: a) some eligible projects are not very mature and b) the high interest rates offered in the case of Cyprus, due to low ratings of the economy from international credit rating agencies, inhibit the interest of the private sector. The first Cypriot project is expected to be approved by the end of the year. A request for a Workshop to assist Cyprus to identify cross border projects with the assistance of the European Investment Advisory Hub of EIB was made to the EC and a response is pending.

Entrepreneurship Action 3.1 Develop a Strategic Framework for Promoting Entrepreneurship and Enhancing SMEs Competitiveness.

Authority Presidency /MECIT

Description Develop a National Entrepreneurship Policy Statement. The actions included in the Policy Statement will contribute by facilitating, supporting, complementing and linking the initiatives already undertaken by the private sector and the enterprises themselves.

Start/Finish Date S: Q4 2014 F: Q4 2015 Implementation ongoing

Progress A National Entrepreneurship Statement has been formulated on the basis of an extensive consultation with all the competent Authorities and the key stakeholders of the entrepreneurial ecosystem in Cyprus and was endorsed by the Council of Ministers in December 2015. The Statement identifies five priority areas which are addressed with concrete actions, as part of an action plan with a horizon up to 2020. The actions focus on the creation of the necessary infrastructure, conditions and incentives for entrepreneurial growth. The priority areas of the Policy Statement are the following

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

areas:  Cultivating the Entrepreneurial Culture.  Improving the Business Environment.  Enhancing the Entrepreneurial Innovation.  Facilitating Access to Finance.  Improving Access to Markets. Following the endorsement of the Policy Statement by the Council of Ministers in December 2015, a Steering Committee has been established with the participation of the competent public authorities, as well as representatives of key stakeholders from the private sector, with the view to monitor closely and assess the progress in the implementation of the actions promoted under the Policy Statement. Furthermore, a project manager has been appointed for each and every action included in the Policy Statement. 3.2 Improve regulatory framework for business set up / operation.

3.3 Establishment of an Entrepreneurs Office and a web portal for business.

Tax D/DOCR/ SIS/MOF/Presi dency

Simplifications and improvement of existing legislative framework for businesses (e.g. Tax Department, Company’s Registrar, Social Insurance Services)

Ongoing

Simplifications are under way in these key Departments.

Presidency

Design and introduction of the SME Test, in the context of the Impact Assessment for new legislation.

S: Q4 2014 F: Q4 2016

The review of the existing IA framework in Cyprus is in progress, as well as the study of IA and SME Test mechanisms in place in other Member States (e.g. UK, IE, BE, DE). Suggestions for the reform of the existing IA mechanism and the introduction of an SME Test are under preparation, with the help of the EC resident expert on business environment issues. Also in cooperation with the Statistics Department a methodology to measure administrative burden to enterprises is under preparation.

Presidency/ MECIT

Establish a support center and a relevant portal for the promotion of entrepreneurship in Cyprus, with special emphasis to support for start-ups, and

S: Q4 2014

Linked to Actions in Better Regulation. Following preliminary consultation with the private sector a study was undertaken for the operational planning and set up of an Entrepreneurial Centre responsible for: (a) first point of contact for licensing, (b) information for access to finance and (c)

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

assist major investments.

general and tailored made support for new entrepreneurial activities. The final report was submitted in February 2016. Final decisions are pending, linked also to the creation of the Deputy Minisry for Growth.

3.4 Examine the possibility of Introducing a “Zero Licensing” programme for the establishment of small wholesale or retail businesses.

Presidency

Examine the scope of introducing “Zero Licensing Programme” on the basis of best practices.

S: Q2 2015

3.5 Formulate a policy/legal framework for Social Entrepreneurship.

Presidency/ MLSI

Determine definition of social enterprises in Cyprus and preparation of a policy framework for the growth of social enterprises.

S: Q3 2015 F: Q4 2016

3.6 Enhance access to finance.

MECIT / MOF/ DGEPCD/ Presidency

 Systematic review of the existing financing mechanisms (grants and financial instruments supported by EU and/or national funds) to identify unutilized opportunities for Cyprus’ businesses and individuals and measures to promote the use of funds from such instruments.  Promote development of alternative forms of financing and relevant awareness.

S: Q4 2014 On-going

An analysis is being undertaken on what the portal for business will include. It will operate under Ariadni (see action 5.9 below). The portal will be an upgrade of the PSC portal. The system that is under formulation in Greece was examined during a study visit in the relevant Ministry of Development in January 2016. The system in Greece is still under preparation with World Bank assistance. It was decided that the existing legal framework in Cyprus first needs to be consolidated and then proceed to more drastic measures like zero licensing. Thus it is considered that it is premature to go ahead with a zero licensing policy at the moment. Consultations with the public and the private sector were undertaken in order to identify the necessary actions for enhancing social enterprises in Cyprus. For this reason, an Inter-ministerial Committee (Presidency, MoF, MECIT, MLSI) was formed. In June 2016 a roundtable discussion took place, where the definition of social enterprises was discussed as well as measures to foster social enterprises in Cyprus.  The simplification and improvement of procedures for the access and use of financing schemes for SMEs is promoted under the National Policy Statement for Entrepreneurship (See action 3.1).  Discussions are taking place with competent authorities (MoF, DG EPCD) for the better coordination and streamlining of funds available, mainly through banks (e.g. CYPEF), or promoted to support SMEs (e.g. ex-ante assessment for financial instruments / mechanisms to be developed in the 2014-2020 p.p.).  MOF in cooperation with the Presidency is in consultation with stakeholders from the private sector in order to identify the need for promoting the introduction of alternative forms of finance, e.g. Crowdfunding, venture capital. In this context,

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

the MoF organised in May 2016 a conference on the Capital Markets Union - a European Union project aimed at enhancing growth, investments and alternative sources of finance, including, among others, crowd funding. The purpose of the conference was to raise awareness on all the initiatives taking place at the EU level and to promote further and constant dialogue with the relevant stakeholders on what should and can be done in Cyprus on the matter. In cooperation with the Presidency, other ministries, competent authorities and the industry itself, there will be an effort to formulate a strategy and an action plan, based on the discussions held during the conference and more bilateral / trilateral discussions which will take place in the future. Such a plan will aim at increasing and diversifying the sources of financing, complementing the financing provided by banks.  A total of ten banks have benefited from the granting of €500 million Government Guarantee to the European Investment Bank (EIB) for the conclusion of Loan Agreements to Cypriot Banks for the financing of SMEs and Mid-Caps in Cyprus.

 The European Bank for Reconstruction and Development (EBRD) implements a programme for providing business advice and support for Cypriot small and medium-sized enterprises (SMEs) while in parallel strengthening the local consultancy market.

Smart Regulation Action 4.1 Formulation and coordination of implementation of a n Action Plan for Better Regulation.

Authority Presidency

Description The aim is to identify existing burdensome procedures and promote simplifications in as many Public Services procedures which relate to and affect the setting up and operation of business activity in the country, in

Start/Finish Date On going

Progress The Action Plan was approved by the Council of Ministers in October 2015. The first Progress Report will be submitted to the Council of Ministers in July 2016.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

combination with the promotion of egovernment measures where possible. The Action Plan is formulated around three priorities: (a) Simplification of procedures and legislation – reducing administrative burden, (b) Better lawmaking and impact assessment and (c) Cultivation of culture and development of relevant skills.

4.2 Establish a mechanism for implementing smart regulation.

Presidency / All ministries

4.3 Improving (Simplifying or Eliminating) Administrative

Presidency / All ministries

In addition, the Action Plan includes the development and implementation of the SME Test, as part of the overall Impact Assessment mechanism, with a view to taking into consideration all possible impacts, especially on SMEs, when drafting a new legislation. The intention is to examine the use of mitigation measures for small and micro enterprises, taking into consideration the structure of the business environment in Cyprus. Best practices from other Member States, are being examined, and to this effect exchange of experiences with two member states has taken place.  Establish an Ιnter-ministerial committee that monitors the implementation of better regulation actions  Training activities on better regulation  Upgrade of better regulation website  Compiling a stock of regulations, affecting mainly businesses, identifying burdens, inconsistencies,

S: Q4 2014 Ongoing

Coordination with all stakeholders (PAPD, Commissioner for Legislation, Ministries) took place in order to define roles. Liaison Officers have been appointed in Ministries/Organisations. Roundtable discussion took place on 25/4 on how to define and strengthen the role of Liaison Officers.

S: Q4 2014 Ongoing

An initial assessment was undertaken to identify key burdensome sectors, that were not already covered in the Action Plan. In this framework, 2 Departments were selected in

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Procedures.

ineffective ones.  Consulting with stakeholders to identify most burdensome obstacles to businesses/ assess the most important ones. On selected priority areas: a. Individualized regulation assessment and decisionmaking regarding to eliminate/ consolidate/ simplify it and thus make it less costly. b. Awareness campaign for all stakeholders (business, economic and social partners, House of Representatives.

February 2015 for proceeding with the project of simplification of procedures: (1) the Civil Registry and Migration Department (CRMD) of the MoI. A training programme for the officers involved in the projects from both Departments, took place in May 2015, following which, they started mapping the preselected procedures, recording the relevant legislation, the problems faced by the Departments, possible burden on enterprises arising from the procedures and recording possible measures to be taken in order to simplify these procedures. Similar projects may be carried out in other priority sectors as well in the future. This is an ongoing exercise and other Department/sectors will follow.

4.4 Setting guidelines for new regulations, respecting better legislation principles. 4.5 (a) Modernisation and simplification of tourism regulatory framework.

Presidency Legal Service CAPD

Introduce revised guidelines so that all new legislative acts follow smart regulation principles.

S: Q4 2015. F: Q4 2016

Revised guidelines are being prepared by the Legal Service in cooperation with the Presidency. Training is being organized in cooperation with CAPD.

Presidency MEICT

S: Q4 2014 F: Q4 2016

4.5 (b) Simplification of regulatory frameworks for planning and building permit.

MOI Presidency

 Map and assess the regulatory framework of the tourism sector,  identify aggravating, and anachronistic provisions that inhibit the promotion of entrepreneurship, competitiveness and development,  Process reengineering etc. The Ministry of Interior is expected to get technical assistance, for delivering a new legislation framework to replace the existing building legislation framework implemented in Cyprus related with the building and planning permit procedures (i.e. the Town and Country Planning Law as well as the Streets and Building Law). Among others it will take into account risk analysis to introduce categorization of

The Presidency, in cooperation with MECIT, commissioned a study for providing proposals for simplification in procedures and reduction of administrative burden by at least 25%. The study was completed in Sept 2015. Consultations were undertaken thereafter and political decisions are pending in order to make final amendments and proceed with the legal vetting of the revised legislation. The technical assistance project has been severely delayed. From latest communication, expected start timing is within July.

S: Q3 2016 F: Q4 2017

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

buildings according to their importance and the magnitude of impact on society and the environment if failure occurs. It is anticipated that the lead-time for the project is 12 months from the time of the signing of the contract. 4.5 (c) Simplification of environmental permits.

Environment Service

 

Simplification of EIA Law. Simplification of procedures for environmental permits.

S: Q2 2016 F: Q4 2017

Presidency

The Department of Environment is in the process of assessing the sectoral permits as well as the procedures of the environmental impact assessment of projects, so as to lessen procedures and minimise the number of permits given. A new legislative proposal for EIA has been prepared that will streamline assessments and simplify procedures which is currently under public consultation. The proposal will be open for public consultation until the end of July 2016. The final draft will be sent to the Law Office for legal drafting by August with a view to its submission by October 2016 to the Council of Ministers for approval and subsequently to the House of Parliament for adoption. Regarding sectoral permits, in the context of technical assistance provided by the Structural Reforms Support Service (SRSS), a scoping meeting between the Department of the Environment and the Scottish Environment Protection Agency (SEPA), was th th held on 16 and 17 of June 2016, in order to promote a new legal framework towards a single environmental permit.

4.5. (d) Simplification of priority procedures of the Social Insurance Services. 4.5. (e) Modernisation and simplifications in the Civil Registry and Migration Department.

MLSI/ Presidency

CRMD/Preside ncy

 Selection of 3 key procedures to be simplified.  Mapping and simplification of procedures.  Preparation of an Action Plan for the modernisation of the Department.  Mapping and simplification of key procedures.  Consolidation and modernisation of legislation.

S: Q2 2015 F: Q1 2017

The procedures were mapped by the Department following relevant training (see Action 4.3). The simplification of procedures is under way.

S: Q2 2015 F: Q4 2017

The Action Plan has been prepared. The procedures were mapped by the Department following relevant training (see Action 4.3). A technical assistance project was initiated in March 2016 and the project for simplifying procedures is under implementation.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

4.6 Review of the existing tax legal framework for businesses.

MoF Presidency

4.7 (a) Introduce “Open Data” Policy.

PAPD/ Presidency

4.7 (b) Consolidation and availability of laws, regulations, decisions of the Supreme Court etc, through a public website for easy access by citizens and businesses.

Presidency

In view of the implementation of the Think Small Principle, examine the possibility of excluding SMEs (or micro enterprises) from the obligation to undertake audits and reduce financial reporting burdens for these firms. The use of public sector information (PSI) is an important tool that, if used properly, can contribute to economic development. Implementation of the new Law that transposes the EU Directive for the easy access to public information through the publication of information from 80 public services in the website http://www.data.gov.cy/

S: Q2 2015

Specific recommendations were discussed with the Ministry of Finance but no decision has been taken yet.

S: Q1 2015 F: Q4 2016

Technical Assistance was granted for this issue through the SRSS and the contract was signed with Deloitte Ltd in August 2015. The project is expected to be completed by October 2016.

The consolidation of laws and regulations and easy access to them fulfills the right of knowledge and easy access of those that are affected by legislation and offers easy to read texts, enhances legal certainty and facilitates transparency and application.

S: Q3 2015 F: Q4 2016

Two thirds of data have already been published – completion by June 2016 and quality control. Seminar for private sector to be held in June 2016 and Hachathon in Sept 2016. st

The 1 Open Data Forum was held at the beginning of June 2016 with the aim to provide information to the private sector about the opportunities existing from the PSI re-use. Press releases and articles have been published for the aforementioned events. A relevant proposal is under review for a possible cooperation with the Cyprus Bar Association regarding the consolidation of legislation, since the CBA is already operating and updating a publicly available database that contains most of the required information.

Digital Strategy and E-Government Action 5.1 Review and redefine the existing national ICT/ egovernment structure and

Authority Presidency MOF MECIT MCW

Description Assess the effectiveness of the existing ICT and e-government structure. Consultation with all relevant authorities/ stakeholders.

Start/Finish Date S:Q1 2015 F: Q2 2015

Progress Done. It was decided that this action would be part of the functional review of the Ministry of Transport, Communications and Works. The final report of the experts was submitted at the end of

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

the responsibilities of each of the involved actors.

Appoint one single authority for the development and implementation of ICT/ e-government strategy.

November 2015. The main suggestion regarding the ICT/ egovernment structure is that the new structural arrangements should be given a period of operation of 24 months in order to assess how they function. The report also includes a suggestion for further changes to the structures after the 24 months, in case the new structural arrangements are in the meantime judged as not sufficient. New structural arrangements: A Digital Strategy Group was created, by decision of the Ministerial Council of 3rd of June 2015, in which relevant stakeholders of the public, academic and private sectors participate. The Group was charged with reviewing the Government’s structures for the Digital Strategy. The Council of Ministers on 13 of May 2015, decided to replace the Executive Computerization Board with the E-government Board, with representatives at the highest level. The objective of the e-gov board is to approve all the e-gov actions, monitor the progress of the e-gov actions and give solutions on significant problems that affect the implementation of e-gov actions. (see 6.5 below).

5.2 Coordinate and monitor the implementation of the actions of the e-government strategy.

Presidency

5.3 Establishment of a Call Center which will act as a teleservice single point of

Presidency PAPD

Coordinate and monitor the egovernment strategy.

S: Q1 2015 – continuous

Re- engineer processes for enabling the effective delivery of e-government services.

Define the services to be offered via the Call Center. Decide the way the call center will be operated and accordingly prepare an

S: Q4 2014 F: Q1 2017 (phase II)

Τhe Council of Ministers, on 13/05/2015 decided to replace the Executive Computerization Board with the E-government Board, with representatives at the highest level (President: Deputy Minister and Members: Minister of Finance, Minister of Transport, Communications and Works, Digital Champion and Director of DITS). The E-government Board approves all the egov actions, monitors the progress of the e-gov actions and gives solutions on significant problems that affect the implementation of e-gov actions. Also it takes political decisions regarding e-gov. The E-government Board is supported by the Presidency Unit for Administrative Reform (e-government team). The Call Centre is implemented in two phases: Phase 1: As of 02/03/2015, the Call Center is operated by the Citizen Service Centers (CSC). Citizens/businesses can call the number 1434 nationwide to have the following services:

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

contact (SPOC).

5.4 Introduce “e-signature and eID” policy and assess - the “Electronic Certification System of the State”, in order for the state’s system to be able to support electronic signatures and other electronic security services.

RFP.

Presidency

Assess the state of implementation of the Electronic Certification System in consultation with the relevant governmental departments as well as private sector stakeholders, and decide on the need for future steps.

i) Information on the procedures for the 97 services already provided by CSC. ii) Submission of applications for 18 services (from the 97 services), through telephone. iii) Information on the status of requests for a number of services provided by CSC. Phase 2: This concerns the operation of a permanent integrated solution for Contact Center, which will be operated by an external operator, using the number 1434. The completed Contact Center will be a communication center that will accept applications from multiple communication channels (telephone, SMS, email) and will provide the following services: (i) Information on the procedures for all the services that the public sector offers to citizens/businesses (around 600 services have been recorded so far). (ii) Information on the status of requests for specific services (iii) Information on the contact details of all government bodies (e.g. phones, poGstal addresses, URLs, etc.) The Contact Centre is expected to start its operation in March/ April 2017, which includes a 4-month period given to the Contractor for preparation, after the contract is signed. The tender documents have been prepared and a technical dialogue was conducted with economic operators who expressed an interest. The tender documents were then modified accordingly and submitted to the Treasury for quality review. Upon receipt of approval by the Treasury, PAPD will proceed with procuring the competition. S: Q1 2015 F: Q2 2015 (Phase I)

Phase I Done Two memos were submitted to the eGov Board for approval (September 2015 and April 2016). The decision of the eGov Board was to purchase the media and the eSignature and eAuthentication certificates instead of developing government PKI infrastructure.

F: Q4 2017 (phase II)

Phase II - Project implementation  Prepare the tender documents.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN 

   5.5 Online start-up of a company.

Presidency Other Services

5.6 Digitalization of all schemes granted for the Enhancement of Entrepreneurship.

Presidency MECIT

5.7 Develop a Web-Portal for SME’s.

Presidency MECIT

5.8 Improve the Public Procurement Processes for ICT systems.

GAO/ Presidency

5.9 Ariadni Gateway.

Presidency / DITS

Preparation of a proposal based on best practices.

S: Q2 2017 F: Q3 2017

Public consultation of the tender documents Tender documents amendments based on the comments from the public consultation. Submit tenders documents to the Treasury for approval. Open invitation to tender. Evaluation of proposals and contract Award. Project implementation.

This action is related to action 5.9. An eService will be developed for a common application for the registration of a company to the Department of Registrar of Companies, the Tax Department and the Social Insurance Department. This eService has been included in the ARIADNI Action Plan.

S: Q4 2014 F: Q1 2017

The portal for the Point of Single Contact will serve also as the web portal of the Entrepreneurship Support Center. For this reason the Point of Single Contact will be redesigned in order to include all the necessary information/ links. Examine the possibility of altering the public procurement law & practices in regards to ICT systems.

Explore further the opportunities offered by the Gateway Ariadni.

The Greek Government will provide the Digitization System to the Cypriot Government (in the context of an MoU signed by the two parts concerning the promotion of entrepreneurship). The Cypriot Government will have to configure the system to adapt it to the Cypriot legislation and procedures. The action is expected to be finished at the beginning of 2017. This action is related to action 3.3

S: Q3 2016 F: Q1 2017

Not started yet. We will utilise the expertise and best practice of Estonia.

S: Q4 2014 F: Q1 2016

The Internet will be used more effectively to provide information and more public services online.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

(for (i) and (ii)) F: Q1 2018 for the development of the eservices of the Action Plan (see (iii))

An Action Plan with new public eServices in ARIADNI for the next 2 years (2016-2017) has been prepared and approved by the eGov Board (April 2016) and by the Council of Ministers (May 2016). The Government Gateway - "Ariadne", will provide: (i) Information on the procedures for all the services that the public sector offers to citizens and businesses. The new site under ARIADNI with all the procedures of the Government will be available by the end of May 2016 (ii) Information on the status of requests. This new eService for the Status of requests will be available by June 2016. (iii) Public Services online (completing and submitting an application online, online payments, etc. The Action Plan that has been approved includes 46 new eServices that will be implemented in 2016-2017.

Institutional arrangements and strong governance Action 6.1 Establishment of a single body responsible for the development and monitoring of the implementation of the Growth Strategy.

Authority Presidency

6.2 Transferring Public Administration Reform under the Deputy Minister. 6.3 Revise the role of the

Presidency

Description A single body under the Deputy Minister (DM)/Presidency has been established. The organizational structure and competencies have been defined. It will comprise of 5 Units: Public Administration Reform, Strategy, Procedures & Regulations, Investments and Entrepreneurship and E-Government. Responsibility for Public Administration Reform Sector has been transferred by a Council of Ministersâ&#x20AC;&#x2122; Decision to the DM. Examine the possibility of reactivating and strengthening the

Start/Finish Date June 2015 - The authorities will provide a monitoring report reflecting the progress in implementing the existing Action Plan for Growth.

Progress Done.

Done.

S: Q1 2015 F: Q4 2016

A proposal for the establishment of a new National Competitiveness Council was prepared by the Presidencyâ&#x20AC;&#x2122;s Unit

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

National Competitiveness Council.

capacity of the NCC to produce deliverables.

for Administrative Reform. According to the proposal, the Council will be mandated with the systematic monitoring of competitiveness indicators and the scientific assessment and analysis of the economyâ&#x20AC;&#x2122;s international competitiveness as well as with carrying out policy analysis and providing relevant recommendations for appropriate reforms. In formulating the proposal, the recent developments at EU level regarding the establishment of National Productivity Boards in the Euro Area Member States have also been taken into consideration. Preparation of the legislation is currently underway.

6.4 Transferring the implementation of Better Regulation under the Single Body. 6.5 Transferring the responsibility for the development of an eGovernment strategy under the DM.

6.6 Institutionalize the cooperation framework between the public and

Presidency

1. Transferring of the competence for Better Regulation from the MoF to the Single Body on Growth.

Q4 2014

Done.

Presidency

1. Examine the possibility of transferring the competence for the development of an EGovernment to the Single Body on Growth.

Q1 2015

Done.

Presidency

1. Establish mechanisms for consulting the industry, the private sector on a regular basis and prioritize suggestions for

The Council of Ministers decided to replace the Executive Computerization Board with the E-government Board, with representatives at the highest level (President: Deputy Minister and Members: Minister of Finance, Minister of Transport, Communications and Works, Digital Champion and Director of DITS). The E-government Board is responsible for approving all the e-gov actions, monitoring the progress of the e-gov actions and give solutions on significant problems that affect the implementation of e-gov actions. Also it takes political decisions regarding e-gov.

Q1 2015

The E-government Board is supported by the Presidency Unit for Administrative Reform. In the light of experience, it is considered more appropriate that public private consultations will not take place in the context of a permanent body for all policy areas, but rather in the context of an appropriate body/stakeholders depending on the policy area

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

private sector and the academia.

reform. 2. Setting up a permanent body with the participation of the public sector policy makers and business organizations representatives and academia.

in question. As far as competitiveness issues are concerned, consultations may be carried out in cooperation with the Competitiveness Council (please see action 6.3). Consultations in other areas covered by the action plan for growth have been taking place with the relevant/specialised groups of stakeholders and experts for each policy area/topic.

6.7 Promote participatory democracy through the introduction of an electronic petition system.

Presidency

The initiative will allow Cypriot citizens to participate directly in the development of the Governmentâ&#x20AC;&#x2122;s policies, by calling upon the Government to take action in specific areas proposed by the citizens. The initiative will be supported by an online electronic system, through which the citizens will be able to submit petitions.

S: Q1 2015 F: Q4 2016

Extensive consultations with relevant stakeholders took place in order to identify and agree the main parameters of the action. A draft Law was prepared and submitted to the Legal Service for legal vetting in March 2016. The specifications for the electronic petitions system were prepared by the Unit of Administrative Reform and the electronic platform is under preparation by the Department of Information Technology Services of the Government.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

PART B Actions implemented by relevant Ministries

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Connectivity Action 7.1 Connectivity.

Authority MCW /MECIT / CTO

Description 1. Enhance the ‘open air’ policy. 2. Review the current incentive schemes that are available for airlines for operating existing and introducing new routes. 3. Auctioning of available traffic rights. 4. Enhancement of dialogue and encouragement of airlines to provide new routes and direct connections to Cyprus. 5. Review of the airport charges imposed by Hermes. 6. Conduct a special study by experts for a viable interconnection network.

Start/Finish Date 1. S:Q42014 2. F: end of Jan15 3. S:Q42014 F:end of Jan15 4. Ongoing 5. Ongoing 6. The study and the evaluation are completed.

Progress The overall objective of this measure is the enhancement of Cyprus’ air connectivity, through the promotion of actions relating to the open air policy, the incentives provided to airlines, the airport charges and the available traffic rights. As regards the open air policy, the Action Plan of Cyprus’s Aeropolitical Strategy is implemented according to schedule and will be reviewed yearly. Regarding the review of the current incentives scheme, a new scheme was agreed with Hermes Airports Ltd and put in place in March 2015. The new extensive package of six incentive schemes offered by Hermes aims to further strengthen the passenger and tourism traffic to Cyprus. Furthermore, a dialogue for the encouragement of airlines to provide new routes and direct connections to Cyprus is currently ongoing. The auction of the available traffic rights was completed and successful airlines were designated in April 2015. Further scarce traffic rights that became available after Cyprus Airways’s closure are being made available to airlines gradually according to set priorities. The Sub–Committee on Connectivity is working on the overall issue of connectivity and preparing recommendations. Through the various measures promoted, an increase of 7.3% in passenger traffic was observed in 2015.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Shipping Industry Action 8.1 Enhancement of the competitiveness of the shipping industry.

Authority MCW

Description Development of a holistic Strategic Development Plan aiming at the improvement of the competitiveness and the international position of the Cyprus Shipping Industry.

Start/Finish Date S: Q42014 F: Q1 2015

Progress The Council of Ministers in March 2015 approved a framework of measures for the recovery and further development of the shipping sector, on the basis of a study conducted by independent experts aiming at the elaboration of a holistic Strategic Development Plan for the improvement of the competitiveness and the international position of the Cyprus Shipping Industry. A number of Ad hoc Working Groups were established in April 2015 by the MTCW, in order to make specific proposals for the implementation of this framework. The Groups concluded their work and proposals in December 2015. Work is underway by the said Working Groups studying further and implementing the recommended measures, which cover inter alia actions related to the promotion and development of the Cyprus Maritime cluster. Also, the functional review of the Department of Merchant Shipping (DMS) has been concluded. A decision was taken to set-up a Working Group, with the participation of the MTCW, the DMS and the private sector, to examine the recommendations contained in the functional review, the results of the visit of DMS to the British MCA in February 2016 and the settings-solutions that have been adopted in other EU Member States. Concrete measures will be taken so as to allow for the effective and flexible operation of the DMS, contributing to the sectorâ&#x20AC;&#x2122;s competitiveness.

Agriculture, aquaculture and processing of agricultural products Action 9.1 Reform of the Agricultural

Authority MARDE

Description - Preparation of a study to redefine the production model.

Start/Finish Date S: Q3 2015

Progress The Agricultural Research Institute, in cooperation with the Department of Agriculture, carried out a study in order to redefine the

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Policy.

production model in Cyprus based on water needs and water availability. The study is being finalized by the Ministry of Agriculture, Rural Development and Environment (MARDE). - Promotion of agricultural production, based on a contract between the producer and the buyer.

S: Q3 2015

The drafting of legislation and public consultation for promoting contract farming in milk production have been completed by the Department of Agriculture. The legislation has been legally vetted and approved by the Council of Ministers and will be submitted to the House of Representatives for enactment. The MARDE has prepared a policy outline for the promotion of contract farming in all sectors of the Cypriot agriculture. A Working Group was established and has worked on the formulation of an elaborated document regarding different aspects of contract farming and its application in Cypriot agriculture. The MARDE has begun disseminating the results of this work to all interested parties and future stakeholders. A draft contract between producers and the buyer is being prepared by the Department of Agriculture and will be available to the interested parties as a sample.

- Development of a strategy for the promotion of family farming.

9.2 Develop a Dairy Sector Strategy following the registration of halloumi as

MARDE

Develop a strategy, including infrastructure and support measures, for differentiating production towards the goat-

S: Q3 2015

A working document has been prepared in order to develop a strategy for the promotion of family farming. A Working Group (composed by several governmental and non-governmental stakeholders) was established and held its third meeting in October 2015. During the meeting the members of the Working Group discussed actions that could be included in the Action Plan for the promotion of family farming that is under preparation. As part of the aforementioned action plan, a small- scale survey was conducted in order to understand consumers’ awareness and preferences as regards the products that family farming units produce. Moreover the remaining actions, of the action plan, have been scheduled to take place during 2016. The Dairy Sector will be supported through the RDP 2014-2020 and especially the Measures “Animal Welfare” and “Establishment and operation of producer groups”. The RDP 2014-2020 was approved at the beginning of December 2015.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

a PDO Product.

sheep milk production, and increasing the overall production of goat-sheep milk.

The first procurement of sub-measure 4.1 of RDP 2014-2020 “Investment in agricultural holdings” was launched in May (9/5/2016) and the deadline for application submissions is on 9/9/2016. The budget of the sub-measure is €20.000.000, of which €7.000.000 will be distributed to sheep and goat sector. Sub-measure 6.1. of RDP 2014-2020 “Business startup aid for young farmers” was also launched on 9/5/2016 and the application submissions deadline is on 9/9/2016. Approved applicants will receive a premium of €20.000. Through the sub-measure 10.1.9 of RDP 2014-2020 “Agro environmental obligations for preservation and sustainable use of traditional breeds of animal”, which was also launched in May 2016, keepers of traditional breeds receive subsidies.

9.3 National Quality Certification.

MARDE

Investigate the possibility for the introduction of a National Quality Certification for traditional processed agricultural products.

S: Q2 2015

9.4 Introduction of new technologies in the primary sector,

MARDE

Examination of the possibility for the introduction of new technologies in agriculture (hydroponic and airponing

S: Q3 2015

Also, based on the provisions of Article 52 of Reg. (EC) No. 1307/2013 (DPs) for 2015 and 2016, coupled support for the sheep and goat sector shall be granted through the implementation of relevant measures. For 2015, payments of approximately €3,7 million were made. After the approval of the RDP 2014-2020, the implementation of the Cooperation Measure is expected to start next autumn. As far as the section of Protected Designation of Origin / Protected Geographical Indications / Traditional Specialities Guaranteed is concerned, it is noted that:  "Pafitiko Loukaniko" was registered on 20/10/2015  “Glyko Triantafyllo Agrou” was registered on 21/06/2016  "Kolokasi Sotiras/Kolokasi Poulles Sotiras" is expected to be registered next month  the application regarding "Χαλλούμι / Halloumi /Helim" is under examination by European Commission since aMember State and Third Countries have lodged oppositions. The new RDP 2014-2020 includes measures for the introduction of new technologies in agriculture, especially for water preservation and renewable energy sources. The first procurement of the related Measure 4 of RDP 2014-2020 was launched in May (9/5/2016) and the

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

reinforcement of R&D in the primary sector and promotion of climate smart Agriculture. 9.5 Support productive investment in Aquaculture.

agriculture).

MARDE

Increase the number of aquaculture licence determinations.

deadline for application submissions is on 9/9/2016.

S: Q1 2016 F: Q1 2017

This action falls within the scope of the National Multiannual Strategic Aquaculture Plan 2014-2020. In order to create new aquaculture units, new marine aquaculture zones / areas must be established. A study for establishing new aquaculture zones/areas is in progress and it is expected to be completed in the 1st quarter of 2017. It is noted that the implementation of this action (possible establishment of marine offshore aquaculture zones) is expected / estimated to take place in 3 to 4 years.

Green Energy Action 10.1 Optimisation of Energy mix and introduction of open, transparent, nondiscriminative and competitive electricity market in Cyprus, by attracting independent power producers using conventional fuels as well as renewable energy sources (RES) and energy efficiency.

Authority MECIT (L) CERA

Description 1. Adopt a new electricity model. 2. Promote RES. 3. Increase Energy Efficiency.

Start/Finish Date Ongoing

Progress 1. The public consultation conducted by CERA for the Draft Detailed Electricity Market Design (DEMD), based on the Net Pool Model, was th completed on 26 January 2015. On the basis of the comments received during the public consultation CERA published on 12/5/2015 the Regulatory Decision No. 01/2015 titled «Detailed Electricity Market Design is adopted». The Decision describes all the arrangements and regulatory interventions proposed for the functioning of a competitive electricity market in Cyprus. The Transmission System Operator of Cyprus (TSOC) is in the process of amending the Trade and Settlement Rules (TSRs) according to the CERA Regulatory Decision No. 01/2015. The approval process provides that the TSOC considers the view of his Advisory Committee before submitting the new Trade and Settlement Rules for approval to CERA and the Minister. Consideration of the draft TSRs by the Advisory Committee is in progress. It is envisaged that the new TSRs will be approved by the Minister by the end of 2016. According to CERA (Letter with ref. no. Ρ-Ε-473-16, dated 20.02.2016), the exact date when the final Trade and Settlement Rules are

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

expected to be fully operational cannot be determined until (a) the TSOC becomes legally independent from EAC, and (b) the TSOC is stuffed with adequate human resources. 2. The study, conducted by the International Renewable Energy Agency (IRENA) was submitted to the Government in April 2015. On the basis of the findings of the IRENA study, technical support was requested from SRSS for the preparation of a study to assess Grid Stability with respect to the integration of intermitted renewable energy sources to the Cyprus electricity system. This study was undertaken by the Joint Research Center (JRC) and is expected to be completed by July 2016. In addition, the National Action Plan for the Promotion of RES was updated (as regards the issues relating to the production of electricity from RES) in February 2016 following a decision by the Council of Ministers. The review took into consideration preliminary inputs from the JRC and KTH study, regarding the optimum way for the further penetration of renewables in Cyprus’s electricity network. In addition, the ongoing study from KTH (Royal Institute of Sweden), is being updated in order to accommodate the impact of Heating and Cooling as well as the Transport Sector to the RES Target of 2020 (13% of RES in the final energy consumption) and the indicative environmental targets for 2030 as well. The preliminary results of this study are expected to be delivered by the end of 2016. 3. Regarding the increase of energy efficiency, MECIT has secured: i) Funds of around 52.9 million Euro from the EU Structural and Cohesion funds that will be made available during the period 20142020, in order to provide financial incentives for the energy renovation of existing buildings (households, industrial and public), which also includes installation of RES systems and the promotion of nearly zero energy buildings. For the purpose of implementing this Programme, MECIT has announced two subsidy schemes, called “Save – Upgrade”. The schemes mainly finance deep renovation in households and commercial buildings of enterprises. Furthermore, the Programme includes energy renovation projects in

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

buildings owned and used by the central government, in the period 2015-2020. The buildings that will be energy renovated in 2016 have been selected and the procedure has started. The Department of Public Works is the responsible authority for implementing the projects. In addition, MECIT is cooperating with DG EPCD for the preparation of a call for expression of interest, aiming to finance pilot projects of combined heat and power generation in public authorities, local authorities and public universities.

10.2 Promotion of renewable energy sources.

MECIT

10.3 Energy Efficiency.

MECIT

1. Cypriot Authorities will revise National Action Plan for the promotion of RES 2030. 2. Conducting a study to help the Government of Cyprus to establish a comprehensive medium to long-term policy regarding the optimum penetration of renewable energy in the electricity system. 3. Support schemes for the promotion of RES â&#x20AC;&#x201C; financial support schemes for commercial electricity producing plants will be phased out by 2016. 1. Implementation of the 3rd national energy efficiency action plan. 2. Support schemes for the promotion of energy efficiency.

ii) In the framework of the Interregional program Greece-Cyprus 20142020 MECIT has submitted a project proposal for improving the energy efficiency in existing buildings of municipalities and regional authorities, which is currently under evaluation. See point 2 under measure 10.1 above.

See point 3 under measure 10.1 above.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

10.4 Waste management strategy.

MARDE, MOI,

2014-2015: MECIT to allocate funds of 1.6 million Euro from the EU Interregional Programme “Greece – Cyprus 2007 – 2013” for the improvement of the energy efficiency in existing public buildings. 2014-2020: MECIT to allocate funds of 52.9 million Euro from the EU structural and cohesion funds in order to operate programmes providing financial incentives for the energy renovation of existing buildings in households, industrial and tertiary sectors, which also includes the installation of RES systems and the promotion of nearly zero energy buildings. An action plan will be delivered for the effective implementation of the new strategy for waste management. Particular importance will be given on modern waste recycling technologies with a view to develop new areas of economic opportunity and job creation as well as on the possibility of combining waste management with electricity/heating generation.

Municipal Solid Waste Management Plan: S: Q4 2015 F: Q4 2021 National Waste Prevention Programme: S: Q4 2016 F: Q4 2021

A Municipal Solid Waste Management Plan and a National Waste Prevention Programme, in accordance with the requirements of the Waste Framework Directive (2008/98/EC), and the national Waste Law, were approved in November 2015, by the Council of Ministers. These documents form a comprehensive, integrated, 6-year municipal solid waste management strategy. The basic objectives are to achieve:  40% separate collection on the total quantities of municipal solid waste MSW by 2021 with a higher target of 50% to be reached by 2027  15% of organic municipal waste to be collected by 2021  50% of recyclables (paper, metals, plastic and glass) to be reused / recycled by 2020 and  no more than 95,000 tons of biodegradable waste to be disposed in landfills. At the same time, prevention actions will be promoted and implemented on waste streams such as food waste, plastics, paper, electric and electronic equipment, clothing and demolition and construction waste.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

S: Q4 2016 F: Q4 2022

Also a tender has been commissioned for the preparation of (a) Tires Waste Management Plan, (b) Waste Oils Management Plan and (c) Waste Management Plan for wastes not covered individually by a separate plan. The three Plans are expected to submitted to the Council of Ministers for approval by September 2016.

Generic pharmaceuticals Action 11.1 Consultation with stakeholders.

Authority MECIT / Presidency

Description Consultation with the stakeholders to identify key growth drivers for the industry and to start developing an action plan.

Start/Finish Date S: Q2 2015

Progress Meetings with relevant stakeholders were held. Issues/problems facing the industry were identified and raised with the relevant authorities. The main issue related to the hiring personnel from abroad. See measure 2.3.

Business and Professional Services Action 12.1 Diversify source and nature of professional services.

Authority MOF / MFA

Description Review ways to diversify the source and nature of professional services.

Start/Finish Date Ongoing

Progress A Committee was established, with the involvement of the Private Sector, which has responsibility for negotiating and promoting Agreements on the Avoidance of Double Taxation Treaties and for promoting other agreements regulating the tax relations of the Republic of Cyprus with third Countries and Organizations. An action plan was prepared and the Cyprus DTC Model was disseminated to a range of countries taking into account economic characteristics and business prospects in order to initiate negotiations. During 2014,2015 and the first semester of 2016 Cyprus signed Treaties on the Avoidance of Double Taxation with Norway,

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Switzerland, Guernsey, Island, Bahrain, Georgia, Iran, Ethiopia Latvia and the Protocol amending the Agreement with South Africa and Ukraine. Also the Agreements with Oman, Saudi Arabia, Jersey, and Barbados were finalised but have not been signed yet. Currently, Cyprus is in the process of revising and finalising the Double Taxation Treaties with Croatia, India, Luxembourg, Andorra and the Netherlands. 12.2 More effective point of contact for tax and legal tax issues.

MOF

Investigate the possibility of forming within the Government a more empowered single point of contact for dealing with tax treaties and agreements.

S: Q2 2015

COMPLETED The Council of Ministers has approved the establishment of a Steering Committee, an Advisory Committee and a Negotiating Committee which in cooperation with the competent Directorate of the Ministry of Finance, deal with issues of International Taxation.

12.3 Create the right regulatory framework for the investment funds industry.

MOF

Examine the possibility of improving the legal, tax and regulatory framework in consultation with the industry and CIFA.

S: Q1 2015

The Ministry of Finance has put as a priority the setting up of a modern and competitive legal and regulatory framework regarding the industry of collective investment funds in Cyprus based on best European and international practice. From 2010 onwards with the help of specialised external legal advisors and the Cyprus Securities and Exchange Commission, in constant and extensive consultation with the industry, the regulatory framework has been developed through the enactment of three separate laws (and respective secondary legislation) that form the legal nexus for collective investment schemes. These are: a) the Open Ended Undertakings for Collective Investment (UCI) Law of 2012 (UCITS Law) b) the Alternative Investment Fund Managers Law of 2013-(AIFM Law) and c)The Alternative Investment Funds Law of 2014- (AIF Law). CIFA has had the initiative to approach a multinational law firm, King &Wood Mallesons - KWM, that were employed for a) reviewing Cyprusâ&#x20AC;&#x2122; legal and regulatory framework on collective schemes and suggest changes that would make it cutting edge and b) promoting Cyprus as a funds international player through their international contact and influence.KWM view is that the current legal framework is quite good but proposed specific

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

changes that would make the framework more attractive, giving also a niche to Cyprus on specific aspects. Out of this work and the discussions that ensued, draft laws have been prepared (following consultation with the stakeholders involved), which introduce new features for the collective investment schemes in Cyprus. These include:  the introduction of registered funds, whose supervision will be done through the fund managers. This is similar to what Malta, Luxembourg, as well as Guernsey, are introducing.  the introduction of licensed and regulated mini— managers, for the fund managers below the European Directive thresholds.  the introduction of limited partnerships with legal personality as an alternative investment fund vehicle. At the same time, work is currently underway as regards the introduction of a framework that regulates the provision of Fund administration services with a view to propose a relevant legal framework soon. Such a measure is expected to enhance the support services offered to funds and fund managers, thus further facilitating their growth. 12.4 Promote Cyprus as a destination for asset management Firms.

CIFA, CIPA, MoF,

Enhance the awareness globally of Cyprus attractiveness as a jurisdiction in an effort to attract Funds or asset management firms in Cyprus.

Q1 2015

Upon the implementation of the changes to the regulatory framework (measure 12.3 above), KWM with CIFA will promote Cyprus internationally with a specific campaign, as a transparent, onshore jurisdiction for the domiciliation and management of investment funds. In May 2016 an International Funds Summit was successfully organized in Limassol by CIFA, which was under the auspices of the Ministry of Finance and CIPA and endorsed by the European Fund and Asset Management Association (EFAMA), with more than 450 participants of the Industry out of which more than 140 were industry professionals from overseas, including international expert speakers on Funds. The theme of the Summit was: Bridging the gap between Europe, the Middle East,

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Africa and Asia.

12.5 Review of Cyprus’ strategy as a business and financial centre.

MoF

Review of the strategy of Cyprus as a business and financial centre and come up with specific recommendations for Cyprus to remain relevant and competitive as a business and financial centre in the context of international developments. The review should cover all aspects of the legal, tax, regulatory framework and the need for horizontal coordination to facilitate the setting up in Cyprus of groups with regional operations. The review should also cover the country's promotion strategy in this area.

Q1 2016.

In June 2016, CIFA was granted full membership status to European Fund and Asset Management Association (EFAMA) during the EFAMA AGM. This is considered an important milestone and will definitely contribute to the growth of the fund industry in Cyprus due to the visibility and endorsement but most importantly the fact that Cyprus is on an EU and International level playing field. EFAMA is the representative association of the investment management industry in Europe. EFAMA represents through its 28 member associations, 62 corporate members approximately EUR 21 trillion in assets under management of which EUR 12.6 trillion are managed by 56,000 investment funds at end December 2015. Coordinative efforts are being undertaken in order to evaluate Cyprus’ several ratings as a business and financial centre. With a view to upgrade Cyprus’ position, an emphasis on the tax and legal framework was given, with the commencement of a tax reform. Specific recommendations are being promoted, with a view to safeguard competitive advantages and establish a competitive position internationally as a business and financial centre. The Council of Ministers has approved the establishment of an Ad-Hoc Committee to analyse and review the existing Business Sector Services and submit a report proposing measures that will be instrumental to upgrading the competitiveness of Cyprus as a business and financial centre.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Education Action 13.1 Aligning the Education and Training System to the needs of the labour market.

Authority MOEC/ MLSI

Description 1. Initiate a dialogue to identify institutional shortcomings e.g. fragmentation of responsibilities. 2. Reexamine educational goals with the aim of better matching education outcomes to labour market needs and reducing the skills mismatch.

Start/Finish Date S: Q1 2015 F: 2017

Progress The following actions have been implemented: 1a) Revision of the Strategic Plan of the MOEC for the period 2017-2019 under the Public Financial Management System with the aim to minimise fragmentation of responsibilities and better align the activities of Directorates and Departments. 2a) Assignment of the New Modern Apprenticeship Scheme to the MOEC on 1.9.2015 and approval of a proposal for the operation and upgrading of the Scheme on 19.8.2015. The measures currently implemented include access of Apprenticeship Scheme graduates to Evening Technical Schools and completion of upper secondary education, development of closer ties between the NMA and industry, development of forty specialisations, organisation of suitable training programmes. 2b) The Post Secondary Institutes of Vocational Education and Training (PSIVET) introduced in the academic year 2014-2015 the programmes “Maintenance and Energy Efficiency Upgrading of Buildings” and “Purchasing and Supply Management – Shipping”. Two new programmes will be introduced in 2016-2017 namely “Dairy Science and Technology-Cheese Making” and “CNC Technology-Woodworking Industry”. 2c) The MOEC is currently preparing to submit applications for the evaluation of PSIVET and for the evaluation/accreditation of the PSIVET programmes, to the Cyprus Agency of Quality Assurance and Accreditation in Higher Education. 2d) The establishment of the Cyprus Agency of Quality Assurance and Accreditation in Higher Education that will support the enhancement of the quality of Tertiary Education Institutions in Cyprus was approved by the Parliament on 9.7.2015. 2e) During the first phase of a project co-funded by the ESF for the establishment of mechanisms for the validation of the non formal and informal learning (NFIL), a conference was held on 16.6.2016 in order to identify the needs regarding the validation

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

of NFIL in Cyprus. During the second phase, expected to be concluded in Q3 2017, a contractor will be the assignment to map the situation in Cyprus and propose a national action plan for the validation of NFIL. 2f) Implementation of a project that will be financed by ESIF for introducing an online digital School Management System (SMS). The assignment of the task to a consultant to design the Business Requirements Definition is estimated to be concluded by Q2 2017. 2g) Implementation of the programme â&#x20AC;&#x153;Career Guidance for NEETsâ&#x20AC;? supported by the ESF. 3. Strengthen the link between enterprises and education institutions/academia e.g. by reforming the curricula, to reduce disparity between tertiary education programmes and the skills required in the labour market.

3a) Set up of 7 Industry Liaison Offices in 3 Public and 4 Private Universities. 36 Agreements have been signed between Universities and businesses aiming to promote a better and stronger communication and cooperation. 3b) Mapping of the Higher Education Area in Cyprus has shown that vocational, undergraduate and postgraduate programmes of study in high demand areas have been added in most Higher Education Institutions to meet the needs of the labour market and society e.g. Oil and Gas (2 years, Diploma), Master in Petroleum Engineering and Automobile Engineering (2 years, Diploma).

4. Revamp technical education to match the needs of the economy accompanied with a communication strategy to increase its attractiveness.

4a) Implementation of measures under the Strategic Plan for the System of Technical and Vocational Education and Training (STVE) which was approved by the Council of Ministers on 15.4.2015. 4b) Appointment of a Committee that has prepared proposals for the upgrading of STVE aiming to accelerate the reform process. The proposals were approved by the Council of Ministers on 14.12.2015. 4c) Measures covered in the Strategic Plan for STVE and the proposal of the Committee which are currently being implemented are: - the introduction of new fields of study and specialisations as of the school year 2016-2017 - the review of existing curricula or the development of new

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

curricula for the specialisations offered by STVE oriented towards learning outcomes and based on learning modules and ECVET units as of the school year 2016-2017 - the upgrade of the curricula offered by the Evening Technical Schools towards learning outcomes and based on learning modules and ECVET units -review of the existing STVE timetable as of the school year 20162017 -review of the institution of industrial placement of STVE students introduced as of the school year 2016-2017 -completion of the process for the establishment of a National Qualifications Framework. 5. Strengthen Public Employment Services and career guidance to reduce search costs and further alleviate skills mismatches.

5a) The PES information system upgrade which aims to make it an effective tool to design and monitor youth employment services and programmes is under development and is expected to be operational by the end of 2016. 5b) The project for the enhancement of the services capacity of PES, with a budget of â&#x201A;Ź5,7 mln, is in progress and the first stage regarding the increase of PES capacity is expected to be completed in the first quarter of 2017. 5b) The increase of the market penetration of the PES through more and better services to jobseekers and employers by redeployment and training additional staff with a budget of â&#x201A;Ź0,1 mln (ESF) is expected to start in the first quarter of 2017.

6. Address poor performance shown in the 2012 OECD Programme for International Student Assessment (2012) with respect to basic skills in mathematics, reading and science.

6a) The new Law for a more effective system of teacher recruitment will be enacted in 2018. 6b) The implementation of a New Professional Learning System for teachers and teaching processes in elementary and middle education has been piloted since September 2015 and discussions are taking place for a larger scale implementation in the school year 2016-2017. 6c) The MOEC is currently studying the financial and other aspects of the implementation of a new evaluation system for teachers and school work. Dialogue with all stakeholders is ongoing. 6d) Since September 2015 a reformed curricula and

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

modernisation of school timetables have been implemented. The curricula have been designed using a learning outcome approach (indicators of attainment and success).

Research and Innovation Action 14.1 Development of a Strategy for Research and Innovation.

Authority DG EPCD, MCIT,

Description Considering the findings of the study by the National Commission on Research, Innovation and Technological Development (NCRI), and taking into account the current fiscal constraints, develop a comprehensive strategy of Cyprus, taking into account the Smart Specialization Strategy for Cyprus.

Start/Finis h Date Q1 20152022 (for implement ation)

Progress The main findings and recommendations of the NCRITD study have also been identified in the Smart Specialisation Strategy (S3CY). The S3CY includes an Action Plan, to be implemented over the period 2015 – 2022, with measures amounting to €144 mln, with ESIF co-financing .In addition to providing targeted R&I support to priority sectors in order to increase their competitiveness, the Action Plan of S3CY is expected to also address the main issues of the R&I system in Cyprus such as the inclusion of SMEs in RTDI activities and the attraction of private sector in RTDI investments, the establishment of synergies between the research and academic community with the business world and the enhancement of extroversion of the Cyprus RTDI system. As regards the implementation of the S3Cy Action Plan, the Research Promotion Foundation (RPF) has completed the Draft Document RESTART 2016-2020 for launching the new Programmes. RESTART 2016-2020 is currently being examined by DG EPCD as Managing Authority of ESIF and the Office of the Commissioner for State Aid Control. The first call for proposals is expected within the second half of 2016. Furthermore, the Ministry of Energy, Commerce, Industry and Tourism has launched two programmes for strengthening business innovation with a budget of €13,96 mln and € 5,04 mln, respectively. The submission deadline expired on March 16, 2015 and the evaluation process is underway. The rest of the relevant

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Programmes of the Ministry, are currently in the phase of public consultation.

14.2 Utilization and commercialization of Research results.

DGEPCD MECIT

Measures for strengthening the link between academia and businesses, fostering better utilization of research results by businesses and industry by: Encouraging academic and research staff to engage in research activities that are relevant for innovative entrepreneurship and business start-ups, including the review of the current restrictive framework for the utilization of research results by public organizations. Enhancing enterprise access to research infrastructures, universities and research institutes.

S: Q2 2015

The other two implementing agencies of the S3Cy Action Plan, that is, the University of Cyprus and the Ministry of Agriculture, Rural Development and Environment are still in the preparatory phase for their programmes. The following schemes are being promoted in the context of the Structural Funds for the period 2014-2020: a) The financial scheme of Supporting Enterprises to Develop Innovative Products and Services encourages the cooperation between research institutions and industry. It is noted that 14% of proposals involve cooperation with Universities and other research centers. Start-ups can also submit proposals. All the proposals under this scheme are currently evaluated by the Ministry. b) Innovation Houses Scheme: Provides for the cooperation of University and private enterprises (planned for next year). This scheme will enable graduates to set up their own innovative company to utilize research results. The Research Promotion Foundation is planning the establishment of a Central Technology Transfer Office (TTO) in order to provide support to the academic and research institutions in Cyprus in relation to the protection and exploitation of their research results and intellectual property. The Central Technology Transfer Office will be complemented by Units within the major academic and research institutions, which will undertake basic technology transfer activities and facilitate the communication between the institutions and the Central National Technology Transfer Office. A Business Plan was created by external experts and will be put into stakeholdersâ&#x20AC;&#x2122; consultation. The legal framework and the functioning of the technology transfer centre will be examined and final decisions will be taken by the government. Currently, a study is being carried out regarding the legal framework of the development of the Central TTO, to be hosted by the RPF.

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

14.3 Further utilization of European competitive programmes, in particular Horizon 2020.

DGEPCD RPF

Enhancing the support services provided to the Cypriot organizations and businesses by the National Contact Points of the European competitive programs. Strengthening networking activities, including ÂŤlobbyingÂť in the Programme Committees of the EU Competitive Programmes and other policy and implementation related groups in the field of Research and Innovation in favour of research activities which could be utilized by Cyprus.

S: Q1 2015

A. HORIZON 2020 I. The Research Promotion Foundation (RPF) hosts all HORIZON 2020 National Contact Points (NCPs): (a) The services provided by the National Contact Points of Cyprus for the HORIZON 2020 Programme include among others the organization of info days and training workshops, the prescreening of proposals, dissemination of information through newsletters, social media and personal meetings with researchers. The first wave of workshops was completed in December 2015. In the first half of 2016 3 Workshops have taken place in Nicosia, Limassol and Larnaca (the planned workshop in Paphos was cancelled due to lack of interest). Some of these Workshops were open or designed specifically for a number of organizations (Chamber of Commerce, Universities) (b) Currently, under Horizon 2020, the National Contact Points of Cyprus participate actively as beneficiaries in 12 NCP Network Projects and in 4 as an Associated Partner. (c) Training of the NCPs: In addition to the training offered by the NCP Network Projects a number of training seminars have been organized for the NCPs of Cyprus in order to improve the quality of the services provided. In the first half of 2016 great emphasis was given to the Legal and Financial Issues and the Pre-screening of Proposals. II. The RPF coordinates the participation of Cypriot representatives in the various Programme Committees of the HORIZON 2020 Programme. Informal Advisory Groups for 11 Programmes / Societal Challenges (ICT, NMP, Space, Access to Risk Finance and SC1-7) were set up with the objective to provide comments and suggestions on the Draft Work Programmes and support the work of the Programme Committee Members. As a result the Programme Committee Members have started working on the input in the context of the preparation of the next Work

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Programmes covering the period 2017 â&#x20AC;&#x201C; 2020. III. The RPF collects and analyses the data relating to the participation of Cypriot organizations and researchers in HORIZON 2020. Based on the more recent information, which covers the period January 2014 â&#x20AC;&#x201C; February 2016, 125 contracts with 155 beneficiaries from Cyprus have been signed, with a requested budged that exceeds 40.9 million euros (12,6 million will fund the participation of SMEs). 32 successful proposals were coordinated by an organization based in Cyprus (out of which 7 were SMEs). In total, 1169 proposals have been submitted with 1427 participants from Cyprus. B. COST The RPF coordinates the participation of Cyprus in the COST Programme, which promotes the networking of researchers. Currently, 220 researchers working in organizations in Cyprus are participating in running COST Actions as Management Committee Members.

Transparency Action 15.1 Assessment of the current anti-corruption institutional set up.

Authority MJPO Law Office

Description Evaluation of the current institutional framework for investigating, prosecuting and preventing corruption and identification of required changes.

Start/Finish Date S: Q2 2015

Progress Cyprus is a founding member of GRECO (Council of Europe monitoring Group of Experts Against Corruption). Regarding the First and the Second Evaluation Round, the evaluation of Cyprus has been successfully completed. During the Third Evaluation Round, incriminations and transparency of party funding have been examined. th

On the 19 of November, 2015 the Political Parties (Amending) Law of 2015 was adopted by the Plenary of the Parliament, and it was enacted on 2/12/2015. Moreover, an on-site visit took place in the period between 2-6 November 2015, within the framework of the Fourth Round Evaluation of Cyprus, regarding corruption prevention

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

in respect of MP’s, Judges and Prosecutors.

15.2 Prioritizing policy areas in terms of incidence of corruption. 15.3

MJPO Law Office

Identification of the risk areas in order to establish priorities.

Q2 2015

MJPO

Develop a national strategic anti-

Q4 2015

As regards reporting and the protection of whistle-blowers, a bill entitled “the Reporting of Acts of Corruption (Supplementary measures for protection and leniency) Law of 2015” was prepared by the Ministry of Justice and Public Order and submitted to the Legal Law Office of the Republic for legal vetting on 28.12.2015. Also the Protection of Confidentiality of Private Communication (surveillance of conversations) Law of 1996, has been amended (amendments were enacted on 31.12.2015), through which access to private communication which is already recorded is regulated, thus reinforcing investigation and prosecution powers against crime. These amendments follow the 2010 amendment of Article 17 of the Constitution on the confidentiality of private communication. For purposes of enhancing transparency in public life and combating corruption, the Government prepared: - a bill for the amendment of Article 15 of the Constitution, adding transparency in public life and the taking of measures against corruption in public life, as exceptions to the rule that there shall be no interference with the exercise of the right to respect for private and family life.. The amendment of Article 15 came into force in April 2016. - two other bills amending the 2004 laws on the declaration of assets and other interests by the President, the Ministers and the Members of the House of Representatives (Law 49(I)/2004) and certain other Officers of the Republic (Law 50(I)/2004), through which the mechanism of declaration and audit of property and interests is reinforced and better implemented. The two amending bills were also enacted, but due to changes in the text effected by the House at the last stage, the enactments raised issues of possible unconstitutionality, which necessitated their Reference by the President of the Republic to the Supreme Court. The References are pending. The risk areas will be defined in the context of the preparation of the National Strategy for Corruption. (See 15.3 below).

A committee comprised of members from the MJPO and the Office

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

Development of an anticorruption plan. 15.4 Monitoring System for corruption.

Law Office Presidency MJPO Law Office

corruption action plan aiming at both public and corporate governance. Establishment of a system for the monitoring, assessing progress and measuring results in terms of corruption.

15.5 Enforcement of contracts.

MJPO Law Office Courts

1. Review of the main obstacles in the current procedures, in consultation with the competent authorities 2. Assign study to experts to provide suggestions, based on best practices to accelerate the award of justice in relation to commercial contracts (e.g. increase court efficiency, rationalization of procedures of administrative courts and reinforcement of extrajudicial processes)

Q4 2015

S: Q3 2015

of the Attorney General is currently developing the National Strategy for Combating Corruption. A Co-Ordinating Body Against Corruption, established by the Government in 2003, meets frequently to discuss problems of corruption and examines measures against corruption. Several laws have been adopted in the last few years in response to the need to take more initiatives and measures of a legislative nature aimed at the fight against corruption, based inter alia on recommendations to Cyprus in relevant International/European Reports. 1. The Ministry of Justice and Public Order, prepared a bill amending the Civil Procedure Law, so as to strengthen the legal framework for the enforcement of judgments. The provisions of the bill include measures which facilitate the execution of warrants concerning the seizure of movable property. The bill is pending at the Legal Service of the Republic for legal vetting (submitted on 2.3.2016). 2. The Supreme Court has appointed a standing Committee for the Review of the Civil Procedure Rules. th 3. The new administrative court has been established (on 7 of January 2016). The Administrative Court is designated to take on board all first instance administrative recourses, thus discharging the Supreme Court of this task and enabling it to carry out more expediously its second instance jurisdiction (appeals). 4. A draft law has been prepared for the filtering of an appeal regarding interlocutory judgments during the proceedings. The Bill is expected to be submitted to the Legal Service for legal vetting soon 5. The rules on foreclosure have been enacted. Rules on personal insolvency are being amended following technical assistance from the SRSS. Rules on corporate insolvency will also be amended. 6. Successful use is made of automatic stenotyping in criminal and civil cases before the Assize and District Courts, with the result that cases are dealt with more expeditiously. Same practice and equipment has now been extended so as to cover more Courts. 7. The Supreme Court is also considering the possibility of increasing the amount of the stamp duty for filing of civil actions, especially in higher scales. 8. First instance judges now have the right to alternative dispute

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

resolution. Also the court has the power to inform and encourage the parties to make such an option. 9. The Government is in the process of purchasing services for a Court Administration/Management Information System (E-Justice) for the Cypriot Courts through Strategic Investor, using an open tender process. The procedure is underway. 10. Also, the Supreme Court has requested technical assistance through the Support Group in the following areas: General management of court and case management, as well as implementation and use of information and communication technology in courts. This will enable the Judiciary to work more efficiently and speedily, assisting in the area of â&#x20AC;&#x153;enforcement of contractsâ&#x20AC;? at the same time. Meetings with the support group have taken place in order to proceed with the technical assistance.

Construction Action

16.1 Supporting companies to expand abroad.

Authority

MoF MECIT

Description

Support construction and related companies with international ambition to expand presence in key geographic territories and target project opportunities in emerging markets in the Middle East and Africa.

Start/Finish Date Q1 2015

Progress

The Ministry of Energy, Commerce, Industry and Tourism supports the construction sector through: 1. The operation of two subsidy schemes, under the De minimis rule, through which financial assistance is granted to real estate and land development companies, as an incentive to participate in specialised fairs and exhibitions abroad. The first scheme offers financial assistance to Cypriot companies which participate in exhibitions abroad at their own expenses. The date of call of this scheme for the year 2016 was October 2015. The second scheme involves the participation of companies, within a National Pavilion, in specialised exhibitions abroad. It is noted that for the year 2016two rounds of calls for this scheme,

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

has been completed: in November 2015 and in April 2016. 2. The organisation of trade missions and business forums annually in key target markets. Companies wishing to seek out business opportunities abroad can participate in these missions/forums, which often include Presidential/Ministerial participation. During 2015, 19 forums were organised in cooperation with the Cyprus Chamber of Commerce and Industry in 13 countries and during 2016 21 forums will be organised in 16 countries.

Smart Regulation Action 17.1 Improve the Public Procurement Processes for businesses.

Authority Treasury

Description Examine the possibility of altering the public procurement law & practices so as to make it less burdensome on enterprises and avoid delays caused by the appeal procedure lodged through the tender review authority.

Start/Finish Date S: Q1 2015

Progress The new Law on Public Procurement and Related Matters Regulation 73(I)/2016, has come in force in April 2016. Transposing the relevant Directive 2014/24/EU, the said Law, gives to the enterprises all the potential provided for therein (separation of contracts into lots, simplified manner of tenders documentation, proportionate selection criteria, flexibility throughout the evaluation process, the direct payments to subcontractors etc.), in order for the procurement procedures to be less burdensome and quicker. The same favorable procurement rules are also included in the draft Laws for utilities procurement and concession contracts, anticipated to be submitted to the House of Representatives in the following months. In addition to the above, most of the various measures which were adopted by the Council of Ministers in 2015, aiming at expediting the public procurement procedures and reducing the administrative burden borne by the economic operators, are implemented, especially the short term ones (e.g. the esubmission of tenders, the preparation of a study concerning the overall procurement environment, the quality control of tender

ANNEX - A NEW GROWTH MODEL FOR CYPRUS - PROGRESS IN THE IMPLEMENTATION OF THE ACTION PLAN

documents of certain values).

17.2 Simplifying and updating the procedure for issuing investments permits for the energy sector.

MECIT

MOI MARDE

In parallel, actions are being taken in order for the medium and long term measures to be implemented, (e.g. the creation of specialized procurement services in ministries with high procurement volumes, consisting of Treasury officers). A Coordination Committee for the Promotion of Large-Scale Energy Projects (Expedition of the Licensing Process) has been set up presided by the Department of Town Planning and with the participation of the Ministry of Interior, Ministry of Energy, Commerce, Industry and Tourism, the Ministry of Labour, Welfare and Social Insurance and the Ministry of Agriculture, Rural Development and Environment.

Simplifying and updating the procedure for issuing investments permits for the energy sector

MLSI

Digital Strategy and E-Government Action 18.1 Publishing information on government infrastructure projects.

Authority MCW MECIT MI MoF

Description Examine the possibility of publishing quarterly a rolling two year forward programme of public infrastructure and construction projects where public funding has been agreed.

Start/Finish Date S: Q3 2015

Progress Not started yet.