Financial Matters

General

According to the Law, every year the Board prepares annual budgets that are submitted to the Ministry of Interior for approval. Moreover, financial statements are prepared annually and are audited by the Auditor General of the Republic. These are then submitted to the Ministry of Interior. The budgets and financial statements are prepared in accordance with the International Accounting Standards and the provisions of the Sewerage Systems Laws of 1971 to 2015.  According to the Law, the Board must be a financially self-sustained organisation and its future plans and projects must be implemented on the basis of the anticipated income of the organisation.

Capital expenditure

The total sum of the capital expenditure spent by the Board up to 31 December 2015 is 310 million Euro. This amount includes works under construction of 67,5 million Euro which have not yet been completed and put into operation.

Financing Sources

For the purpose of financing the construction works of the sewerage system of the greater area of Limassol, the Board has contracted loans on Government guarantee from the European Investment Bank and the Council of Europe Development Bank.

These loans cover almost 80% of the capital expenditure whilst the rest of the amount as well as the operation and maintenance cost of the sewerage system is covered by self-generated funds. These mainly arise from the sewerage charges imposed on all the properties within its boundaries.

With regards to the stormwater drainage system, one third of the capital expenditure for its construction is covered by the Government, as government contribution.  In addition, 80% of the capital expenditure for the construction of flood protection works is also covered by the Government.