Giannis Karoussos asks for clarifications for the poll of the Municipality of Paralimni

In a letter to the Minister of Interior Konstantinos Petridis, the Mayor of Ayia Napa, Giannis Karousos, expresses his dissatisfaction regarding the techno-economic study carried out by the researcher of the Ministry of Interior.

Mr. Karousos in his letter points out that in this study the results are misleading and do not lead to correct and objective conclusions since the unification scenario of the Municipalities of Ayia Napa - Sotira and the community of Liopetri was not taken into account, as well as in their calculations for Famagusta province scenarios for Ayia Napa and Paralimni instead of using their equivalent population uses that of the census.

Specifically, Mr. Karousos analyzes his objections to the study in the following points:

The study does not consider or even avoids examining the scenario Ayia Napa - Sotira - Liopetri, and Paralimni - Deryneia - Frenaros and examines only Ayia Napa - Sotira and Paralimni - Deryneia. The researcher had all the data and could easily calculate this option as in the scenario alternative 3 for the province of Famagusta includes Liopetri and Frenaros. This scenario was also discussed in a relevant meeting we had with him at the ministry in the presence of officials and the researcher himself.
I am sure that if he considered this scenario properly then he would be obliged to propose it since it would have extremely high savings plus the benefits that the new Municipality will have by maintaining the brand name for the benefit of Sotira and Liopetri.
My request is to update the study with this scenario, it is something that the researcher must do, in any other case the conclusions of the study are misleading.
The Researcher completely ignores the issue of tourism and the fact that in Cyprus there are Municipalities that have been created due to their finances and that all their data and data come from the equivalent / active population and not from the population according to the census . The scholar must correct this distortion and make his calculations for Ayia Napa and Paralimni according to the equivalent population since this is the right, the law and only in this way can objective conclusions be drawn. We emphasized this and documented it with our letter 5/2/2019
It is not possible to consider that the 16.4 million revenues of Ayia Napa or the approximately 14m in expenses, for 2017, are created only by the 3212 inhabitants. In Ayia Napa, for example, the equivalent population is 11.3 times larger (36,272) than the census population (3212). The income of Ayia Napa in 2017 (16.4m), as well as the expenses (14.3m) were created by the equivalent population of 36,272 and not by the population of the census 3212. The same principle applies to Paralimni since its active population is (44,332) 3 times larger than that of the census (14963)
Due to the above, the study comes to wrong conclusions. It is generally accepted that Ayia Napa and Paralimni have an active population many times greater than their census. And this particularity had to be taken into account. the Scholar had to bring the population data to Normalized so that correct conclusions could be drawn.
The Equivalent population of Ayia Napa and the Municipality of Paralimni was calculated based on the definition of the statistical service which states on its website that the equivalent population is defined as the "organic biodegradable load having a BAO of five days (BAO5) equal to 60g of oxygen" (Annex A). Based on the above and using the flow to the Ayia Napa and Paralimni wastewater treatment plant in 2017 on average year-round
1. Ayia Napa has an equivalent population of 36,272
2. Paralimni has an equivalent population of 44,332

With the above numbers should be made all the calculations for the 2 above Municipalities in all the scenarios examined in the study

8. If for Ayia Napa and Paralimni we include in our calculations the equivalent population then the savings will be at least 68% reduced compared to those calculated by the researcher for the scenario of a Municipality or that of the union of Ayia Napa - Paralimni and will reject any scenario related to the merger of Ayia Napa with Paralimni. On the contrary, the techno-economic scenario of Ayia Napa - Sotira - Liopetri and Paralimni - Deryneia - Frenaro (which were not examined and should be examined) will be significantly strengthened.

9. All calculations for the province of Famagusta should be made on the basis that the population is as follows:
a. Ayia Napa has an equivalent population of 36,272
b. Paralimni has an equivalent population of 44,332
c. The Savior based on the inventory 5374
d. Deryneia based on the inventory 5844
e. Liopetri based on the inventory 4591
f. Frenaros based on the inventory 4298

10. to understand the distortions and what I mean I give you some examples that show that the averages are reduced by 68% when using the active / equivalent population.

a. In graph 31 of the study entitled, same income per inhabitant, Ayia Napa based on the calculations of the researcher has a result of 4517,4 euros per inhabitant, but if the equivalent population is used, ie 36272 then the result will be 400. For Paralimni you decrease from 1154 to 389. The average does not decrease from 1188,3 which the researcher estimates at 381,3. The difference as you will understand is significant as it is a reduction of the average by 68% and this applies to all calculations.

b. The same applies to the calculation of graph 32, expenditures per inhabitant of a single municipality of free Famagusta with the average also reduced by 68% from 1323 per inhabitant to 424 per inhabitant. This applies to all graphs.

c. Also in Graph 33, Average cost of utility services the correct calculation should be for Ayia Napa in 242 and for Paralimni in 293 reducing the average by 68%. Therefore the conclusion of the scholar on page 80 that the average per capita cost of providing services for Ayia Napa will be reduced by 68.2% is wrong and leads to wrong conclusions since in fact this cost will increase from 242 to 278 ie the citizens will be burdened Ayia Napa this is projected to affect the service offered to tourism.

What applies to the above examples applies to all graphs in which they are calculated based on the population of the inventory.

11. Based on the analysis based on the equivalent population, the scenario of merging Ayia Napa - Paralimni should be rejected since it will have significantly reduced savings as well as the scenario of creating a Municipality from the existing 4.

12. The Scholar does not take tourism and the Ayia Napa Brand in the SWOT analysis. Among the advantages of merging Ayia Napa Sotiras, should have included the advantage of the brand Ayia Napa and its expansion to Sotira and Liopetri and all the benefits that will bring special development and tourism, something that will lead to a vertical increase in revenue of Sotio

13. Study Notaries of the Union of Municipalities. The study of this company which was detailed, with visits to all Municipalities, and which took into account the specifics of the Municipalities, in its conclusions states that in case of creation of 2 Municipalities in Free Famagusta they should result from the merger of Ayia Napa with Sotira and Deryneia with Paralimni. How can another techno-economic study reverse this result?

14. The feasibility study does not analyze or report on its methodology for how savings are calculated and in particular how it calculates fixed costs, variables, units and unit costs, something you should mention in the study.

Mr. Karousos asks for the feasibility study to be updated immediately and before the Ministry of Interior submits its final proposal because the way it has been prepared leads to wrong conclusions.

In addition, Mr. Karousos states that the scenario Ayia Napa - Sotira - Liopetri and Paralimni - Deryneia - Frenaros should be included. Considers it important and very serious to draw correct and objective conclusions regarding Ayia Napa and Paralimni that the calculations should be made on the basis of their equivalent population which in this case is the correct and fair number of the population since This is a feature that is commonly accepted and that will overturn the conclusions of the study.

The Mayor of Ayia Napa also notes that Ayia Napa and Paralimni will have no savings, instead they will bear costs that may affect the tourist product and branding of Ayia Napa.

The issue of the equivalent population was raised in a previous letter to the ministry dated 5/2/2019, says Mr. Karousos, where a substantiated analysis of the issue was made and Ayia Napa was asked to participate in the studies based on the equivalent of the population.

Concluding the letter, Mr. Karousos expresses their expectation that instructions will be given to the researcher for updating based on what he mentions because it would be unfair to make decisions based on wrong data.