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EY Water Management Report: Dam Evaporation and Overpumping – Unutilized Recycled Water

Serious shortcomings and warnings for the future

Famagusta News by Famagusta News
29/04/2025
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Although the Republic of Cyprus has proceeded with the preparation of the National Strategy for Adaptation to Climate Change, the degree of its implementation by the bodies involved is low and its monitoring by both the monitoring body and the co-responsible Ministries/Deputy Ministries is not satisfactory, the Audit Service identifies in its report on the adaptation of water resources management to climate change.

Among the findings identified by the report, it is stated that measures have not been implemented to limit the evaporation of water from dams and reservoirs, while the approved water withdrawal limits from dams are also noted. In addition, reference is made to the high production costs of desalination plants, due to their energy dependence on conventional fuels. It is also noted that a large part of the recycled water, which comes from wastewater treatment, remains unused or is discarded.

As the Audit Service notes in its report, no prioritization of the measures was carried out based on impact, the estimated cost of their implementation was not calculated, precise timetables were not set and they were not linked to specific actions towards achieving the objective.

Furthermore, it states that "important plans prepared under the Water Framework Directive (WFD) and taking climate change into account in water resources management are either not being implemented or their implementation is not being adequately monitored."

In more detail, the Audit Service states that the Republic of Cyprus has taken significant measures to manage water resources through the construction of infrastructure (dams, desalination, wastewater treatment), while the use of desalination has become critical for water supply, offsetting the effects of reduced rainfall.

However, it notes that there are weaknesses in the integrated management of water resources, such as their fragmentation and lack of interconnection.

It is also noted that the pricing policy is not fully utilized as a measure for sustainable use, while the implementation of strategies and plans, such as the Drought Management Plan, is experiencing delays and is not fully utilized for the optimal operation of infrastructure.

As EY notes, there is recognition of the need to improve efficiency, reduce costs and utilize renewable energy sources in desalination plants, while emphasizing that the utilization of recycled water has room for improvement.

Dams

----

Examining the measures that the Republic of Cyprus has taken to manage risks to water resources, through climate change adaptation actions, it is reported that a total of 108 dams have been constructed, with a capacity of 332 million cubic meters for water supply and irrigation.

However, it is noted that their management is fragmented, between the Ministry of Agriculture and the Ministry of the Interior, and that there is a lack of interconnection between main water projects, limiting flexibility.

EY emphasizes that no measures have been implemented to limit water evaporation from dams and reservoirs, which according to the most recent estimates amounts to 8%. It notes as successful pilot applications for evaporation reduction (floating membranes), which have not been widely implemented.

The report also highlights the exceeding of approved water withdrawal limits from dams, such as the South Pipeline and Paphos, in relation to drought indicators, as well as delays in the decisions of the Council of Ministers on water allocation.

Desalination

----

In addition, it states that five desalination units have been constructed, with a total capacity of 235.000 cubic meters/day, to reduce the dependence of the water supply on rainfall.

However, it is noted that the unit in Paphos was recently destroyed and is in the restoration stage, while the project to interconnect the Vasilikos desalination unit with the water supply network is under construction with delays, resulting in the desalinated water produced being channeled into the Southern Pipeline System and the need for its re-treatment.

The report notes that the contribution of desalination plants is critical to meeting water needs, particularly during drought periods, where they cover up to 81% of consumption.

However, it is noted that the production costs of the units are increased, due to energy dependence on conventional fuels and increasing energy costs. It is also noted that there are significant discrepancies in production costs between the units.

EY also reports that some units are operating with reduced production or in reserve, without fully implementing the Drought Management Plan (DMP) to determine the operation and reserve of the units.

The need for efficiency-improving and cost-reducing technologies, as well as investment in renewable energy sources, is highlighted, as well as the need for rapid activation of mobile units in cases of emergency, such as the recent unit destruction.

Wastewater treatment

———–

It is also reported that projects for the utilization of reclaimed water from wastewater treatment plants have been implemented and are operating, and a new refinery has been constructed in Choirokoitia, replacing the Choirokoitia - Famagusta Pipeline. As noted, since 1998 recycled water has been utilized in water supply.

However, while the maximum production capacity is 53,9 million cubic meters per year, in 2023 only 28,2 million cubic meters (52,3%) were produced. According to the report, much of the recycled water remains unused or is discarded.

Payment policy

---

Regarding pricing policy, the Audit Service notes that, without overlooking the fact that water is a basic good and access to it must be ensured for all, pricing policy must be a tool for containing demand for water and therefore for its sustainable management.

"The existing pricing policy for water supply presents inequalities among consumers, since significant differences are recorded between the fees imposed by Local Water Supply Bodies," it is noted.

Regarding irrigation, the low recovery of the cost of the water provided does not contribute to the promotion of crops that are consistent with the new climatic data of Cyprus, while it is also noted that the provisions of the relevant Regulations for the pricing of water pumped from boreholes have not yet been fully implemented.

Furthermore, it is noted that the effectiveness of the existing pricing policy as an adjustment measure has not been evaluated.

Commission warning letters

———–

According to the report, the European Commission sent a letter of formal notice to Cyprus on April 19, 2023, for non-compliance with the judgment of the Court of Justice of the European Union, which concerned the incorrect implementation of Directive 91/271/EEC, which sets rules for the collection, treatment and disposal of urban waste water.

In addition, the European Commission sent a letter of formal notice to Cyprus on November 14, 2024, for failing to periodically review its water permits in accordance with the Water Framework Directive (WFD). Cyprus' national legislation does not require periodic review of permits, despite the requirements of the WFD.

In accordance with the above, Cyprus is called upon to take immediate compliance measures in order to avoid further sanctions.

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