Üstel Unveils UBP’s “Projects to Make Life Easier,” Sets 2033 Vision

Under the “Target 2033” vision, the government plans to introduce new family support measures, expand social housing to 15,000 units, relaunch Cyprus Turkish Airlines (KTHY) in 2028 and reduce energy costs by at least 50%.

Speaking at the launch event, Üstel reviewed his government’s previous term in office and announced plans for the next five years, with 2033 — the 50th anniversary of the establishment of the Turkish Republic of Northern Cyprus (TRNC) — set as the long-term target.

Üstel said the government would introduce new measures in a wide range of areas, from financial assistance for families and energy investment to social housing and healthcare services.

He noted that the project announcements would be made at three separate launch events. The first focused primarily on reducing the cost of living and strengthening the country’s infrastructure.

New Family Support Package: Childcare Assistance and Zero VAT on Essential Goods

Üstel said combating the rising cost of living would be one of the new term’s priorities, announcing measures aimed at narrowing price differences between Turkey and the TRNC.

Under the proposed measures, the range of essential consumer goods covered by the scheme would be expanded, with VAT reduced to zero on eligible products. Freight subsidies would also be provided for imported goods, while the VAT deferral period for imports would be extended from 60 to 90 days.

Üstel outlined several forms of assistance for families, including childcare support for working women with children aged between zero and six. Eligible women would receive an allowance equivalent to half the minimum wage to help cover nursery and childcare expenses.

He also announced plans to eliminate VAT on consumer products for children aged up to 12 and introduce monthly payments equivalent to one-third of the minimum wage for women who had been unable to enter or had left the workforce because they had children and had no social insurance registration.

Elderly people and those requiring care would receive support equivalent to half the minimum wage to help pay for private nursing homes or home-care services.

Üstel further announced that first-time homebuyers would be allowed to withdraw 50% of their savings held in İhtiyat Sandığı accounts without having to repay the amount.

The period of social security premium support for women entrepreneurs would be extended from 60 to 72 months, he said, adding that the government would recruit another 200 people with disabilities into public-sector jobs.

Üstel also announced that a comprehensive support package for young people would be unveiled within a week.

Social Housing Target Raised to 15,000 Units

Addressing the housing shortage, Üstel said construction was continuing on nearly 3,000 homes under social housing projects that had been relaunched after an interval of approximately 30 years.

The government intends to expand the social housing programme to 15,000 units during the new term, he said.

Üstel also announced a new loan programme for people seeking to build homes on rural land allocated for residential construction.

Under the programme, called “Ev-Yap Kredisi” (Home-Building Loan), the government aims to provide approximately 5,000 people with low-interest, long-term financing.

KTHY Targets Return to the Skies in 2028

One of the most notable announcements concerned plans to relaunch Cyprus Turkish Airlines (KTHY).

Üstel said the government aimed to see the airline resume flights in 2028, 16 years after it ceased operations.

He argued that restoring the airline would contribute to tourism and help balance ticket prices. Acknowledging that similar proposals had been discussed in the past, Üstel said the government intended to deliver on the target this time.

Energy Costs Targeted for 50% Reduction

Üstel announced that projects to establish an electricity interconnection with Turkey via an undersea cable and construct a natural gas pipeline would be completed during the new term.

He said the Cyprus Turkish Electricity Authority (Kıb-Tek), which currently has a capacity of 430 megawatts, would receive an additional 300 megawatts through the installation of two natural gas units, each with a capacity of 150 megawatts.

A further 40-megawatt backup unit would also be installed, he said.

Üstel added that the country’s above-ground electricity infrastructure would be moved underground over five years, starting in Nicosia.

Following infrastructure investment of approximately $200 million, Kıb-Tek is also expected to receive solar power facilities with a capacity of up to 100 megawatts and a 25-megawatt energy storage unit.

Üstel said the government aimed to reduce electricity costs for households and businesses by at least 50% through these investments and bring power cuts to an end.

Fibre-Optic Internet for 150,000 Homes and Businesses Within a Year

Announcing that fibre-optic infrastructure work had begun, Üstel said the project was being carried out in cooperation with Türk Telekom, with work progressing simultaneously from both ends of the island.

The government aims to provide 150,000 homes and businesses with internet access at more affordable prices and speeds five times faster than existing connections within one year.

Üstel also announced the “Cyprus Tech” project, which aims to turn the entire country into a hub open to technology investment.

Investors operating in software, artificial intelligence, information technology, cybersecurity and advanced technology would be offered tax exemptions and employment incentives, he said.

150 Kilometres of New Roads and Modernisation of Ports

Üstel said more than 200 kilometres of new roads had been built or existing roads renovated over the previous five years. The government plans to invest in an additional 150 kilometres of roads during the next term.

Projects include the Haspolat–Atatürk Teacher Training Academy Road, the dual-carriageway road between Ercan and İskele, and the Kyrenia–Güzelyurt West Coast Road.

In maritime transport, Üstel announced the establishment of a Maritime Affairs Department and said the government aimed to modernise Kyrenia Tourism Port and Famagusta Port within two years.

Rehabilitation of mining waste in Lefke would begin in early 2027, he said. Üstel also announced plans to build a new port and marina in the area for the first time in 40 years, as well as a new marina in İskele.

New Nicosia State Hospital to Open in 2027

Üstel said the 343-bed New Nicosia State Hospital was scheduled for completion and opening in 2027.

The Pamuklu State Hospital in the Karpaz region is expected to be completed by the end of 2026 and opened in early 2027, he added.

Construction of a new hospital would also begin in İskele, while three new oral and dental health hospitals would be built in Nicosia, Famagusta and Kyrenia.

Üstel announced that a helicopter ambulance would be added to the healthcare system and that a modern 112 Emergency Coordination Centre operating around the clock, seven days a week, would be established in Nicosia.

General Health Insurance to Launch on March 1, 2027

Üstel described the introduction of General Health Insurance as one of the most important projects of the new term, saying the system would guarantee access to healthcare for all citizens.

The scheme is intended to allow citizens to receive treatment at public, private and university hospitals. Pharmacies would also be integrated into a medicine tracking and supply system, he said.

Under a planned protocol with Turkey, TRNC citizens covered by General Health Insurance would be able to access services at contracted hospitals and healthcare facilities in Turkey under the same conditions while visiting the country.

Üstel said four meetings had already been held with Turkey on the issue and that he intended to complete the protocol process during his upcoming visits to Ankara.

The government aims to make General Health Insurance available to citizens from March 1, 2027, he announced.

Foundation of New Atatürk Stadium Planned for 2027

Turning to sports infrastructure, Üstel said project planning and protocol work for the New Atatürk Stadium and Sports Complex had been completed. Construction is expected to begin in the first days of 2027.

The complex will include parking for 500 vehicles, which will also be designed to serve as an emergency assembly area, he said.

Üstel announced plans to build three new sports halls in İskele, Lefke and Famagusta. The government would also establish a Ministry of Youth and Sports during the new term.

In the cultural sector, the Nicosia Culture and Arts Centre is scheduled for completion within two years. Multi-purpose youth centres would also be opened in all six districts, Üstel said.