VZCZCXRO9840
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHNC #0551 1991404
ZNR UUUUU ZZH
P 171404Z JUL 08
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC PRIORITY 8992
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 5229
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS NICOSIA 000551 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON SENV CY
SUBJECT: CYPRUS DRY 
 
REF: A. 07 NICOSIA 910 
     ¶B. NICOSIA 014 
     ¶C. NICOSIA 827 
 
¶1. (SBU) The Director for Operations of the Water Development 
Department (WDD) told us that Cyprus is experiencing "a 
national catastrophe" due to the continuing drought and 
failure of the GOC to prepare "despite the WDD having warned 
the government for two years that this could happen." While 
perhaps an overstatement from an individual exhausted by the 
daily battle to provide water and allocate the limited supply 
between farmers, hotels, industrialists, and consumers, there 
is no doubt that the situation is severe, with the city of 
Limassol (population about 180,000) expected to have no water 
left in its dams by early August. The island's consumers have 
had access to city water only 3 days per week for the last 
four months. 
 
¶2. (SBU) As of July 9, Cyprus' dams were at 6.7 percent of 
capacity, containing 18.4 million cubic meters of water. Last 
year at this time the dams were at 20.7 percent of capacity. 
Last year, the WDD supplied 109.5 million cubic meters of 
water of which 33 percent went for irrigation. This year, the 
WDD is limiting supply to an annual rate of 68 million cubic 
meters. The country's two desalination plants supply 27.1 
million cubic meters per year, non-potable sources (wells and 
grey water) supply 10.9 million cubic meters per year. There 
is, therefore, a 30 million cubic meter shortfall, even at 
this year's 38 percent reduced supply rate, which must  be 
supplied by dams or other sources. With dams due to run 
completely dry in a matter of weeks (except in the unlikely 
event of significant summer rain), the government has taken 
to importing water via tanker from Athens (reftels). The 
first shipment arrived in Cyprus two weeks ago but, owing to 
the failure to complete the ship-to-shore pipeline, water 
only began pumping ashore on July 16. By that time, the water 
was deemed suitable only for agriculture.  A second tanker of 
the six-tanker water fleet contracted for by the GOC is 
expected to arrive on July 20. 
 
¶3. (SBU) The contract with Greece and Cypriot shipping 
company "Ocean Tankers Ltd," will supply 8 million cubic 
meters of imported water over 160 days. In addition, the two 
existing desalination plants are expanding their output by a 
combined annual 10.6 million cubic meters and three other 
projects are in various stages of contracting to supply 
another 18.2 million cubic meters, although when these 
projects will be ready is uncertain. The GOC is also 
considering a project for a floating desalination plant that 
would supply 18 million cubic meters.  If completed, all 
these desalination plants will be sufficient for Cyprus' 
needs assuming a continued conservative level of consumption. 
However, the water will cost significantly more than dam 
water, ranging from .75 to 6 Euros/cubic meter, for which the 
government continues to charge about .25 Euros to the 
consumer. Also, the increase in carbon dioxide produced by 
all these additional energy-hungry desalination plants will 
increase the penalties Cyprus will theoretically have to pay 
to Brussels for missing its greenhouse gas emission targets 
in 2009. 
 
¶4. (SBU) Comment: The current desalination plants will have 
to shut down for several days at some point as part of their 
expansion efforts and, given the vagaries of construction 
timetables, there is a strong possibility that additional 
plants will not be on-line in time for the next tourist 
season in May 2009. If there is below normal rainfall again 
this winter, Cyprus may have to take even more drastic steps 
in allocating water supplies, such as further reduce the 
amount of water supplied to farmers.  The minister 
responsible for water issues is, however, the Minister of 
Agriculture, and he has demonstrated a degree of incompetence 
that has been the subject of numerous newspaper editorials. 
A national plan combining water conservation programs, 
upgrading infrastructure to reduce leakage, and a less 
haphazard series of tenders for additional desalination 
plants are what the WDD is hoping for, but not expecting. 
Meanwhile, climatologists believe that the trend of declining 
average rainfall in Cyprus (541 mm/year 1900-1970, 462 
mm/year since 1987) will continue.  Large hotels are buying 
their own desalination plants. 
SCHLICHER