CYPRUS DRY

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