Turkish Republic of Northern Cyprus (TRNC) Prime Minister Ünal Üstel announced “Target 2033” on Monday, an ambitious set of plans to be developed jointly with Türkiye to shape the future of the country on the divided island of Cyprus.
Speaking at the launch of the program in Lefkoşa (Nicosia), Üstel laid out plans to cut energy costs by at least 50%, construct 15,000 social housing units, resume Cyprus Turkish Airlines (KTHY) flights in 2028 and launch general health care insurance next year.
The event in Lefkoşa was entitled “Projects Making Life Easier” and aims to boost the welfare of the TRNC, which was isolated by the international community. 2033 in the title refers to the 50th anniversary of the foundation of the TRNC.
Üstel said they signed protocols with Türkiye for the allocation of about TL 75 billion ($1.52 billion) in resources to realize the projects in energy, health care, transportation, technology, housing, education, agriculture and social support. “We will continue working for the country we dreamed of,” he said.
Üstel said projects to complete an electricity interconnection with Türkiye and a natural gas pipeline are also targeted for completion in this period, highlighting Turkish President Recep Tayyip Erdoğan’s support. “Despite all the obstacles posed by numerous international organizations and the Greek Cypriot side, we will definitely complete the electricity interconnection project with Türkiye via cable,” Üstel said.
Üstel said an additional 300 megawatts of natural gas-fired power generation capacity and a 40-megawatt backup unit will be added to the existing 430-megawatt capacity of the Cyprus Turkish Electricity Authority (KIB-TEK). He said the energy infrastructure will be renewed within five years through an investment of approximately $200 million. Electrical lines will be laid underground, starting in Lefkoşa, while a solar power plant with a capacity of up to 100 megawatts and a 25-megawatt energy storage unit will also be built. “We will reduce energy costs for households and businesses by at least 50% through interconnection, natural gas, solar energy and storage units. These investments will put an end to power outages, one of the biggest problems facing our country,” Üstel said.
Üstel announced that a new health care protocol would be prepared with Türkiye, aiming to allow TRNC citizens covered by the General Health Insurance scheme to receive treatment at contracted hospitals in Türkiye. “We will enable all citizens covered by the General Health Insurance scheme to receive treatment from all contracted hospitals and health care facilities in Türkiye under the same terms while they are there, under the protocol we will sign with Türkiye,” he said.
Noting that four meetings had been held with Turkish officials, Üstel said the protocol would be discussed during his visits to Ankara, with the system targeted to launch on March 1, 2027.
As part of health care investments, Üstel said the 343-bed New Lefkoşa State Hospital was scheduled for completion in 2027, while the Karpaz Pamuklu State Hospital was expected to be completed by the end of 2026. He also announced plans to build a new state hospital in Iskele and three oral and dental health hospitals in Lefkoşa, Gazimağusa (Famagusta) and Girne (Kyrenia). The health care system will also receive a helicopter ambulance, and a new 112 emergency coordination center will be established in Nicosia.
Üstel said the government aimed to relaunch Cyprus Turkish Airlines, declaring that “Cyprus Turkish Airlines will be back in the skies in 2028, after a 16-year hiatus.”
He argued that the airline’s return to service would boost tourism and help stabilize ticket prices. Üstel also said more than 200 kilometers (124 miles) of roads had been built or renovated over the past five years. An additional 150 kilometers of road investments are planned for the new term, he said, outlining projects including the Haspolat-Atatürk Teacher Training Academy road, the Ercan-Iskele dual carriageway and the Girne-Güzelyurt West Coastal Road.
Üstel announced the establishment of a Maritime Affairs Department and said Girne Tourism Port and Gazimağusa Port would be modernized within two years. Lefke Port and its marina would be restored, while a new marina would be built in Iskele.
Üstel said work had begun on a fiber-optic infrastructure project being carried out with Türkiye. Following talks with Turkish telecoms provider Türk Telekom, work would begin simultaneously at both ends of the island, he said.
“Within one year, the fiber-optic project will provide 150,000 households and businesses across the TRNC with high-speed internet, allowing them to access internet speeds five times faster at much more affordable prices,” Üstel said.
Recalling that a protocol signed with Turkish Vice President Cevdet Yılmaz had been referred to the Constitutional Court, Üstel said an additional protocol had been prepared, and the project had been resubmitted to the TRNC Assembly for ratification.
Üstel also announced the “Cyprus Tech” project, saying tax exemptions and employment incentives would be offered for investments in software, artificial intelligence, information technology, cybersecurity and advanced technologies. The entire TRNC will be turned into a hub for technology investment, he said.
Recalling that social housing projects had been relaunched after nearly 30 years, Üstel said the government would increase its target for an ongoing 3,000-home investment program to 15,000 homes in the new term.
He said approximately 5,000 citizens would be offered low-interest, long-term loans under the “Home-Building Loan” scheme.
Üstel also announced new family support measures. Working women with children up to age 6 would receive child care support equivalent to half the minimum wage, while women who are not registered with the social security system and could not enter the workforce because of child care responsibilities would receive monthly support equal to one-third of the minimum wage, he said.
Value-added tax (VAT) on consumer goods for children up to age 12 would be eliminated, Üstel said, adding that elderly citizens and those requiring care would receive assistance equivalent to half the minimum wage.
He also said first-time homebuyers would be allowed to use 50% of their savings in the Provident Fund without having to repay it. An additional 200 people with disabilities would be employed in the public sector, while social security premium support for women entrepreneurs would be extended from 60 months to 72 months, he added.
Outlining measures to combat the rising cost of living, Üstel said the government aimed to eliminate VAT on essential consumer goods, provide freight support for imported products and extend the VAT deferral period for imports to 90 days.
“We will prevent a product sold for 100 Turkish liras in Türkiye from being sold for 150 liras in our country,” he said.
Üstel added that a comprehensive support package for young people would be announced within a week. He said construction of the New Atatürk Stadium and Sports Complex was targeted to begin in early 2027. The 500-space parking lot planned for the complex would also serve as an emergency assembly area, he added.
Three new sports halls would be built in Iskele, Lefke and Gazimağusa, Üstel said, announcing plans to establish a Youth and Sports Ministry in the new term.
The Lefkoşa Cultural and Arts Center would be completed within two years, while multipurpose youth centers would be established in all six districts, he said.
In education, Üstel said 30 new schools and 622 classrooms had been added over the past five years, with six school projects still underway.
He also said approximately TL 7 billion in support had been provided to agriculture and livestock, while the agricultural support budget had increased by 321%.
Noting that the Century's Water Project, implemented with Türkiye, was being expanded, Üstel said work was continuing to extend water supplies to the Mesaoria Plain following their delivery to the Güzelyurt Plain.
Commenting on economic indicators, Üstel said the TRNC's gross national product increased from TL 74 billion in 2022 to approximately TL 333 billion in 2025, while per capita national income rose from $12,245 to $20,121 over the same period.
Protocols with Türkiye
He said protocols signed with Türkiye had brought approximately TL 75 billion in resources to the TRNC.
During his government's tenure, Ercan Airport was completed, state hospitals in Girne and Güzelyurt were opened, local government reform was implemented, and more than $200 million in investments and contributions were provided to KIB-TEK, Üstel said.
Expressing gratitude for Türkiye's support, Üstel said: “I would like to thank, in the presence of all of you, the Turkish nation and, in particular, President Recep Tayyip Erdoğan, Vice President Cevdet Yılmaz, the Embassy of the Republic of Türkiye in Lefkoşa and its institutions for the support they have provided under the Economic and Financial Cooperation Agreements for the projects we have completed to date and the many major projects planned for the coming period.”
Üstel said new investments would continue in line with the TRNC's 2033 vision, adding that other major projects that had not yet been announced would be unveiled to the public at two separate launch events.