The United Nations Development Programme (UNDP) plays a special role in fostering peace building and co-operation in Cyprus, hence contributing to mutual understanding and facilitating a smooth transition to a functioning post-settlement structure.
On 1 October 2005 the Bi-Communal Development Programme (BDP) completed its work in Cyprus and the United Nations Development Programme launched a new initiative for bi-communal co-operation called
Action for Cooperation and Trust (ACT). The purpose of ACT is to build on the successes of the BDP and create opportunities for both communities to work together on concrete projects which will benefit all people on the island, while at the same time promoting tolerance and mutual understanding. With the financial support of USAID the hope is that projects under ACT will support principles of multiculturalism and European values and provide Greek Cypriots and Turkish Cypriots the resources and opportunities to jointly build the foundations for a sustainable solution to the Cyprus Problem.
The philosophy behind this approach is based on the understanding that any solution can only be implemented on the basis of solid networks of co-operation and the gradual normalization of relations in a wide variety of fields.
Since 2001, UNDP has also been responsible for the EU-funded programme Partnership for the Future, aimed at the rehabilitation of the old city of Nicosia in cooperation with the Nicosia Master Plan. In 2003, this programme extended the coverage of its technical assistance by providing direct support to the business communities on both sides of the island through targeted capacity-building activities and the provision of grant schemes for SMEs.