Paphos, Cyprus. Former Disy leader Averof Neophytou said he is bemused by rising construction costs for the road intended to link Paphos with Polis Chrysochous, as the latest tenders nearly double the original budget forecasts.
Neophytou cites earlier warning on contract terminations
Neophytou, who previously served as public works minister and mayor of Polis Chrysochous, wrote on social media that he had warned the government in 2024 against terminating public works contracts with the aim of lowering costs. He said that, despite the government’s justification that contract terminations would lead to faster and cheaper completion for taxpayers, he had argued the opposite would occur.
First phase details and original contract timeline
Discussions have focused on the first phase of the project, covering about 15.5 kilometres between Ayia Marinouda, near Paphos, and Stroumbi, located roughly halfway between the road’s endpoints. The government signed a contract in 2021 with Greek construction firm Intrakat, now known as Aktor, aiming for the first phase to be completed by the start of 2025.
Contract termination and dispute over additional costs
The 2021 contract was terminated in 2024, with the public works department later stating that Intrakat’s demand for additional costs and time was considered extremely problematic and excessive. Neophytou said the government cited the contractor’s “reasonable demands” for an additional €25 million, while the original contract was valued at €73 million plus value added tax.
New bids and projected total costs
Neophytou said that if the additional €25 million had been granted, the road would have been finished at a cost of €98 million. He said that after almost two years of delays, bids were reopened and the lowest bid is €125 million. He added that the government has already paid €16 million to Intrakat for work performed, bringing the projected total to €141 million if the bid is awarded, without counting any additional costs that may arise during execution.
What should be done to improve cost control and scheduling in major public works projects?
