Cyprus is currently experiencing considerable challenges with its public infrastructure development, as numerous high-profile projects have encountered prolonged delays and substantial financial overruns. The road network sector, in particular, is demonstrating a consistent pattern of bureaucratic obstacles and contentious disputes with contractors. These issues are raising serious questions about the government's effectiveness in managing large-scale projects and the resulting financial impact on taxpayers.
A prime example of these difficulties is the Paphos–Polis Chrysochous road project, a crucial transportation link planned for the western region of the island. The necessity for this road was identified decades ago, but its construction has been repeatedly postponed. The Agia Marinouda–Stroumpi section, a 15.5-kilometre segment, has become a symbol of these systemic problems. This part of the project was initially contracted to INTRAKAT for approximately €73 million, with a completion deadline of November 2024. Unfortunately, by that date, only a small fraction of the work had been completed.
Consequently, the Public Works Department decided to terminate INTRAKAT's contract in November 2024 due to ongoing delays. An appeal by INTRAKAT's parent company, AKTOR, to the Tenders Review Authority did not alter the department's decision, further delaying operations. The termination and subsequent re-tendering process have significantly increased costs, with the new estimate now reaching around €92 million. The completion of this section is now projected to take an additional three years, a considerable increase from the original budget.
The Paphos–Polis Chrysochous road is not an isolated case; the natural gas terminal at Vasiliko also illustrates the difficulties faced by national development initiatives. These recurring problems are attributed to a combination of complex bureaucratic procedures, prolonged legal disagreements, and rising material expenses. Experts believe that underlying systemic weaknesses in the legal and institutional frameworks for tendering and executing public projects are contributing factors.
The consequences of these delays and cost escalations are extensive. Beyond the immediate financial strain, the lack of essential infrastructure has tangible social and economic repercussions. The unfinished Paphos–Polis Chrysochous road continues to affect the safety and efficiency of daily commuters and local businesses. As 2026 approaches, a critical year for assessing the nation's infrastructure capabilities, these ongoing project struggles raise concerns about the government's ability to achieve its development goals and meet its obligations to citizens. Urgent reforms in procurement and project oversight are clearly needed.