Cyprus is currently confronting a significant crisis within its public works sector, where major infrastructure undertakings are experiencing substantial delays and escalating expenses. Inefficiencies in bureaucratic processes and prolonged disagreements with contractors have been identified as primary causes for these issues. These problems are jeopardizing project timelines and causing budgets to inflate by millions of euros. This widespread dysfunction, clearly demonstrated by the stalled natural gas terminal in Vasiliko and the problematic Paphos–Polis Chrysochous road, is becoming an unfortunate pattern. It is raising serious questions about the effectiveness of the island's project management and procurement systems.
The Paphos–Polis Chrysochous road project serves as a particularly illustrative example of these persistent challenges. The urgent need for an improved road connecting these two important western Cypriot locations was recognized as early as the 1990s. However, its completion has been a frustratingly long process marked by numerous setbacks. Initial bids for the construction were submitted in November 2019, and a contract was finally signed in May 2021. The agreement was made with the Greek construction company INTRAKAT, which is part of the larger AKTOR group. The original deadline for completion was November 26, 2024, with an initial contract cost of €72.979 million plus VAT. By the original completion date, however, only a modest 21.1% of the road project had been completed, highlighting a significant gap between initial planning and actual execution.
The Public Works Department's decision to terminate INTRAKAT's contract on November 11, 2024, represented a critical turning point. This decisive action was reportedly taken due to the contractor's failure to meet the agreed-upon construction schedule. Nevertheless, the subsequent dispute led to AKTOR filing an appeal with the Tenders Review Authority. This legal challenge effectively halted the project's progress from November 2024 until very recently. This prolonged period of inactivity has not only worsened the delays but has also contributed to increased material costs. Consequently, revised financial projections for the project have become necessary.
The financial consequences of these delays are considerable. For the Agia Marinouda–Stroumpi section of the Paphos–Polis Chrysochous road, a 15.5-kilometre stretch, new cost estimates now approach €92 million. This represents a significant increase from the initial tender price. This financial escalation, combined with the continuous delays, means that the road, which has long been a source of inconvenience and potential danger for residents and visitors, will not be fully operational for several more years. The projected completion timeline for this specific section is now estimated to be within the next three years.
Beyond the immediate financial and temporal impacts, the recurring problems affecting these public works projects reveal deeper systemic weaknesses. The complex network of bureaucratic hurdles, along with the often confrontational nature of contractor disputes, indicates a fundamental flaw in the legal and institutional framework governing the awarding and subsequent management of public infrastructure projects. As Cyprus looks forward to 2026, a year expected to be a crucial indicator of its infrastructure development, the persistent pattern of delays and cost overruns casts a considerable shadow. A comprehensive reform of existing procedures is urgently needed to ensure the efficient and timely delivery of essential public services and facilities.