The Council of Ministers today approved the Finance Ministry’s proposal to establish a Fast-Track Dispute Resolution Mechanism, which will consist of two members of the Public Service appointed by the Central Committee of Changes and Claims (KEAA) and one member appointed by the Cyprus Scientific and Technical Chamber (ETEK).

Finance Minister Makis Keravnos explained that the government inherited problematic public contracts tied up in lengthy court proceedings, leaving major public projects facing significant delays.

Following the Cabinet meeting, the Finance Minister stated that the new mechanism will operate independently and that its composition ensures transparency and impartiality. This amendment, he added, safeguards the principles of transparency, economy, efficiency, and effectiveness, while maintaining the flexibility and speed required for fair and timely dispute resolution.

Keravnos stressed that the mechanism will also strengthen trust between the private and public sectors in the execution of public projects. He said the proposed framework is considerably more effective than the main existing alternative—the adjudication process—which carries notable financial and operational drawbacks for the state. If the three-member panel reaches a unanimous decision, it will be considered final. If not, the case will be referred to the Central Review Committee.

“With today’s Cabinet decision, we are giving a significant boost to the speed of decision-making for projects that have long faced obstacles,” Keravnos noted.

Asked about the expected turnaround time, he said decisions by the Mechanism will be issued within 15 days. He also explained that if the members disagree and the case is forwarded to the KEAA, the project’s stakeholder will be allowed to present arguments—something that does not happen today—ensuring faster and more accurate decisions.

When asked whether a final decision rules out any further appeal to the courts, Keravnos said: “No. It will be definitive.”

Responding to additional questions, he clarified that the Mechanism will be established in the coming period once all relevant parties are informed, and will apply to new projects, as major existing projects are already progressing through other procedures.

The members appointed will be relevant to the nature of each project. For technical works, for example, engineers or other qualified experts from the public sector will be selected.

He added that the three-member committee will be permanent, unless the KEAA decides that a different committee is needed for a specific project. In such cases, two or three committees could operate simultaneously, depending on how many contractual disputes arise.