Another Roadblock: Paphos–Polis Highway Tender Suspended After AKTOR Appeal

Another Roadblock: Paphos–Polis Highway Tender Suspended After AKTOR Appeal

Review Authority Halts Tender Process, Raising Fresh Uncertainty for Cyprus’s Long-Delayed Infrastructure Project.

The long-delayed Paphos–Polis Chrysochous highway has faced yet another setback after the Review Authority for Public Procurement (RAA) ordered the suspension of the latest tender process. The decision followed an appeal by AKTOR, the construction group that previously held the contract.

On August 22, 2025, the RAA ruled that “temporary measures” must be imposed, effectively freezing the tender procedure for the Completion of Study and Construction of the Paphos–Polis Highway, Section 1 – Phase A. This prevents the government from awarding or signing a contract until the appeal is fully examined.

AKTOR had originally secured the contract but saw it terminated in November 2024, with authorities arguing the company was unable to deliver. The government then relaunched the tender earlier this month with Cabinet approval, only for AKTOR to challenge its legality.

AKTOR’s Grounds for Appeal

In its appeal, AKTOR claimed that the new tender terms violated principles of administrative law, including transparency, equal treatment, and fair competition. The company also pointed to:

  • Ambiguities in the definition of “project completion.”

  • Shortcomings in the handover of works already completed.

  • Lack of environmental approval prior to re-launch.

The firm argued that continuing under these conditions could waste public funds and expose the state to legal and financial risks if contracts were annulled later.

The Department of Public Works, represented by the Legal Service, opposed the suspension, warning that halting the process at this stage would harm the public interest. However, the RAA determined that the inquiry stage of a tender is integral to the process and cannot be exempt from oversight.

Balancing the arguments, the Authority concluded that the highway’s scale and importance justified suspension until the dispute is resolved. The Department of Public Works must now submit its factual report by August 28, while AKTOR has until September 15 to file pleadings. The contracting authority must respond by October 3, after which a hearing will be scheduled.

The ruling marks yet another delay for one of Cyprus’s most anticipated infrastructure projects, already hampered for years by disputes, cancellations, and cost overruns. For residents of Paphos and Polis Chrysochous, who view the highway as critical for connectivity and regional development, the wait grows even longer as legal battles continue.

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