Another One in the Can: Contract for Liopetri Fishing Shelter Terminated
Ministry now seeks alternative solutions to complete the long-delayed project impacting local businesses and community growth
The Cyprus Interior Ministry has terminated its contract with the contractor and project engineer responsible for developing the Liopetri River Fishing Shelter, citing persistent delays and missed deadlines.
According to the Ministry's announcement, the decision followed "extensive efforts to encourage the contractor to meet the project's timeline," which had already been extended multiple times. The Ministry's focus now is on finding the most feasible alternative solution to ensure the project’s completion.
>>Opinion: The Significant and Trivial Aspects of Public Contract Failures<<
The initial contract for the project, valued at €8,117,000, was signed on September 18, 2020, with an expected completion date of March 18, 2023. Despite receiving a total of 22 months of approved extensions, setting the new completion date to January 14, 2025, the contractor continued to show limited progress, government sources say. The Ministry reported that the project was only 55% complete, up from 50% the previous year, indicating a slow pace that hindered cooperation with subcontractors and affected timely project completion.
The Ministry emphasized that prolonged delays have significantly disrupted local businesses, including fishermen and restaurant owners, and stalled community development in the broader area. Without completion and handover of the project, the community cannot realize the anticipated benefits, resulting in further economic and social consequences.
>>Contract with INTRAKAT for the Paphos-Polis Highway Terminated<<
In its evaluation, the Interior Ministry concluded that the severe delay made it impossible to recover lost time. Based on findings from a recent Audit Office report confirming the need for decisive action due to unjustified delays, the Ministry decided to terminate the contract due to the contractor and engineer’s non-compliance.
Moving forward, the Ministry aims to identify and implement the most practical solution to complete the project, taking steps to minimize further delays and costs. The Ministry and the Town Planning Department are currently assessing various measures to expedite project completion under the circumstances.