6 Major Projects Worth Over €1.6 Billion Terminated During Christodoulides’ Administration

6 Major Projects Worth Over €1.6 Billion Terminated During Christodoulides’ Administration

Six Key Infrastructure Projects Face Termination Amid Delays, Mismanagement, and Legal Disputes

During Nikos Christodoulides’ presidency, six significant public projects have been put on hold. While varying in nature, these projects share three common factors:

  1. Origins: All projects were initiated and signed under the previous government.

  2. Contractor Issues: Contractors faced challenges completing, delivering, or managing the projects without delays or problems.

  3. Audit Warnings: The Audit Office had issued warnings about contracts or progress for almost all these projects.

>>Opinion: The Significant and Trivial Aspects of Public Contract Failures<<

As a result, the government decided to terminate the contracts, leading to project cancellations worth over €1.6 billion. Although not all funds were spent, delays have caused societal challenges, including increased costs for citizens due to taxation and rising prices, Brief reports.

Key Projects and Their Challenges

1. Pentakomo Waste Management Facility

The contract for the €40 million waste management project in Pentakomo was terminated in December 2023. The state, with Audit Office backing, took over operations to ensure functionality until a new tender is issued, likely in 2025.

2. Larnaca Port and Marina

In May 2024, the government ended the €1.2 billion agreement with Kition for the development of Larnaca’s port and marina. Local officials supported the decision, urging swift action to find a new investor. The Ministry of Transport is now exploring options, with a likely separation of the port and marina development in future tenders.

3. Vasilikos LNG Terminal

In July 2024, the project for an LNG terminal in Vasilikos collapsed due to disputes between ETYFA and a Chinese consortium. The €500 million project faced prolonged disagreements, with the floating storage unit (Prometheus) held in Shanghai as leverage. After negotiations, Prometheus was secured and will likely be relocated to Egypt for certification. The government plans to issue new tenders soon.

4. e-Justice System

The €6.2 million e-Justice digital system failed shortly after its January 2024 launch. Despite efforts to resolve issues, the government terminated the contract in October 2024. Discussions are ongoing for either a new tender or enhancement of the existing i-Justice system.

5. Paphos–Polis Highway

The contractor for the €80 million highway was informed of contract termination in November 2024 due to significant delays, with only 21% completion. While the contractor disputes claims, the government plans to retender the project, aiming for completion within three years.

6. Liopetri River Project

The €8 million Liopetri River fishing shelter project faced delays and was terminated in November 2024. Initially set for completion in March 2023, a granted extension pushed the deadline to January 2025. However, slow progress led to the contract’s cancellation, affecting local fishermen and businesses.

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