Following the collapse of the projects in Vasiliko and at the Larnaca Port and Marina, issues have now arisen with the Paphos–Polis Chrysochous highway.

The project was off to a rocky start, with concerns raised early on regarding both its design and cost. The previous contract, which has now been terminated, was estimated to exceed €72 million.

The Public Works Department yesterday, November 11, handed the contractor "INTRAKAT" a 14-day notice of termination. This development was no surprise, given the project's sluggish progress and ongoing disputes, indicating for some time that contract termination was the only viable solution.

In light of these developments, the Minister of Transport, Alexis Vafeadis, is visiting Paphos today to meet with Polis Chrysochous Mayor Yiotis Papachristofi and other local officials. The purpose of the meeting is to brief them on the next steps and revised timelines.

The mayor expressed that the decision to terminate the contract should have been made months ago, following his briefing yesterday.

The project’s delays are evident, with officials stating that only 30% of the work was completed, despite the contract stipulating that it be delivered by November 26, 2024.

According to Public Works Department Director Lefteris Eleftheriou, the contractor had requested a 59-month extension and an additional €36 million to complete the project. The government, however, rejected these demands, asserting that the project can be completed within three years—a timeline it is committed to maintaining.

Given the project's high priority, the government was unwilling to lose more time on a contract that had already faced significant delays. Despite intense efforts to overcome obstacles, the contractor's requests for additional time and costs were deemed excessive by the Central Committee on Changes and Claims (KEAA), leading to the contract’s termination.

The Public Works Department will immediately assess the work completed by the contractor to draft the final account. This evaluation will be conducted in collaboration with the contractor.

Subsequently, new tender documents will be prepared, and the project will be re-awarded. The project is expected to be completed in three years, a more favorable timeframe compared to the contractor’s proposed schedule.

Additionally, the government will seek compensation from the contractor for any extra costs incurred from reassigning the project.

Meanwhile, the Ministry of Transport and the Public Works Department will continue planning and executing Phase B of the project (Stroumpi-Polis Chrysochous) as per the original schedule. This phase is unaffected by the developments in Phase A. The 2026 budget has already allocated funds for this phase.

The project entails the complete design and construction of the Paphos–Polis Chrysochous Highway, Section 1, Phase A, spanning approximately 15.5 km from Agia Marinouda to Stroumpi, with two lanes initially and provisions for two additional lanes in the future.