The opening of two new bids for the Paphos-Polis Chrysochous highway project, covering the section from Agia Marinouda to Stroumpi, has triggered a sharp political reaction over the cost implications of the government's decision to terminate the original contract.
Former Disy president and MP Averof Neophytou was among the first to respond, writing on X that he had warned in a written intervention on 17 November 2024 that cancelling three major infrastructure projects, including the Paphos-Polis road, would lead to higher costs and delays. He noted that the original contract awarded in 2022 stood at €73 million excluding VAT, or approximately €86 million including VAT, and that the government had terminated it citing additional contractor claims of €25 million. Had those claims been met, Neophytou argued, the project could have been completed for a total of €98 million. Instead, the lowest bid submitted in the new tender comes in at €124.85 million excluding VAT. Factoring in the €16 million already paid to the original contractor, he put the total cost at €141 million, and said he did not expect the project to be completed within the current government's term.
Serious questions raised
Famagusta District EOA president Giannis Karousos also weighed in on social media, stating that the project began with an initial contract of €73 million plus VAT before contractor claims pushed the figure to €98 million. Those claims, he said, were rejected "without any meaningful negotiation," leading to the termination of the contract. The new bid, he noted, is "€35 million higher" than the project's €90 million budget, a fact he said "raises serious questions." Karousos asked whether terminating the contract had ultimately served the public interest, arguing that "the taxpayer is being asked to pay at least €43 million more" and adding pointedly that "projects are not terminated for communications purposes."
The ministry's response
The Ministry of Transport, Communications and Works confirmed that two bids were submitted: one by Cyfield Construction Ltd at €124,850,000 and one by the Araco Construction CY Ltd and Geostroy AD joint venture at €128,935,480. The project covers the completion of design and construction of the first section, Phase A, of the Paphos-Polis Chrysochous highway, approximately 15.5 kilometres in length, with two traffic lanes and a climbing lane where required, and provision for two additional future lanes.
The ministry and the Department of Public Works acknowledged that the bids came in above the original estimate and said the evaluation process would be conducted "with full diligence, taking into account current market conditions." On the cost dispute, the ministry argued that had the original contract not been terminated, the total cost would have reached €119 million, with completion no earlier than 2029 and the possibility of further contractor claims. It rejected the figures cited by critics, stating that claims of a cost below €100 million "do not correspond to the contract data, which are published and freely accessible."