The latest report by the Audit Office, published today, offers a revealing snapshot of Cyprus’ public construction contracts between 2015 and 2024.
According to data extracted from the electronic public procurement system (eProcurement), while a total of 2,164 public contracts were awarded during that period, a significant share of their total value was concentrated among just three construction groups: Cyfield, Iacovou, and Cybarco.
Although these three contractors undertook only 13% of all public works by number, they secured 40.8% of the total market value. Specifically, Cyfield won 157 public contracts worth €564 million, Iacovou 84 contracts worth €322 million, and Cybarco 40 contracts worth €141 million. The published tables, the report notes, are highly revealing of market concentration trends.
The Audit Office concludes that the data point to “an increasing concentration of the market for large-scale projects in specific contractors.”
Signs of a dominant market position
According to the Audit Office, Cyfield ranked first in market share distribution for four consecutive years (2019–2023), “a fact that could serve as further indication of a dominant market position.”
The report highlights several key concerns:
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A lack of sufficient alternative bidders limits the state’s bargaining power and may force the repetition of partnerships with contractors who do not always perform adequately.
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The concentration of major projects in a few hands raises doubts about whether these firms have the operational capacity to successfully implement multiple projects simultaneously.
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These trends are particularly troubling, the Office notes, as many large-scale projects in Cyprus have suffered serious delays or have remained incomplete.
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Despite this concentration at the top, 80% of all contracts were distributed among small or individual contractors, 1,734 out of 2,164 in total, indicating a fragmented market for smaller-scale works.
Limited competition
The Audit Office found that participation in public tenders ranged from satisfactory to limited. Between 2021 and 2024, 60.3% of tenders attracted at least three bids, while in 14.2% of cases, there was no competition at all.
The report underscores that preventing both over-concentration and excessive fragmentation is essential to maintaining a healthy and competitive market for public works, one that benefits the broader economy and, ultimately, citizens.
Auditor General: “We are not targeting anyone”
In the preface of the report, Auditor General Andreas Papaconstantinou clarifies that the purpose of the analysis is to enhance transparency and accountability in public construction contracting, not to single out or target any company.
He also stresses that the report did not assess the correctness of tender procedures or the subsequent implementation of projects.
“The report aims to present the bigger picture of the construction sector within the framework of transparency and public information,” Papaconstantinou concludes.