Weaknesses in the management of the Republic of Cyprus’s water resources are once again attributed to the Water Development Department (WDD) in a new Special Report by the Audit Office. This is the third such report since April, amid an ongoing water crisis. Following the thematic reports Adaptation of Water Resources Management to Climate Change (29 April 2025) and Water Resources Management in Cyprus (30 September 2025), the new report, published on Tuesday under the title Audit of the Water Development Department, highlights serious omissions that, in a period of prolonged drought, provoke public concern.
Tolerance of overpumping by private operators
A striking example is the failure to apply effective measures against significant overpumping by two private companies in Limassol. According to the Audit Office, these companies continue to operate without adequate oversight, posing risks to the aquifers in the areas where they are active. At the same time, cases are identified of overconsumption and non-billing of water by businesses, as well as delays in advancing projects to bolster water adequacy in areas such as Polis Chrysochous and Tylliria, despite a relevant study being completed in 2022.
This third report on the water issue aims to determine the degree of WDD’s compliance with findings and recommendations from previous audits conducted between 2020 and 2023, and to examine new issues and complaints received. These findings underline the need for better organisation, stricter supervision, and more effective use of WDD’s resources, notes Auditor General Andreas Papaconstantinou in his foreword.
Gaps in monitoring water consumption
Another thematic area with glaring findings concerns omissions and errors in the metering and billing of potable water. For example, at two key intake points (Stavrovouni and Tersefanou), which account for 64% of consumption in Nicosia district, regular inspections were not carried out. The Audit Office recommends that WDD regularly check the accuracy of water meters at these intake points.
Unexplained fluctuations were also observed by WDD in monthly meter comparisons. The Audit Office recommends that WDD investigate significant fluctuations to detect possible faults.
Surprise inspections were not conducted under a programme, nor were their results documented.
WDD lacked access to the Limassol Water Board’s water meters and to the Larnaca Water Board’s telemetry system, making it impossible to ensure the accuracy of billed quantities.
Finally, the computerised Water Billing System shows weaknesses, mainly relating to user rights and access codes.
Uncollected sums reach €106.8 million
The Audit Office also finds serious weaknesses in revenue collection, mainly from local authorities, and in taking legal action to recover arrears. Past-due revenues at WDD stood at €147.7 million on 31 December 2023, up from €137.1 million on 31 December 2022, an increase of €10.6 million or 7.7%. Of this, €69.2 million related to accumulated debts for potable water provided, mainly to local authorities (€46.3 million).
Elsewhere, the report notes that receivables for potable and irrigation water, excluding the value of water supplied to Turkish Cypriots for which data were unavailable, amounted to €106.8 million on 31 December 2024.
Regarding weaknesses in taking legal action to recover arrears, the Audit Office notes that WDD proceeded with significant delays against certain municipalities and communities in Nicosia, Larnaca, and Famagusta districts for potable water debts. No legal action was taken for overdue debts owed by local authorities in Limassol and Paphos districts.
€58.1 million concerns water supplied to Turkish Cypriots
Receivables up to 31 December 2023 include €58.1 million representing the value of water supplied over time to Turkish Cypriot consumers in specific occupied areas of Nicosia, Famagusta, Pyla, and Melousia. This water is not billed due to a policy decision. WDD sought guidance from the Ministry of Foreign Affairs in September 2016, as the amount is not expected to be collected, but had not received a response by January 2025.
Responding on this issue, WDD clarified that the matter was examined by the Financial Management Directorate of the Ministry of Agriculture, which instructed that these amounts be written off from receivables in the Year-End Closing Platform and no longer be included in the overdue revenue statement.
Overpumping endangers the aquifer zone
Returning to the section on overpumping from licensed boreholes by two linked companies, the Audit Office discloses that these boreholes are in Monagroulli, Limassol, and that a Special Report (WDD/01/2020) was issued previously. It warns that overpumping, which continues to this day, endangers the local aquifer zone. The Audit Office attributes the following to WDD:
- It did not take effective measures, under its statutory powers, to stop the overpumping, beyond any legal action.
- It did not take legal action against one company for all periods in which it repeatedly exceeded its permitted abstraction limit, and took no legal action at all against the second company.
For the company against which legal action was taken, the Limassol District Court imposed fines of €400 and €2,000 by decisions dated 26 April 2021 and 25 September 2023, citing as mitigating factors the absence of prior convictions and the company’s admission and full compliance. The Audit Office notes that, by the date of the second decision, the company continued to overpump and already had a conviction from 26 April 2021, which WDD apparently failed to present to the court before the decision.
Disproportionate allocation and possible preferential treatment
The report notes that the above companies also use water from the Lefkara dam to irrigate plantations in Kornos and Delikipos. The Audit Office finds:
- WDD did not re-evaluate the exceptional maximum annual quantity of 200,000 cubic metres approved in 2012 for transferring water from the Lefkara dam to the company’s reservoirs to irrigate plantations in Kornos that lie outside the dam’s irrigation area.
- Between 2018 and 2023 the two companies consumed a combined 28% to 41% of total water consumed from the Lefkara Government Water Works, highlighting a problem of disproportionate allocation for irrigation and possible preferential treatment.
- From a review of WDD’s database of boreholes in Monagroulli, in many cases meter readings were missing, creating the risk of continued overpumping that endangers the local aquifer zone.
- Commenting on these findings, the Water Development Department said it fully adopts the Audit Office’s recommendations and will make every effort to implement them.
Travel allowances paid while vehicles were available
Following a complaint in October 2023 about two Larnaca District Office employees using private cars for official purposes and claiming travel allowances, it was found that the office’s official vehicles were not being used in a way that ensured efficient and economical operation. During May to July 2023, travel allowances were paid for the use of private cars, even though vehicle-tracking records show that up to four official vehicles were available.
Wasteful spending on mobile desalination units: the €20 million unit that ran for only five months
The report closes with an investigation of a March 2025 complaint about wasteful public spending on mobile desalination units, criticising state actions during periods of drought as reactive moves to address the problem.
The complaint cites the mobile desalination unit in Kouklia as a characteristic example. Its construction cost exceeded €20 million, yet it operated only from 22 November 2010 to 11 April 2011. The unit has remained unused since 2011 as it was deemed unnecessary, and equipment worth millions of euros was found abandoned in fields after dismantling.
On this issue, the Ministry of Agriculture responded by letter to the Audit Office on 7 November 2025. The Audit Office concludes that this case once again highlights the absence of a sufficient, well-designed strategic plan, leading the state to take reactive measures during droughts.
Read the full Audit Office report for all findings.