Contract Terminations ‘Not Political, But Necessary,’ Says Transport Minister

Header Image

Minister insists contract cancellations followed legal advice and were based on protecting quality, deadlines and the public interest.

The Ministry will never sacrifice the quality or proper execution of a project to serve private interests, no matter how powerful they may be, Minister of Transport, Communications and Works Alexis Vafeades told CNA.

He explained that the termination of the contracts for the Paphos - Polis Chrysochous road and the Larnaca port and marina development followed detailed assessments by the competent services and legal advice from the Attorney-General’s Office. The decision, he stressed, was not a political choice but a necessity arising from the circumstances of each project.

Response to criticism

Asked to comment on criticism by his predecessor Yiannis Karousos, who argued the government chose confrontation instead of negotiation, Vafeades said repeated and intensive efforts had been made to bridge differences between the contractor and the contracting authority at all available levels.

He added that “there was neither lack of will nor inertia” on the Ministry’s part. Although not institutionally obliged, the Ministry’s Permanent Secretary actively assisted in resolving certain issues raised by the contractor, he said.

The Minister further noted that the Department of Public Works fully respected the provisions of the contract, while the Central Committee on Changes and Claims sought to reach an amicable settlement. However, he said the contractor’s demands were unilateral and could not be justified by either the contract or the project’s progress.

“As a result, these efforts did not produce the expected outcome,” he underlined.

Framework of Law and contract

Responding to criticism about a lack of political will, Vafeades said that as political head of the Ministry, he believes projects must be completed strictly within the framework of the contract and legislation. Any government intervention in negotiations or attempts to steer the contracting authority, he stressed, would be both improper and illegal.

Asked whether terminating the contracts for the Larnaca port and marina and the Paphos - Polis road served the public interest, the Minister replied that when a contractor attempts to substantially alter a contract, fails to meet deadlines, shows no intention of completing the work, and submits financial claims deemed unjustified by the competent bodies, then the public interest demands termination.

“Only in this way can the project be assigned to a new contractor, who will commit to delivering it according to the technical specifications and within the agreed timeframe,” he said.

Protecting the public interest

The Minister stressed that protecting the public interest does not only mean timely delivery, but also ensuring the quality standards set out in the specifications. Otherwise, citizens would be forced to pay more for substandard projects, he warned.

Contractor’s financial demands

On claims concerning the Paphos - Polis road, Vafeades clarified that the contractor’s demands amounted to €30 million in April 2024 and had risen to €36 million plus VAT by October, with the final amount uncertain. Regardless of the contractor’s demands, which were deemed unjustified by the Central Committee, any additional financial burden will be pursued through the courts, he said.

CNA