The Cypriot government has vowed to move forward with the construction of the Paphos-Polis Chrysochous highway, despite new legal obstacles posed by the project’s former contractor. Speaking on state radio, Transport, Communications and Works Minister Alexis Vafeadis emphasized that completing the long-delayed road remains a top priority for the government.
Vafeadis noted that the former contractor has previously attempted to disrupt the project, but expressed confidence that the Tenders Review Authority would issue its final decision by early October, allowing the tender process to proceed. He also insisted that the company has no legitimate claims and assured that the state will pursue its rights through the courts, seeking compensation where appropriate.
Tender Fully Suspended
On August 22, 2025, the Tenders Review Authority granted interim measures that fully suspend the tender for completing the design and construction of the Paphos-Polis Chrysochous motorway (Section 1, Phase A). The decision came in response to an appeal by AKTOR, the previous contractor, whose contract had been terminated due to significant delays and concerns that it could not adequately meet its obligations.
In its appeal, AKTOR requested the annulment or modification of certain terms in the new tender, arguing that the conditions violated principles of transparency, equal treatment, and fair competition. The company also cited ambiguities in the definition of “project completion” and raised concerns over insufficient environmental documentation.
The Department of Public Works, through the Legal Service, argued that interim measures should not have been granted at the early stage of the tender, but only after bids were submitted, to avoid delaying the process. However, the Authority ruled that the question-and-answer phase is an essential part of the tender and cannot be excluded from the suspension. Taking into account the public interest, it ordered a complete halt to the awarding or signing of any contract until the appeal is resolved.
In its official decision, the Authority stated:
“Considering the facts of the case and taking into account the public interest, together with the submissions of both parties, we grant interim measures suspending the awarding process, the execution of the contracting authority’s decision, or the signing of the contract in relation to Tender No. ΚΠΣ/12/2025/ΜΚ(Α), titled ‘Completion of the Design and Construction of the Paphos–Polis Chrysochous Highway, Section 1 - Phase (A)’ without any restrictions.”
The Authority set deadlines for the next steps: the Public Works Department must submit its factual report by August 28, AKTOR must file its written pleadings by September 15, and the contracting authority has until October 3 to respond. A hearing will then be scheduled.
Political Fallout
The renewed legal freeze has sparked criticism from former Transport Minister and DISY deputy leader Yiannis Karousos, who accused the government of mismanaging the project.
“The Paphos-Polis Chrysochous road is sinking into new complications, adding to existing challenges,” Karousos said in a written statement. “The tender had barely been announced before decrees were issued at the Review Authority. Meanwhile, costs have soared from €73 million to €120 million, far above the €25 million the contractor had requested to complete the project, and all this without any negotiation.”
He added: “These are the consequences when decisions are driven by communication tactics rather than the public interest.”
Reporting by Kiki Pericleous and Andreas Athanasiou
