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In today's Oikonomiki, Dorita Yiannakou reports that the ongoing dispute between the Greek construction company Intrakat and the State over the Pafos-Polis Chrysochous motorway project has led to a stalled construction timeline and potential penalties. Intrakat has not been present on-site since April, despite the State's repeated requests for the company to continue work while addressing their ongoing issues.
To address these conflicts, an ad hoc committee was formed to review Intrakat's ten requests for modifications related to the project. This independent committee, consisting of three members from the public sector, completed its review this week, and it may ask for further clarifications later. The amicable settlement process was initiated by the State to explore solutions and is outlined in the contract between the two parties. The committee's recommendations will be submitted to the Central Change Committee (CCC) for a final decision.
Currently, several options are available. If Intrakat fails to comply with its contractual obligations, the State may seize the project and invite new bids from other contractors. Alternatively, Intrakat could choose to withdraw from the project, which would result in penalties. Starting November 26, the construction company will incur a fine of €5,500 per day for each day it does not show up on-site to resume construction. If the amicable settlement process fails and the State must seize the project, it may enforce a performance bond.
Disagreements between the government and Intrakat primarily revolve around issues with earthworks and the suitability of materials for the project’s embankments. The relevant ministry has taken steps to address these concerns, but no construction progress has been made.
Additionally, Intrakat is seeking €30 million in damages, claiming increased material costs of 20-30% due to the war in Ukraine, delays in relocating utility pylons, and inadequate disposal sites for aggregates. The company has also requested a 35-month extension for project completion, which is currently pending before the Central Claims and Claims Committee.
The motorway project aims to create a two-lane road spanning 15.5 kilometers from Agia Marinouda to Strubi, with a total estimated cost of approximately €86.8 million, including VAT. The plan includes future upgrades to a four-lane motorway, featuring various infrastructure elements like tunnels, bridges, and roundabouts. However, the project is unlikely to meet its initial completion deadline of November, as only about 30% of the work has been finished so far.
