Apostolos Tomaras
In Cyprus, the doubling of the cost to complete the Paphos–Polis Chrysochous road is being seen by analysts as less of an exception and more like the rule in a public works system under strain.
The project, first awarded in 2021 and never completed, now reflects a wider pattern: major state projects repeatedly running over budget, delayed for years, and often leaving behind what critics describe as a “strong smell of mismanagement.”
Despite repeated attempts over time to improve how public contracts are handled, large infrastructure projects continue to get stuck in uncertainty, with weak planning, shifting requirements and poor coordination among government agencies often blamed for the outcome.
A key issue highlighted in recent analysis is the long-standing reliance on the lowest bid model, along with contracts awarded in ways that do not always match the real capacity of contractors to deliver. The result, according to the findings, has been repeated failures in some of the largest public projects, pushing final costs sharply higher.
Across Cyprus’ eight biggest state projects, the total gap between original budgets and updated estimates is now around €340 million, with expectations this figure will rise further as delays continue.
And that is only part of the picture. Experts say the real cost is higher when you include the impact of delays, from lost economic activity to everyday inconvenience and, in the case of road projects, even road safety risks and lost lives.
Billions in major projects
Cyprus is currently in the middle of a major public investment cycle worth close to €1 billion across eight large projects. Only three of them are still within budget. The rest show significant cost increases compared to initial estimates.
Among the most problematic are the Vasilikos energy terminal, the Paphos–Polis road, and projects linked to the University of Cyprus.
Two projects, the “Ktizo” housing scheme and the Deneia–Astromeritis road, are the only ones showing no cost overruns so far.
Vasilikos terminal: a costly standstill
The liquefied natural gas terminal at Vasilikos stands out as the most expensive and controversial case.
The project, originally designed to bring natural gas into Cyprus for electricity production, collapsed in 2024 after the contract with a Chinese consortium was terminated. Around 60% of the work had been completed, with €542 million already paid.
But the cost does not stop there. According to 2026 estimates, the delay is now costing the economy around €350 million per year due to higher emissions costs and the continued use of more expensive fuel sources.
In total, the unfinished project is estimated to have cost €1.592 billion so far. The case is also under investigation by the European Public Prosecutor’s Office over possible misuse of EU funds.
Paphos–Polis road: from project to “road of anger”
The Paphos–Polis Chrysochous road has also become a symbol of delays and rising costs.
Work stopped in 2024 after the contract with Intrakat was terminated. Only 30% of the project had been completed, with €16 million already paid.
When the project was retendered in 2026, two new bids came in at €125 million and €129 million, nearly double the original €73 million contract. Including earlier payments and claims, the total cost now climbs to about €141 million, with further claims still pending.
University projects and museum delays
Even smaller-scale public projects are not immune.
At the University of Cyprus, both the Polytechnic and Medical Schools have seen their costs roughly double due to delays, design gaps and repeated changes during construction.
Meanwhile, the New Cyprus Museum, the country’s flagship cultural project, is now expected to open in 2028, delayed by technical requirements, specialized materials, and strict environmental protection standards.
A system under pressure
Taken together, the projects paint a clear picture: Cyprus is investing heavily in infrastructure but struggling to deliver it on time and within budget.
Officials are now warning that without stronger planning, tighter oversight and better coordination from day one, delays will continue to turn public projects into long-term financial burdens, rather than the economic boost they were meant to be.
