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The long-awaited road project connecting Paphos to Polis Chrysochous, which began in May 2021, faces significant delays and potential abandonment. Originally set for completion by November 26, 2024, the project’s future now seems uncertain, plagued by issues reminiscent of the troubled Larnaca port redevelopment.
According to a report in Oikonomiki by Apostolos Tomaras, government officials cannot definitively state the project's fate, while the construction company INTRAKAT attempts to mitigate negative perceptions. Work has slowed to a minimum, and subcontractors are exiting due to funding suspensions. A critical meeting between INTRAKAT’s leadership and Transport Minister Alexis Vafeadis is anticipated, aiming to address two key technical demands from the company.
A major sticking point is INTRAKAT’s claim for an additional €21 million, currently under review by the Central Claims and Claims Committee (CCC). This claim, if approved, would increase the project's cost to €94 million.
Technical demands and government response
In an effort to break the deadlock, the Ministry of Transport and INTRAKAT initiated discussions a month ago. INTRAKAT Vice President & CEO Alexandros Exarchos presented two demands: the utilization of excavated materials for backfill to reduce transportation costs, and access to quarry materials to mitigate high costs due to limited local quarry availability. The government has shown a willingness to accommodate these requests, pending necessary analyses to ensure backfill stability and approval for quarrying activities by the project developer.
Progress and next steps
Government teams have met with relevant departments, including the Geological Survey and Mines, showing a positive outlook on INTRAKAT's requests. However, as of Tuesday, the Transport Minister's office had not received INTRAKAT’s formal recommendations. A follow-up meeting next week is expected to clarify these demands and potentially signal a resumption of work.
Financial disputes
INTRAKAT's 19 submitted requests, leading to an 800-day delay and additional €21 million in costs, are central to the financial dispute with the Ministry of Transport. The company has also pursued legal action over disagreements on the interpretation of unsuitable backfill materials.
INTRAKAT’s position in the industry
INTRAKAT is a significant player in public infrastructure projects in Greece, with operations in Romania, Cyprus, Albania, and North Macedonia. The company's political connections, particularly through Chairman Feroniki Tzavela, a former MEP and New Democracy party member, and Vice Chairman & CEO Alexandros Exarchou, bolster its influence. Exarchou, instrumental in INTRAKAT’s growth since its acquisition by founder Socrates Kokkalis in 1987, continues to play a pivotal role in navigating the company through the current challenges.
