Opinion
By Yiannos Stavrinides
Cyprus is struggling with long and costly delays in major infrastructure projects, with some of the country’s most high-profile developments still stuck in limbo.
At the center of the problem are three flagship projects that have been heavily promoted over the years but remain unfinished: the Paphos–Polis highway, the Larnaca port redevelopment, and the energy terminal in Vasilikos.
The first two are seen as vital for local economies, while the Vasilikos terminal is considered strategically important for the country’s wider economic future.
But behind the political announcements, the delays are stacking up, along with the cost.
International data cited in the analysis of around 500 major infrastructure projects shows a familiar pattern: about 70% of projects exceed their original deadlines, often ending up taking 75% longer than planned.
And when projects run late, the bill doesn’t just sit on paper; it grows in real terms.
Direct costs include extra payments to contractors, financing expenses, and the economic burden on users who are forced to wait. Inflation in materials and labor pushes prices up over time, and while contracts often include penalties, experience shows contractors frequently recover costs through additional claims and project changes.
Financing costs can also spiral. Funding may be lost, grants withdrawn, or loans extended for longer periods, meaning higher interest payments. When debt is involved, delays quickly turn into expensive borrowing.
Then there is the public impact. A delayed road, for example, translates into longer travel times and higher fuel consumption. In simple terms, people spend more time and money just getting where they need to go. One estimate suggests that even a small regional road can generate around €100,000 in added monthly cost when delayed.
But experts warn that the indirect costs are far greater and harder to measure.
These include lost productivity, missed economic opportunities, and income that never materializes because projects are not completed on time. Delays in one project can also trigger a chain reaction, slowing down or even cancelling other planned developments due to budget constraints.
There are also broader social consequences: strain on public services, environmental pressure in affected areas, and communities left waiting for promised development that keeps getting pushed back.
In large-scale projects like the Vasilikos energy terminal, the stakes are even higher. Each year of delay can add an estimated 5% to the project’s original value in additional costs alone, turning delays into billion-euro losses over time.
So why does this keep happening?
According to the findings, around 60% of delayed projects suffer from weak or incomplete planning. Common problems include unrealistic timelines, unclear initial requirements, too many agencies involved, poor site management, weak supply chains, and breakdowns in communication between stakeholders.
The message from the analysis is blunt: infrastructure projects are often not treated with the level of urgency and coordination they require.
The suggested fix is equally direct: make major infrastructure a top political and administrative priority from day one and reduce the need for constant crisis management caused by poor planning.
Because in infrastructure, time is not just money; it is a compounding cost, year after year.
