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A new report by the Auditor General has confirmed what many in the construction world have been whispering for years: that a handful of “national contractors” are calling the shots when it comes to Cyprus’ biggest public works projects.
Kathimerini's Apostolos Tomaras reported that according to the audit, three companies, Cyfield, Iacovou, and Cybarco, cornered a staggering 40.8% of the total market value of public construction contracts, even though they took on just 13% of the total number of projects.
Between 2021 and 2024, only 60% of tenders attracted at least three bidders, while 14% saw no competition at all, according to the audit.
That concentration, the Auditor General warns, points to a shrinking pool of major players dominating state contracts. Cyfield, in particular, topped the market share list for four straight years (2019–2023), a streak the report says could indicate a “dominant position” forming in the sector.
“A lack of sufficient options limits the state’s negotiating power,” the Auditor General noted, adding that authorities may end up “forced to repeatedly work with contractors who do not always perform adequately.”
Delays and Doubts
The report also raises red flags over whether these companies have the capacity to handle so many large-scale projects at once. Some public works, it says, have been delayed by an average of 461 days, roughly 77% longer than planned, with others still unfinished.
The findings suggest that the bigger the project, the longer the wait.
Small Players, Smaller Slice
Despite the dominance of the “big three,” most public contracts in Cyprus, about 80% of the total number, are awarded to smaller or individual contractors. But their combined value doesn’t even reach 40% of the total market.
Out of 2,164 total contracts, 1,734 went to small firms, showing a market split where many share the crumbs while a few feast on the multi-million-euro deals.
Competition Still Limited
Between 2021 and 2024, only 60% of tenders attracted at least three bidders, while 14% saw no competition at all, according to the audit.
The Auditor General is urging the state to protect what’s left of open competition, saying both over-concentration and over-fragmentation can distort the system and hurt taxpayers.
“Preventing excessive concentration or fragmentation is essential for a healthy, competitive market, one that benefits the economy and, ultimately, the citizens,” the report concludes.
In a country where public contracts often spell big money and even bigger influence, the findings serve as a timely reminder: transparency and fair competition aren’t just good governance ideals; they’re the foundation of public trust.
