Business losses mount as Paphos-Polis road stalls

Paphos citizens are expressing growing frustration over the stalled construction of the Paphos-Polis Chrysochous highway, citing economic and logistical losses from the ongoing delays

According to Dorita Yiannikou's article published in Kathimerini Cyprus in Greek, local business owners and residents claim the deadlock between the Greek construction company Intrakat and the Cypriot government has caused significant setbacks, particularly for the Polis business community.

George May, president of the Pafos Chamber of Commerce and Industry, emphasized the impact on the region's credibility. "The current situation affects our ability to attract investment," he told K, adding that efforts to promote the highway's extension as a vital connection for regional development have stagnated for 25 years. He noted that several projects in the Polis area have halted due to uncertainty, with property values declining as a result.

The delays are also disrupting daily life for Paphos residents, further complicating government efforts to sustain the region's population in smaller towns and villages.

May urged the government, particularly the relevant ministry, to expedite the process. "If no compromise is reached soon, the state must seize the project and call for new bids," he said. Should a solution be found, May stressed that the contractor must honor its agreement and resume work immediately.

An independent committee is currently reviewing the demands made by Intrakat, with the Central Election Commission (CEC) expected to decide on the next steps. Possible outcomes include an amicable settlement, but if Intrakat withdraws from the project, it will face contractual penalties. As of November 26, the state is entitled to impose a daily fine of €5,500 on the company for each day of non-performance. If no resolution is achieved, the government may apply for a performance bond to take control of the project.