Newsroom
The ongoing legal battle between the Republic of Cyprus and the contractor Intrakat over the Paphos-Polis Chrysochous motorway project continues to create a complicated mess with multiple court cases in play.
According to a report by Dorita Yiannakou, the central issues include the forfeiture of project guarantees worth €10 million, along with millions in damages, all stemming from the termination of Intrakat’s contract for the project.
Intrakat’s representatives argue that the court's rejections highlight the mistakes made by the Ministry and the Department of Public Works in handling the termination of the contract.
One of the key points of contention is a €7.2 million letter of guarantee. The Republic of Cyprus attempted to cash in on this guarantee, but sources indicate that they have so far been unsuccessful in redeeming it from the Greek financial institution involved. The Athens Court of First Instance is set to hear both sides next week to decide whether the Republic of Cyprus can claim the amount.
On the other side, Intrakat, now part of the AKTOR Group, has claimed victory in multiple court rulings, including one that prevented the Republic of Cyprus from forfeiting the letters of guarantee. Intrakat’s representatives argue that the court's rejections highlight the mistakes made by the Ministry and the Department of Public Works in handling the termination of the contract. They believe these rulings expose poor management of the project and the disputes that followed.
Meanwhile, in Cyprus, the Paphos District Court rejected Intrakat's request to block the liquidation of its advance payment guarantee. This means the Republic of Cyprus has moved forward with the necessary legal steps to enforce the decision. Additionally, the court issued an interim order blocking the redemption of the €7.2 million performance bond until the final resolution of Intrakat’s claim in Cyprus courts.
With both sides battling it out in courts in Paphos and Athens, the legal and financial consequences of the contract termination remain unresolved, leaving the situation far from settled.
