Newsroom
The long-awaited Paphos-Polis Chrysochous road project has hit a major roadblock, with construction halted at just 21% completion and the Republic of Cyprus now facing legal challenges from the former contractor, INTRAKAT, according to a report by Kathimerini's Apostolos Tomaras. The dispute centers on claims for additional costs and compensation, adding uncertainty to the timeline and budget of this vital infrastructure development.
Legal Disputes and Contractor Claims
After the termination of its contract, INTRAKAT escalated its claims against the government, demanding €35 million in additional compensation—up from the initial €32.3 million rejected by the Central Claims Committee. The company has also sought legal protection to block the government from cashing in €10 million in project guarantees, with a critical court date set for November 25. INTRAKAT argues that the government’s delays and logistical failures—such as unsuitable excavation materials and delayed expropriations—caused the project’s stagnation.
Government's Defense
The Republic counters that INTRAKAT failed to meet its obligations under the contract, signed in 2022, which required the completion of Phase A by November 2024. The government argues that progress—just 21% over more than a year—was unacceptably slow, despite €16.3 million in payments already made. While acknowledging that costs will now rise and completion will be delayed, the Ministry of Transport estimates Phase A will take three years and Phase B up to four years to finish under a new contractor.
Financial and Social Fallout
The dispute risks further inflating the project’s original €70 million cost for Phase A, with the exact financial burden still uncertain. Delays are also expected to deepen social and economic consequences for the Paphos district, which has long advocated for an upgraded road network to improve safety and connectivity.
Parliament Demands Answers
The Transport Minister and other officials will face scrutiny from Parliament’s Transport Committee, where they must explain what led to the project's derailment, outline the financial implications, and provide updated timelines. All political parties agree on the urgent need to complete the project, which has been in the pipeline since the 1990s.
A History of Delays
The Paphos-Polis Chrysochous road is among Cyprus’s most outdated central routes. Calls for modernization began in the 1990s, but significant progress only started in 2018 with minor upgrades. Phase A involves building a new 15.5 km two-lane section of road, while Phase B focuses on improving the existing network. Despite initial optimism and assurances from INTRAKAT’s leadership, the project is now emblematic of delays and mismanagement.
Next Steps
While Phase B tenders are under evaluation, the government’s immediate focus is resolving legal disputes with INTRAKAT and finding a new contractor to restart Phase A. With a clearer picture expected after the November court hearing and parliamentary discussions, the road project remains an unfinished promise for the people of Paphos.
