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Cyprus is preparing to spend an estimated €68 million on a new headquarters for the Legal Service, €23 million more than the broadly similar project put forward three years ago.
The Transport Ministry announced that the new tender covers the design, construction, and 12-year maintenance of an 11-story building in Nicosia. The estimated €68 million price does not include VAT and will be paid entirely from state funds. ([Gov.cy][1])
Add VAT, and the estimated bill rises to almost €81 million.
That is where the story becomes relevant to every taxpayer. The project planned in 2023 carried an estimated price of €45 million before VAT. Three years later, the state is returning with a building of almost the same overall size, but at a price that is 51% higher.
The new building will cover at least 23,410 square meters. Of that, 16,010 square meters will be above ground, while another 7,400 square meters will be spread across two underground levels.
The earlier version covered approximately 23,300 square meters, according to figures cited by Politis. In other words, the new project is only around 110 square meters larger overall, although the way the space is divided has changed slightly.
The government announcement does not explain what accounts for the additional €23 million.
A project already challenged over its cost
The previous tender became the subject of a heated public dispute in 2023.
At the time, the Audit Office described the proposed building as excessive and wasteful. It questioned whether the amount of office space was justified and argued that less expensive alternatives had not been properly examined.
According to the Audit Office, the immediate and medium-term needs of the Legal Service could potentially have been met by using nearby government buildings. It called those alternatives “incomparably more economical.”
The watchdog also challenged a claim that renting suitable offices would cost the state €7 million a year. It calculated that this would work out at around €38 per square meter each month, well above the Nicosia office rents it cited at the time.
Those were the Audit Office’s findings and were strongly disputed by the Legal Service and those involved in the project.
Politis reports that the 2023 tender was cancelled on Sept. 29 of that year. The government attributed the decision to limited financial room and the need for careful management of public money, rather than directly to the Audit Office’s objections.
The project later returned with an estimated cost of €56 million in 2025, before climbing to €68 million in the tender announced this month, according to the newspaper.
What taxpayers are being asked to fund
The latest tender was launched on Sept. 10, with bids due by Jan. 22, 2027. The contract will be awarded through an open procedure, with price used to determine the most economically advantageous offer.
Work is expected to begin in April 2027. The design and construction period is set at 48 months, meaning the building could be completed in 2031. The contractor will then remain responsible for defects and maintenance for 12 years.
The €68 million remains an estimate rather than the final amount the state will pay. That will depend on the bids submitted and the contract eventually awarded.
But before taxpayers are asked to foot the larger bill, one basic question remains unanswered: What changed between 2023 and 2026 to make a building of almost the same size cost €23 million more?
*Source: Cyprus Ministry of Transport, Cyprus Audit Office, Politis
