Friday, April 15, 2022

CYPRUS - A CONSTRUCTION 'SITE' OF €1.2 billion

 Filenews 15 April 2022



A committee has been set up to examine the problems created by the increase in the cost of construction materials, the Minister of Transport, Yiannis Karousos, said during the on-site examination of the progress of the project for phase A1 of the Limassol-Saita motorway.

Specifically, the Minister mentioned that Cyprus today is a large construction site since important projects are in progress or at the tendering stage with a total budget of €1.2 billion. Regarding the increase in the cost of construction materials, he noted that he is concerned and stressed that there are provisions for compensation to contractors for some of the problems created. For the other problems that arise, a committee has been set up to examine these issues.

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Regarding the progress of the project, he noted that we are satisfied with the observance of the schedule. There are some minor delays due to the pandemic and the connection process with the Limassol sewerage system. He said that a project so important for mountainous Limassol is in progress without any substantial problem. As far as the second phase is concerned, it will be announced before the end of the first phase of the project. He stressed that the aim is to start projects for this strand in 2024.

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Mr. Marinos Mousiouttas, representing the Transport Committee of the Parliament, said that within the framework of the committee's activities, they visit development projects throughout Cyprus. The purpose of these actions is to inform about the progress of the projects and to contribute to the solution of any problems. For this particular project everything is going smoothly he noted. As far as material increases are concerned, he noted that as far as he knows there are clauses in the contracts that cover this part.

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On his part, Kyriakos Chrysohoos, Director of CYFIELD, says that at the given time there is a significant risk for the project and concerns the increases in construction materials. They get close to the point where we can't pay the materials he noted and pointed out that for the iron alone they have given two million euros more than they estimated. I understand that a committee has been set up in the public works department to deal with the matter and I hope that it will make decisions quickly because every contractor has the limits on increases.

The project

Various issues were discussed on the table, such as road lighting, which does not exist during the execution of the project, making it difficult for drivers, and it was mentioned that this is a difficult task that is being carried out on the existing road network.

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The project was awarded to the contractor, which is Cyfield Construction Ltd., for the amount of €26,126,000 additional VAT.

Phase A1 concerns the section Polemidia – Palodia, approximately 3.6 km long. Specifically, it will cover the distance from the Spyros Kyprianou Sports Center (Palais de Sport) to the access to the community of Palodia and is a continuation of Giannou Kranidiotis Avenue. The motorway will be four lanes with a central dividing island. The project also includes, among other things, a secondary road network of a total length of about 7 km, an interchange in the Palodia area, four roundabouts, an overpass, an underpass and retaining walls.

The project is expected to be completed by the end of 2023.