Tuesday, August 26, 2025

THE 20 YEAR SAGA OF THE PAPHOS-POLIS CHRYSOCHOUS ROAD - THE HISTORY AND THE €867million

 Filenews 26 August 2025 - by Vasos Vassiliou



It sounds unrealistic, but 20 years have already passed since the cost of the construction of the Paphos – Polis Chrysochous road was estimated, which, of course, was never completed, which, fortunately, is postponed after the year 2030.

If one considers that in order to estimate the cost of the project, it implies that some designs were preceded on which the estimate was based, then it is understood that from the initial conception of the idea, then we go back more than 20 years. And yet, after such a long period of time, the Republic of Cyprus is in a waiting posture, since the decision of the Council of Ministers (6/8/2025) to relaunch the implementation of the project (with the announcement of a tender for the preparation of a study) clashed with a decision of the Tender Review Authority, which "pulled the handbrake" on the intention of the Department of Public Works to sign the relevant contract for the study.

The temporary shipwreck is due to an appeal by the previous contractor "AKTOR GROUP OF COMPANIES". As is known, on November 11, 2024, the government terminated the contract for the construction of "Phase A" of the project, considering that the contractor (AKTOR) does not meet its obligations.

If we take into account that the Revision Authority requested that the "Report of Facts", the "Written Speech of the Applicants" and the "Written Speech of the Contracting Authority" be submitted before it by 03/10/2025, it is understood that there is a way to go and that it is not a matter of days to unblock the whole process.

AKTOR's objection concerned technical, economic and financial specifications. The company also argued that "the importance of taking interim measures lies in ensuring that the legality of the contested decision is checked and that public money is not wasted."

He also claimed that "the tender process is at its initial stage and in view of the short period of time required for the adjudication of the appeal, there will be no delay in the tender process and the public interest will not be endangered". Furthermore, he suggested that "if the tender process proceeds with the illegal terms that have already been pointed out, there is a serious possibility that the project will be awarded to contractors under conditions that will subsequently be deemed illegal or cancellable".

The applicants (AKTOR) also stressed that "without the delivery – receipt of the existing project, a new award procedure cannot proceed, due to the vagueness of the object of the announced contract". AKTOR also pointed out the need for "the Contracting Authority, before the start of any works, to secure environmental approval from the Environmental Authority".

But how did we get here? Based on the discussions held twenty years ago, the project would be implemented using the "study, construction, financing" method. At that time, parcels of land affected by the roadway began to be expropriated and the cost was estimated at €85 million. Although the (then) government did not compensate the owners, at some stage the cost (expropriations) was estimated to amount to €101 million. It is recalled that at that time 9% interest was paid.
At that time, the construction cost was estimated at €274,000,000, plus €101 million of expropriations. The state would pay instalments for about 30 years and, of course, the interest on the loans for the implementation of the project.

How the costs skyrocketed and what the two previous Auditors General argued

At some stage the construction cost was estimated at €307,548,259 but in the course (around 2008) when all [construction costs, expropriations, increase in materials, labour, interest, additional (then) bank claims were taken into account] the amount was estimated at €867 million.

The annual cost (instalment) was estimated at €30.6 million. while in the course of the year it increased to €32 million. But, in the end, the potential bidder demanded €34 million per year for a period of 25.5 years, which raised the cost to €867 million. The project was then put in the refrigerator until the year 2021.

It is noted that during the time of Chrystallas Yiorkadzi at the helm of the Audit Service, the construction of the road was deemed economically unprofitable due to the limited number of vehicles served on this particular road.

Moreover, the former Auditor General, citing a note from the Department of Public Works in which it was recorded that the traffic on the existing Paphos – Polis Chrysochous road is 6,800-10,700 vehicles per day and that based on the geometric standards of the Department of Public Works, the two-lane road has up to 13,000 vehicles/day, had indicated that the proposed road, In addition to being unprofitable, it will be two-lane traffic with geometric highway characteristics, which he deemed dangerous due to the speeds that are estimated to be developed.

Based on the initial plans, the 31 km long Paphos – Polis Chrysochous motorway would consist of four lanes up to Stroumbi and from there to Polis Chrysochous would have two lanes. It would start from the Limassol – Paphos motorway (next to Agia Marinouda) and end at the entrance of Polis Chrysochous. In addition to the main highway, the project included an additional bypass of Polis Chrysochous 3.3 km long, access to Latchi 1.8 km. and connection with the existing Paphos – Polis Chrysochous road, between Mesogi and Tsada, 3.1 km long.

For the completion of the project, as planned, there is a section of another 15 km left. from Stroumbi to the entrance of Polis Chrysochous.

The current (first phase) of the project, which was left in the middle and which was re-announced, concerns a road from Agia Marinouda to Stroumbi, approximately 15.5 km long, with two traffic lanes and with the prospect of constructing the other two lanes in a future phase.

The project includes:

- An uneven junction at the beginning of the project, at the point of connection with the Limassol – Paphos motorway near Agios Marinouda.  

- A level interchange where, according to the preliminary design, the future interchange of Tsada is foreseen.  

- A terminal roundabout after the village of Stroumbi, where, according to the preliminary design, the future Stroumbi/Kathikas  interchange is planned.  

- All the structures provided for in the preliminary design (valley bridges, tunnels, underground and above-ground passages, rainwater drains) will be included in Phase (A) of the two lanes.