Filenews 28 September 2025 - by Charalambos Zakos
The Parliament tried to eliminate the "headache" of appeals to all departments of ministries and organizations after the award of tenders last Thursday. However, the new law does not seem to address the root of the problem, while at the same time it causes transparency issues in public procurement, since the new framework reduces control over tenders.
In particular, the Plenary Session of the Parliament decided on Thursday to pass into law the proposal of DISY MPs, Fotini Tsiridou and Charalambos Pazaros, which amends terms concerning the right of companies to appeal to the Tender Review Authority (AAP) after the award of a tender.
With the new legislative framework, it increases to €1 million - from the €500,000 that were in force until today - the amount for which a company can appeal to the AAP.
At the same time, all companies requesting the suspension of the execution of the project will now be required to submit a guarantee, which will be calculated based on the estimated value of the contract.
Although the intentions of the MPs were aimed at dealing with the big problem of delays in public works, the difficulty will continue to exist. This, as several Members have argued, is due to the fact that delays are not rooted in the right of appeal, but in the very contracts and procedures followed.
The position of Ach. Emilianidi
Similar positions had been expressed by the lawyer Achilleas Emilianidis, who, even before the proposal was passed, had pointed out his reservations about whether the new framework would help reduce delays. His opinion was shared by other lawyers during the discussion of the proposal in the competent parliamentary committee.
Speaking to "F", Mr. Emilianidis stressed that the new legislative regulations will not only not solve the problem of delays, but may strengthen corruption. He clarified, however, that his opinion does not concern the MPs who submitted the proposal and does not question their good intentions. As he added, the problem with public procurement is not found in the appeals, but in the tender documents and the decisions of the committees that award the tenders.
According to him, the Tender Review Authority examines about 50 appeals a year, while the examination of a case is completed in a short period of time, within two months at the latest, which proves that the delays in the projects are not due to the companies that appeal.
In addition, he reminded that a strict framework was already in place in Cyprus, as any company that appeals to the Authority is obliged to pay fees of up to €20,000, which are non-refundable, whether they lose or win the appeal.
The General Accounting Office "ran" a study
The new legislative framework may conflict with the results of a study commissioned by the General Accounting Office to modernise and upgrade the procedures for recourse to public contracts, without compromising transparency.
At the beginning of 2025, a contract was signed to prepare an in-depth study and submit recommendations to improve the current system, taking into account developments in the European acquis and the judgments of the Court of Justice of the European Union.
As the Accountant General had stated, the goal is efficiency, speed, simplification of procedures and strengthening transparency in public procurement, for the benefit of all parties involved.
At the same time, the decision for a radical reform of the public procurement system is progressing. It has now been recognized, both by the private and public sectors, that there are pathologies in the existing system and that the way documents are prepared, as well as the award of tenders, should be changed.
What changes
The new law provides safeguards aimed at ensuring the balance between the public interest and the right of economic operators to access justice.
The minimum amount for submitting an appeal to the Tender Review Authority (AAP) was set at one million euros. At the same time, companies requesting the suspension of project execution will have to submit a letter of guarantee, the amount of which will be determined by the AAP based on the estimated value of the contract.
With an amendment by AKEL, which was approved by the Plenary, the maximum amount of the guarantee now corresponds to five months of delay in the execution of a project, instead of the seven months provided for in the original proposal.
In the discussion, AKEL MP, Andreas Pasiourtidis, proposed oral amendments, so that the amount of the guarantee is reduced and the final amount is lower. At the same time, a proposal by DIKO MP, Panikos Leonidou, to set the appeal limit at €1 million - instead of €2 million provided for in the original proposal and the €500,000 that were in force until today. The amendments were approved with 28 votes in favour and one against, that of the MP of the Ecologists, Charalambos Theopemptou.
Mr. Pasiourtidis stated that the limit of €1 million strikes a balance between the right of businesses to appeal and the need to implement projects without undue delays.
Fotini Tsiridou on the delays
The rapporteur of the proposal, DISY MP Fotini Tsiridou, spoke of the "indignation and anger of taxpayers" from the delays in major projects.
As he underlined, the legislation introduces two main changes: the requirement for a letter of guarantee in the case of a temporary decree and the revision of the appeal limit. In this way, he said, abusive practices are prevented, competition is protected and the public interest is ensured.
In the same vein, the co-rapporteur of the proposal, DISY MP, Charalambos Pazaros, noted that the law "radically changes the data on the right of appeal and the completion of public works".
He claimed that abusive appeals have led to "rivalries between companies", citing as an example the case of the Paphos marina, which caused long delays. It clarified that the letter of guarantee will only be returned if the appeal is successful; otherwise it will be confiscated.
For his part, the independent socialist MP, Kostis Efstathiou, argued that the main problem is not the appeals but the contracts themselves, which often have "photographic" terms. He stressed that the solution is to strengthen the AAP, so that it can examine cases more quickly and not to restrict the right to appeal. He added that the Cypriot economy relies on small and medium-sized enterprises, for which the limit of €500,000 was more realistic. He clarified, however, that he will support the legislation due to the reduction in the amount of the guarantee.
DIKO MP, Panikos Leonidou, described the establishment of AAP as "a blessing for the functioning of Democracy", as it enabled small businesses to claim bids. He explained that the initial proposal for a limit of two million. would excessively limit the right of appeal, which is why he proposed a "middle ground" with the €1 million. He underlined that the goal is not to limit the number of entrepreneurs, who anyway have the opportunity to appeal to the Administrative Court, but to protect the public interest and avoid long-term delays.
In a similar line, the MP of DIPA-Cooperation, Marinos Mousiouttas, characterized the limit of one million. "balanced solution".
MP Alexandra Attalidou was also in favour, noting that the malfunctions in the tender procedures are not exclusively due to appeals but also to the administration, which does not always ensure proper and transparent drafting of the terms.
The president of the Ecologists, Stavros Papadouris, underlined that the increase in the limit was expected, as the amount of €500,000 had been set many years ago. "The cost of projects, particularly in the construction sector, has doubled and at some point it had to be adjusted," he said.
