PAPHOS-POLIS ROAD - THE TENDER FOR A PROJECT OF OVER €100 million ENDS TODAY - POSSIBLE APPEALS AND RISK FROM THE PRICE RALLY ARE A THORN IN THE SIDE - Filenews 17/4 by Angelos Nikolaou
After successive delays and legal battles, the tender for one of the most important road projects in Cyprus, for the Agia Marinouda - Stroumbi section, is completed today. The rejection of AKTOR's appeal paves the way, but international oil prices and the fear of new hierarchical appeals keep the Department of Public Works on alert.
The path to date has not been simple, but has been characterized by a legal challenge, successive extensions and changes in the international economic environment. The Government, however, has expressed its commitment to proceed with the Paphos-Polis Chrysochous highway within the prescribed procedures and appears prepared to deal with any new delay attempts.
The tender was announced on August 8, 2025, with an initial bidding date of November 7, 2025 and the cost exceeding €100 million. On August 18, 2025, AKTOR filed an appeal with the Tender Review Authority (AAP), requesting the annulment of the tender and the imposition of restrictive measures.
On 22 August 2025, the AAP issued prohibitive measures, suspending the award process. The suspension was maintained until the final decision of the Authority, on November 19, 2025, which rejected in their entirety the grounds for annulment invoked by the applicant company.
An interim decision of the AAP on October 24, 2025 had extended the deadline for submitting bids until February 6, 2026. Following the lifting of the prohibitive measures, the deadline was moved first to February 27, then to March 27 and, most recently, to April 17, 2026.
The latest extension was given at the request of economic operators and contractors, with the aim of expanding participation and strengthening competition. By March 13, 2026, 64 enquiries had been submitted within the deadline, to which the Department of Public Works responded through 11 clarifying documents (addendum), providing additional information on the scope of the Contract. The number of inquiries is an indication of significant market interest and, according to the Department, is expected to translate into a satisfactory number of offers.
The international situation and the possible new appeal are a risk
Despite the smooth course of the last phase, the tender remains exposed to two main risks, which must be highlighted transparently.
The first is related to the international situation. Developments in the Persian Gulf and the rapid increase in the price of petroleum products may lead to bids with an increased amount compared to the estimate of the Department of Public Works prepared in May 2025, before the change in international data. This is a factor outside the control of the Government, which, however, is closely monitored in order to make the appropriate decisions during the evaluation stage.
The second risk concerns the possibility of submitting a Hierarchical Appeal to the Tender Review Authority after the award. Such a development could delay the start of work again, as was the case in the previous phase of the tender. The Government, having already gained significant experience from the management of the previous appeal, declares itself ready to face, with absolute respect for the institutions and legal procedures, any attempt to delay. The position expressed by competent sources is that, in the event of a new dispute, the positions of the contracting authority will be defended fully and quickly, so that any delay is limited to the minimum possible time.
The evaluation of the tenders will be made on the basis of the legal procedures, with the aim of immediate award to the successful economic operator and the start of work in the shortest possible time, provided that no Hierarchical Appeal will be submitted. The duration of the Contract has been set at 30 months.
The picture that is being formed is that of a process that, despite delays and uncertainties, is heading towards completion. Whether the new timetable will be adhered to without further obstacles will be judged in the coming weeks and the Government, based on the statements of the competent services, has already prepared for both possibilities.
