The cabinet has approved a deal that provides for a reduction in the cost of garbage collection in the Larnaca and Famagusta districts, Interior Minister Socratis Hasikos said on Wednesday.
Following “tough negotiations” the government managed to cut the cost of collection and processing from €75 per tonne to €39.90, the minister said.
The agreement, struck between the government and the operator of the waste disposal unit in Koshi, will run until 2027.
“The initial deal was very bad and unfair for the state and the taxpayer,” Hasikos said after the cabinet meeting.
Hasikos had ordered an inquiry in 2013, as the contract signed by the previous administration in 2010 was believed to be extremely favourable for the private contractor. This resulted in high garbage fees for local residents.
For the first four years, residents will pay around €27 per tonne, Hasikos said, since a €10 mln additional cost has been covered by the government.
The minister said the findings of the administrative probe have been forwarded to the Legal Service and the auditor-general.
“This contract was scandalous,” Hasikos said. He added that the current administration was “trying to reverse or improve things wherever we can.”