The government has struck a deal to pay €36 per tonne for the processing of municipal waste at the Koshi treatment plant, compared to €54 up until now.
The price was modified after an agreement signed at the ministry of agriculture.
A statement by the Larnaca-Famagusta Development Agency said the agreement was signed by Mayor of Aradippou Evangelos Evangelides on behalf of the two districts for the utilisation of domestic waste.
The other party to the deal is the consortium operating the waste-processing facility, Helector SA, Elliniki Technodomiki TEV SA, and Cybarco Plc.
The deal was reached following extended haggling with the consortium aimed at the management of the Nicosia district’s waste at the Koshi plant, which also takes in that of the Larnaca and Famagusta districts.
The Koshi facility converts waste to compost.
It’s understood that Helector agreed to lower their rate on condition that the government moves to close the Kotsiatis landfill site and divert the waste from there to Koshi – thereby increasing the volumes of processed waste.
Paphos mayor Phedonas Phedonos has earlier said that €36 per tonne is still too high.
Citing evidence heard in a court case, Phedonos said the real cost to the company of operating Koshi is no more than €24 per tonne. If one added to that a reasonable profit of 10 to 15 per cent, the company should be charging no more than €28 per tonne.
Helector has been embroiled in a corruption and overcharging scandal, now being tried in court.