Transport Minister Alexis Vafeades on Wednesday defended the government’s actions in terminating the Paphos-Polis road contract and responded to criticism from construction company Aktor (formerly Intrakat) CEO Alexandros Exarchou, who is now seeking over €35 million in damages through the courts.
The public works department announced on Monday that the study and construction of the first phase of the Paphos-Polis road has been terminated.
The department attributed the termination to “significant and unjustified delays on the part of the contractor”.
“We are compelled to pursue our legal rights in Cyprus and, if necessary, in Europe,” Exarchou said at an online press conference on Tuesday evening.
Vafeades assured that the Paphos-Polis highway remains a high priority and will be completed in three years.
Regarding the contractor’s statement that they would seek €35 million in damages, Vafeades rejected the claim, citing legal grounds and adding that the government followed the procedures as outlined by law.
“We did everything within the contractual limits to reach a resolution,” he told StockWatch, questioning whether critics expected the government to yield to the contractor’s demands for an additional €36 million and a 59-month extension.
Vafeades also responded to former Transport Minister Yiannis Karousos’ complaint about not being invited to the Nicosia-Limassol peripheral highway inauguration, a project initiated under former President Nicos Anastasiades.
Vafeades acknowledged the oversight but explained that it was unintentional. He suggested that Karousos should have addressed his concerns privately, adding that had he invited the former minister, he would also have had to invite him when meeting residents of the delayed Akrounta-Dierona road project, who were reportedly “furious with him”.
Vafeades then reiterated the government’s rejection of Aktor’s demands for an additional €36 million and extended timelines, adding that the Central Committee on Changes and Claims (CCCC) concluded the contractor was not entitled to compensation or a time extension.
“We gave adequate time to find a solution, but ultimately had to terminate the contract,” he said.
He mentioned that public projects frequently face challenges, referencing the previous administration’s unresolved issues with airports operator Hermes, which the current government addressed.
Addressing the statements made by Exarchou, who cited issues like delays in land expropriations, unsuitable construction materials, and quarry access, Vafeades said that, when the matter will go to court, detailed answers will be provided in coordination with the Legal Service.
“The government intends to seek damages for any increased costs if a new contract exceeds the original cost,” he said.
“If re-tendering results in a higher expense, as expected, the state may pursue the additional costs from the original contractor.”
Regarding the issue stemming from quarry access cited by Exarchou, Vafeades said that the contractor was given the option to use its own machinery to extract the required materials but only attempted this once.
“While the contractor did not completely halt work, it significantly slowed progress, with no concrete work completed over the past eight months, and reported unpaid subcontractors for concrete work,” Vafeades said.
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