The design and build contract for the Paphos-Polis Chrysochous road, signed in 2021 under the previous administration, was ended because the contractor chose not to continue, the transport ministry said on Saturday after days of criticism on social media.

The ministry said the contractor made “unjustified and excessive” claims, including asking for €36 million in compensation and a 59-month extension for a project valued at approximately €73 million.

These claims were reviewed by the central committee of changes and claims, which found that the contractor had no legal right to them.

The ministry added that the government had exhausted all legal negotiation options before terminating the contract.

Officials emphasised that no payments or approvals would be given to contractors without legal entitlement.

The ministry stated its priority is to restart projects under sustainable and reliable terms, benefiting the public.

Earlier this week, the public works department said the new road linking Paphos and Polis Chrysochous would now cost €90.2m plus VAT, compared to just under €73m when the government first signed a contract with Greek contractor Intrakat in 2021.

Officials explained the increase was due to the tearing up of the contract last year and rising construction costs. They said efforts had been made to resolve issues with Intrakat, which is now operating as Aktor.

By April 2024, work had largely stopped, with only excavations taking place on a small section.

Intrakat had requested an additional €30m and a 34-month extension in April 2023, which by October had risen to €34m and 59 months, despite the project being only 21.1 per cent complete.

The department said repeated concerns had been raised in meetings and letters, but that termination of the contract became unavoidable.

It has since demanded that Aktor pay the guarantees promised in the event of non-completion, with the case now before the courts.

Meanwhile, Aktor won a stay from the tenders review authority, which suspended the launch of a new tender process until the company’s appeal against the cancellation is examined.