The course of works to build a dock and install two underwater pipes to transport liquefied petroleum gas to the harbour area in Zygi (Vasiliko) highlights the inability of the state to implement a substantial development project within a set timeframe and budget, the auditor-general said on Tuesday.

In a report on the project’s progress, auditor-general Andreas Papaconstantinou noted that although the facility is a key part of the republic’s energy policy, only eight per cent of the overall time spent so far has been devoted to actual work, while the remaining 92 per cent has been consumed by “discussions and preparations”.

Initial discussions began in 2015, with the cabinet approving the project in October 2021 and declaring it “urgent”. The contract was signed in June 2024, and the works were meant to be completed by August 2025.

Papaconstantinou points out that 18 months passed from the date the tender documents were prepared and the tender was launched. Amendments followed, doubling the length of the contract from five to ten months and revising the estimated cost by an additional 12.2 per cent, just 11 days before the deadline for bids.

The bids submitted were found to contain serious grounds for rejection, and the auditor-general said the competition should have been cancelled and relaunched, but this did not occur.

Ten months later – when the project should already have been finished – payments for completed works amounted to only about 50 per cent of the contract’s net value.

On August 2, 2025, the Cyprus ports authority, without approval of the public procurement committee, instructed the contractor to change the route of the pipelines, which translated into more time and money.

Overall, the project’s cost is now 28.7 per cent higher than the initial estimate and 14.7 per cent above the final revised estimate.

“Without overlooking the particularities of the project, the course of its implementation constitutes a characteristic case of the state’s inability to carry out a substantial development project fast, effectively, within the estimated timeframes and within the estimated cost,” Papaconstantinou points out.

The report contains a series of recommendations, including training Cyprus ports authority staff in procurement procedures.

The members of staff who deal with tenders should also record all information taken into account when compiling a report, which would be scrutinised by the board of directors.

It also urges the authority to launch tenders in good time and avoid unjustified amendments during an active bidding process.

Finally, the auditor-general noted that bonuses for contractors completing work ahead of schedule should be reserved for exceptional and justified cases – and must never exceed the potential cost of delays.