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The Trouble with Public Contracts – Billions in Costs and Hassle

Published January 16, 2026, 19:14
The Trouble with Public Contracts – Billions in Costs and Hassle

Public contracts in Cyprus amount to one billion euros annually, with 80% of tenders being conducted by just 20 contracting authorities. Despite this large amount, many projects end in failure, resulting in delays, financial losses, and impacts on the daily lives of citizens. Research has documented cases of major projects being terminated prematurely, such as the Vasilikos terminal, the Larnaca port and marina, the Polis Chrysochous – Paphos road, the Unified Accounting Management System of the state, the Potamos Liopetri fishing shelter, and the “E-justice” electronic justice system. Business owners report that project delays have caused significant financial damage to their businesses, with some considering closure. The delays are due to various factors, such as low pricing by some candidates in order to increase costs later, as well as the systemic disease observed in the awarding of public contracts. The Audit Office conducted an audit of 181 contracts and found significant delays in all projects, some reaching 80% of the original duration. These findings highlight the need for improved management of public contracts in Cyprus.