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Company seeks €22m compensation for Paphos–Polis Chrysochous road

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The progress of the first phase of the construction project for the Paphos – Polis Chrysochous road is concerning, according to the Paphos Chamber of Commerce and Industry.

As stated in a press release, following a briefing from the Director of the Public Works Department, Eleftherios Eleftheriou, the project, with a budget of €75 million, is supposed to be completed by this coming November. However, this appears unfeasible as only 30% of the project has been completed so far.

Additionally, the Chamber’s announcement notes that they have been informed that the construction company is seeking €22 million in compensation, citing issues related to increases in material costs due to the impact of the war in Ukraine, delays in the relocation of the EAC pylons, lack of adequate storage space for inert materials, unsuitability of inert materials, among other reasons.

According to the announcement, the Public Works Department rejects the overwhelming majority of the contractor’s claims and assures that they have been in daily contact with the company’s engineers since the beginning of the project, making every possible effort to resolve the issues and obstacles that arise.

The contractor has submitted a request for an extension of the project completion time by 33 months, and this request is currently before the Central Committee for Changes and Requirements, as noted by the Paphos Chamber of Commerce and Industry.

Based on the above information, it is clear, the announcement adds, that there are serious financial and other claims from the contractor and technical problems leading the project into deadlock.

The Paphos Chamber of Commerce and Industry expresses hope for a swift resolution of differences between the parties and urges against any further unpleasant developments that could freeze or further delay the construction of the project.

They also appeal to the executive authority, particularly to the Minister of Transport, Communications, and Works, Alexis Vafeiadis, and to the contractor to approach the negotiating table in good faith to find a mutually acceptable solution, always within the framework of legality.

As stated, the project is of vital importance for the Paphos region and particularly for the geographical district of Polis Chrysochous, and any further delay or suspension of work cannot be accepted.

It is noted that the Paphos Chamber of Commerce and Industry attended a meeting at the construction site in the Kallepeia area, following an invitation from the Parliamentary Committee on Transport, Communications, and Works, on Friday, 12th April, in the presence of the Director of the Public Works Department.

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