Insider Economy Private sector services keep the state going

Private sector services keep the state going

Ministries, semi-state authorities and other government services are reaching out to the private sector for all kind of services in a bid to meet various needs, Phileleftheros reports.

Such services are provided by consultants, lawyers and actuaries who carry out specialised studies on behalf of the state. Translation services are also in high demand.

Latest figures sent to Parliament show that just for the Ministries of Labour, Transport, Justice and Energy the cost for services from the private sector that were frozen in the 2020 state budget was over €20 million.

And if funds to be spent by other ministries and government services on outside services are also calculated, the amount will almost double.

Data analysis shows that the Ministry of Transport strongly depends on the services market since it is expected to  spend about €15.5 million on them this year. This amount includes consultancy fees on the expansion and creation of an industrial port at Vasilikos area.

The Transport Ministry will also carry out studies on other services under its jurisdiction with most funds to go towards the needs of the civil aviation and the electro-mechanical department.

In addition, the Ministry of Energy has reached a €3.3 million agreement for the provision of energy consulting services such as studies, external contract preparation, seismic data coding, auditing, legal, accounting and technical services. All this is in regard to potential hydrocarbon deposits within the EEZ of Cyprus, and for the energy centre to be set up at Vasiliko.

In addition, consultancy services will be provided for the development and production plan of Aphrodite plot. An additional €1.1 million will be paid by the Treasury for contractual services it has already received from consultants.

In the meantime, a request by the Ministry of Labour for a release €1.9 million was sent to parliament last week. And the Ministry of Justice has also requested immediate release of funds for the island’s Central Prison.

The Ombudsman’s office has also hired private sector services at the cost of €21,900 to cover fees for translation of forms, letters, interpreters and the security of the premises.

In addition, the Protection of Competition Authority will have to pay €164,168 for consulting services regarding specialised legal advise, digitization of files etc.


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