Both phases of the Paphos-Polis Chrysochous highway are expected to be put out to tender in 2027, Government Spokesperson Konstantinos Letymbiotis has said, while outlining developments concerning the Paphos Marina project at the Paphos Chamber of Commerce and Industry’s (PCCI) General Assembly.
Addressing the 27 October meeting, Letymbiotis said the highway had been sought by the Paphos district for decades, noting that the Government was working to move the project forward following problems with the previous contract.
The highway’s planning dates back to 1990, while studies carried out in 2007 envisaged its completion in 2013. The contract signed in 2021, worth €73 million, provided for completion by November 2024. However, by January 2023, less than 4% of the contracted work had been completed, according to the figures presented by the Spokesperson.
By October 2024, progress had reached 21.1%, while the contractor was seeking an additional €36.2 million in compensation and a 59-month extension.
“The announcement of a project takes a few minutes. Its implementation requires solid foundations, responsible decisions and continuous supervision,” Letymbiotis said, adding that getting a troubled project back on track could be more difficult than planning one from scratch.
The planned four-lane highway will run in two phases, from Agia Marinouda to Stroumbi and from Stroumbi to Polis Chrysochous. Expropriations and the environmental assessment for the first phase have been completed. A meeting between the Transport Minister, the PCCI and other stakeholders is scheduled for early November to discuss the updated plans.
Regarding Paphos Marina, Letymbiotis said a decision on the evaluation of expressions of interest is expected in early November, with the concession agreement due to be signed in 2027. He also referred to plans to expand Paphos Airport and build a desalination plant in Kissonerga with a daily capacity of 12,000 cubic metres.
On the economy, Letymbiotis said Cyprus had ranked among the EU’s two fastest-growing economies for three consecutive years. Growth reached 4.8% in 2025, more than three times the EU average, while public debt is projected to fall below 49% of GDP in 2026. Unemployment is forecast at 3.8%, and median earnings have risen by around 15%, he added.
PCCI President George Mais called for faster progress on major infrastructure projects, lower energy costs and reduced bureaucracy. Announcing the end of his term, he said he intends to run for vice-president of the Cyprus Chamber of Commerce and Industry in elections on 5 December.
For his part, PCCI Director Marinos Stylianou highlighted the Chamber’s role in supporting local businesses and economic development.
Cyprus Chamber of Commerce and Industry President Stavros Stavrou also cited bureaucracy, staff shortages, access to finance and energy costs as key business challenges, stressing the need for a stable and business-friendly environment.
(Source: CNA)
