Cyprus’ Auditor General recently brought to light a €1.5 million renovation venture that proceeded without competitive bidding, formal permits, or a signed contract until the last minute. This project, intended to modernize local government offices in the former Nicosia Water Supply Council (SYL) building, ended up costing taxpayers more than initially projected.
According to reports, the contract was awarded to a single contractor under an ‘emergency’ provision—although no genuine urgency was clearly justified. By using this loophole, officials bypassed the standard procurement process, effectively shutting out any possible competition.
One of the most striking revelations is that construction was already underway when the relevant planning and building permits were officially submitted. Even more unexpected, the building was reportedly occupied prior to receiving any essential approvals. Official endorsement of the no-tender process eventually came, but only when the project was nearly complete.
The formal contract was signed in early June—long after the renovation was well on its way. As a result, the contractor had considerable bargaining power, leading to an increase in the final figure to €1.54 million (excluding VAT), surpassing the early estimates by about €200,000. There was also a so-called “fast-track” fee of €100,000 paid out, despite the fact that the expedited timeline had already been achieved through unconventional means.
According to the Auditor General’s investigation, such practices are not isolated incidents. Alleged last-minute justifications of “urgent need” appear to be used more frequently to skip mandatory competitive procedures, raising wider concerns about transparency in Cyprus’ public sector.
While modernizing local government is an important goal, it must be accomplished with fiscal responsibility and transparency. Public trust erodes when deals that should be handled through open bidding are decided behind closed doors.
Incidents like this can influence public confidence in the real estate and construction sectors. If you’re tracking opportunities or simply want to stay well-informed about new projects, you may also want to explore our listings in Nicosia. Looking for budget-friendly options? Check out our curated selection of Cheap Houses and Villas for Sale in Cyprus to stay ahead of market opportunities.
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