The ongoing legal battle between the Republic of Cyprus and Greek contractor Intrakat over the Paphos-Polis highway project is continuing to evolve into a complicated mess with multiple court cases in play.
The central issues include the forfeiture of project guarantees worth 10 million euros, along with millions in damages, all stemming from the termination of Intrakat’s contract for the project.
One of the key points of contention is a €7.2 million letter of guarantee. Cyprus attempted to cash in this guarantee, but sources indicate that they have so far been unsuccessful in redeeming it from the Greek financial institution involved. The Athens Court of First Instance is set to hear both sides next week to decide whether Nicosia can claim the amount.
Intrakat, now part of the Aktor Group, has claimed victory in multiple court rulings, including one that prevented Cyprus from forfeiting the letters of guarantee. Intrakat’s representatives argue that the court’s rejections highlight the mistakes made by Nicosia and the Department of Public Works in handling the termination of the contract. They believe these rulings expose poor management of the project.