State reaches settlement with Cyfield over Akamas road works

The Cypriot government has reached an amicable settlement with the construction company Cyfield following the termination of its contract for the first phase of road projects in the Akamas region. The agreement was confirmed by Costas Konstantinou, permanent secretary of the Environment Department, during a presentation of the Agriculture Ministry's €532 million budget to the House finance committee.

A disciplinary investigation concerning extensive breaches of legally binding environmental conditions during the project remains ongoing. The investigation is being conducted by an officer from the Legal Service, and no conclusion has been reached to date. Consequently, the Council of Ministers, which holds the authority to act on the findings, has not yet taken any further steps regarding the matter. The terms of the settlement with Cyfield were not disclosed.

Separately, the Ministry of Agriculture, Rural Development and Environment revealed that 43 per cent of its €532 million budget is allocated to the water sector, marking an increase of €26 million compared to the previous year. This funding increase is primarily driven by the implementation of new mobile desalination units and the procurement of recycled water, as the government works toward securing long-term water needs.