Akamas Audit: Failures and Cost Overruns in Projects

The Audit Office has issued a special report regarding four contracts of the Department of Forests concerning the implementation of two actions of the Sustainable Development Plan (SDP) of the Akamas National Forest Park (NFP), co-funded by the "THALIA 2021-2027" Program with €16.5 million.

The actions concern the improvement of the Park's road network (Phase A') and the construction and management of fourteen infrastructure hubs. The audit focused on the correct application of tendering, award and contract management procedures, in accordance with the principles of sound administration and legality. Environmental consequences will be examined in a subsequent report.

The findings reveal shortcomings and omissions by the Department of Forests, which led to delays, additional costs and failure to safeguard the public interest. In the improvement of the road network, there was a delay in the termination of the construction contract, resulting in additional claims from the contractor of approximately €500,000 and loss of the possibility of liquidating guarantees of €1 million.

Inadequate definition of objectives in the project study, assignment procedures without publication, and delay in securing the Environmental Opinion for the infrastructure hubs were identified, with a cost increase of 135.3% and delays of 89.86% beyond the contractual period. The report highlights the need to improve the procedures of the Department of Forests for the effective implementation of projects in Akamas.

All works in the area have been suspended by decision of the Council of Ministers due to environmental issues.