The government’s decision to terminate contracts with both the contractor and engineer at the Liopetri River fishing shelter project has left significant financial implications, including nearly €1 million in claims from subcontractors and suppliers.
The Cabinet approved compensation of €12,100 for 11 professional fishermen affected by the project delays, who have been forced to dock their vessels at alternative harbours, incurring additional fuel costs and income loss.
Multiple subcontractors have filed legal claims following the contract termination. A lighting supplier secured a court ruling in July for €365,000 plus VAT, with an order requiring 11% of all contractor payments (minimum €20,000 plus VAT) to be directed to them.
Two payments were subsequently made to the contractor – €248,614 and €275,995 – from which the subcontractor should have received €27,348 and €30,360 plus VAT respectively.
A second lawsuit filed in July by the bridge metalwork supplier claims €265,000 plus interest, with the ruling pending.
Additional claims include €353,590 plus VAT from the quay construction subcontractor, while the electronics subcontractor withdrew from the project in April, citing non-payment for approved work valued at €45,064.
The project, which began in September 2020 with an original completion date of March 2023 and a budget of €8,117,000, had been extended by 22 months to January 2025 before the contract was terminated on November 7.
The Audit Office cited unjustified delays and recommended drastic measures against both contractor and engineer.
The Department of Town Planning and Housing terminated the contract after reporting consistently slow progress throughout the project’s duration.
