A proposed rainwater retention dam in the Peyia municipality has drawn strong opposition from local authorities over safety and environmental concerns, as the project awaits approval from government agencies.
The dam, planned by Aetheria Heights Ltd, a company formerly owned by former Cyprus President George Vasiliou and now transferred to his three children, would serve a large-scale mixed-use development project near a protected Natura 2000 area.
Akamas Mayor Marinos Lambrou has called the proposal “unprecedented” in a letter to authorities, warning of potential catastrophic consequences should the dam fail.
“We will mourn victims,” Lambrou said, noting that the traditional centre of Peyia municipal district lies directly below the proposed construction site.
The mayor accused state departments of “turning a deaf ear” to appeals from local authorities and claimed they were facing “pressure” to approve the project despite community concerns.
The proposed dam, with an estimated construction cost of 3 million euros and planned 24-month completion timeline, would have a capacity of 3,000 square metres and is designed to temporarily collect stormwater and gradually release it to reduce downstream flooding risks.
According to environmental assessments, the project aims to serve a unified development including 250 residential units, a rehabilitation centre, and research and technology facilities, along with an art gallery, shops and restaurants.
The development site borders a residential zone where the same company plans to divide 44 plots, and is located approximately one kilometre from the Natura 2000 network area.
In his letter to planning authorities, Lambrou emphasised that the dam’s location in a mountainous area adjacent to Peyia’s traditional core poses significant risks during extreme weather events.
The municipality highlighted that the development is situated in a Protection Zone (Z1) neighbouring forest land and the Natura 2000 network, raising substantial environmental concerns.
The environmental study for the project claims the dam will not adversely affect populated areas or sensitive land uses in the wider region, as it is not expected to generate noise, air pollutants or odours.
Project developers state their intention is to create a sustainable zero-energy consumption development that would contribute to innovation in sustainability across Cyprus and Europe.
