The Department of Forests’ lengthy tender procedures for leasing aerial firefighting equipment have cost taxpayers dearly, with contract awards reaching €62.5 million compared to initial estimates of €48.8 million, according to a new audit report.
The Audit Office’s report for 2022-2024 highlights a 27.5% increase in tender costs, pointing directly to wastage of public funds during a critical period following Cyprus’s most destructive wildfire in history.
Auditor General Andreas Papaconstantinou noted that these serious weaknesses and omissions occurred in the years following the devastating Arakapas wildfire of July 3, 2021, described as the worst fire in the country’s history, which killed four and destroyed approximately 55 square kilometres of land, including 28 homes and extensive agricultural areas, causing material damages exceeding €15 million with incalculable environmental harm.
The report also highlights that significant delays in managing tenders have resulted in missing part or all of the critical summer period when aerial firefighting capabilities are most essential to protect the country and its natural environment.
According to the report, “the Department’s approach to preparing tender documents has, over time, further reduced the available aircraft for hire and resulted in tenders not being awarded on time or at all”.
This leaves Cyprus without sufficient aerial firefighting capacity for much of the summer period and ultimately forces the government to accept reduced requirements, potentially hiring aircraft and personnel of lower quality and experience compared to initial specifications.
The reduction in available firefighting aircraft has also driven up leasing costs, the report states.
Among the examples cited in the report is the purchase of one aircraft and pilot services for 2025-2027, with renewal rights for 2028-2029, and two aircraft with pilot and maintenance services for the same period. The estimated value was €17.2 million plus VAT, increased from an initial estimate of €13.59 million.
The report notes that while the estimated cost increased significantly by 26.5%, the service duration decreased from five to three years, with other parameters remaining unchanged.
One issue repeatedly hampering the Forestry Department’s tender process concerns safety certificates (EASA or ICAO certification), with inconsistent acceptance criteria leading to complications and delays in securing firefighting aircraft. In some cases, tenders were cancelled, causing further setbacks.
For the leasing of two firefighting aircraft with an estimated cost of €19.7 million, 11 economic operators collected the documents, but none submitted a bid. When re-tendered, 18 operators expressed interest, but only one submitted an offer.
The report also documents a case where an air supervisor was rejected in one tender but accepted without objection in another for the same individual.
In one procurement, award prices were 38% higher than the cost estimate, while another was 27% above estimates.
Regarding helicopter leasing for 2024-2025, with an estimated value of €18.4 million, all bids were rejected because the suppliers failed to submit participation guarantees.
The report also examines the purchase of 42 firefighting vehicles (including maintenance and training) with an estimated value of €11.08 million plus VAT, which were awarded at a price 10% above the initial estimate.
The Audit Office concludes that the Department, as the Contracting Authority, “has failed to manage with the required adequacy the defence of the country with aerial and ground resources, an issue of critical importance for public safety and the protection of the natural wealth of the Republic of Cyprus”.
The report expresses serious concern about poor planning, inadequate market research, inconsistent evaluation criteria, and repeated tender announcements that either failed to attract sufficient offers or resulted in rejections due to exclusive and restrictive technical requirements, particularly regarding the acceptance of only EASA certifications while excluding equivalent ICAO certifications.
Read more:
