Paphos is preparing for the largest investment programme in its history. By the end of 2027, the government will invest more than €230 million in the region's development. The funding will be used to implement 75 major and minor infrastructure projects, including road construction, transport network upgrades, modernisation of port infrastructure, and other strategically important developments.
The record level of funding was announced on Friday, 17 July. Paphos has never before received support on this scale for its development. The plans were confirmed twice this year: first by the President of the Republic of Cyprus, Nikos Christodoulides, at the Paphos District Conference, and later by the Minister of Transport, Communications and Works, Alexis Vafeades, during a working meeting with local authorities.
Flagship project: the Paphos–Polis Chrysochous motorway
The region's key infrastructure project remains the construction of the new Paphos–Polis Chrysochous motorway. The government has confirmed that the road will be built as originally planned, featuring four lanes and an additional interchange at Mesogi, abandoning the previously discussed two-lane alternative. The project is regarded as one of the most important infrastructure developments in western Cyprus. The new motorway is expected to significantly reduce travel times between Paphos and Polis, improve road safety, and create new opportunities for tourism, residential development, and business growth.
The original contract was signed in 2021 for approximately €73 million excluding VAT. However, during construction, the contractor requested an additional €36 million and a 59-month extension to the completion deadline. The government considered these demands unjustified and terminated the contract.
Following a new tender, the remaining works were valued at €90.2 million excluding VAT. However, both bids submitted in April 2026 amounted to €124.85 million. The proposals are currently under review, after which the authorities will decide how to proceed with the project.
Which roads and transport projects are planned?
While preparations for the new motorway continue, the Ministry of Transport plans to upgrade the existing Paphos–Polis road to improve safety and increase its capacity. Other projects scheduled for the coming years include:
- construction of the western bypass road around Paphos;
- development of a new road to Paphos International Airport once environmental issues have been resolved;
- reconstruction of the road network in Geroskipou;
- road improvements in Peyia;
- upgrading transport infrastructure in the suburbs of the Municipality of Paphos.
These projects are expected to ease congestion on urban roads, improve transport links to new residential areas, and make the district more attractive to investors.
Paphos Marina and the construction sector continue to grow
Another priority project is the long-awaited Paphos Marina, which is seen as one of the key drivers of tourism, yachting infrastructure, and the luxury property market. At the same time, work continues on the Stroumbi–Polis road, while preparations are underway for a tender to expand the port of Latchi.
Such a large-scale public investment programme is expected to have a significant impact on Cyprus' construction sector. The implementation of 75 projects will create additional demand for construction companies, engineers, architects, and building material suppliers, while also supporting the Paphos property market. Experts expect improvements to the transport infrastructure to increase land and property values across western Cyprus, where demand from both local buyers and international investors remains strong.