The Cabinet on Wednesday approved a proposal from the Finance Ministry to establish a fast dispute resolution mechanism aimed at addressing delays in major public works projects.

Finance Minister Makis Keravnos explained that the government had inherited “problematic public contracts” which had been subject to time-consuming court procedures and had resulted in significant delays to important projects.

Keravnos stated after the Cabinet meeting that the mechanism would be independent and its composition would ensure transparency and independence.

The body will be made up of three members. These include two members of the public service, appointed by the Central Committee for Changes and Claims, and one member designated by the Technical Chamber of Cyprus (Etek).

This amendment, he continued, safeguards the principles of transparency, economy, efficiency and effectiveness, while simultaneously maintaining the flexibility and speed required for a fairer and more effective resolution of disputes.

He added that the proposed mechanism significantly outperforms the main alternative option, the critical procedure, which carries substantial financial and operational disadvantages for the public sector.

The minister explained that the mechanism will be independent and decisions from the body will be taken within 15 days.

Should the three members reach a unanimous decision, it will be considered final.

If there is a disagreement, the case will be referred to the central review committee.

Keravnos stressed that “with this decision of the Council of Ministers today, a great boost is given to the speed of decision-making for these projects where we have had all these difficulties until today”.

The minister clarified that if a unanimous decision is reached by the mechanism, it would be “final”, meaning there would be no possibility of appealing the case to the court.

He also mentioned an improvement in the referral process.

If there is a disagreement among the mechanism’s members and the case is referred to the Central Committee for Changes and Claims, the interested party in the project will be allowed to present their arguments, something which is not possible today, so that decisions can be taken quickly and correctly.

Keravnos further explained that the mechanism will be established in the near future after the relevant parties are informed, and it will concern new projects, as “large projects are already in some process“.

In addition, the members of the three-person committee will be permanent and will be related to the nature of the project.

If it is a technical project, he said, they will certainly be technical experts or engineers, adding that “we have many in the public sector”.

He pointed out that more than one committee could operate simultaneously, depending on the number of contract disputes.

On a separate matter, Keravnos was asked about the Eurogroup presidency.

He explained that he is expected to preside over the body’s session for the election of the next President since Cyprus will hold the EU Presidency in the coming semester.

When asked whether he had any personal interest in the role, the Finance Minister said that such positions are political appointments and are not open for public application.

When a journalist suggested that he could still submit a candidacy, the minister declined to engage further and simply said “thank you very much”.