Nicosia municipality on Thursday rejected what it described as “inaccurate reports and personal attacks” against the mayor and its staff, made by a committee of traders and residents opposing the redevelopment of Ledra and Onasagorou streets.

It said it “remains committed to dialogue and cooperation with all those affected”.

The statement responded to the representative committee of shopkeepers and residents of the historic centre of Nicosia, which on Wednesday demanded the resignation of Mayor Charalambos Prountzos.

The committee accused him of mishandling the public consultation and claimed a contract worth tens of thousands of euros with the consultancy firm PwC, paid from municipal funds, was meant to “buy the result” against small businesses and residents.

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The municipality insisted that at least four meetings had taken place with representatives of the store managers’ associations and the recently formed committee.

It said specialised consultants had been secured through the planned public procurement procedure to conduct the dialogue and process its results.

“Those affected have been informed of the proposals and technical specifics of the project,” it said, and their concerns had been recorded so that measures could be taken to limit the impact on businesses and residents during the works.

The municipality said it had secured €10.8 million for the project, titled “Renovation of pedestrian walkways on Ledra and Onasagorou streets”, through the Green Line revitalisation programme.

The programme is a state funded scheme run by the interior ministry to regenerate neglected areas of old Nicosia along the divide.

The project has three phases, with restoration of facades under way, construction on a second phase is due to begin next month and the reconstruction of the roads is under study.

It said the design “is based on the principles of the New European Bauhaus” and that it had planned a “structured democratic dialogue” so that the views of those affected could be used in shaping the final form of the project.

The ‘New European Bauhaus’ is an EU initiative that promotes sustainable and inclusive public spaces.

Affected groups have separately submitted objections to the preliminary proposal, arguing that the available funding is not enough for a full redevelopment and that side streets east of Onasagorou and west of Ledra would be left out.