Cyprus’ management of its water resources, at a time of severe drought and mounting climate pressure, shows serious shortcomings, according to a Special Report by the Audit Office. The review found that the Water Development Department (WDD) lacks effective monitoring, pricing, and collection mechanisms, while also delaying key decisions and infrastructure projects.
Poor oversight and lack of transparency in water consumption
In the area of water metering and pricing, the Audit Office found that surprise inspections are not carried out systematically. In Nicosia, where 64% of the district’s consumption is recorded, the accuracy of readings at key metering points is not regularly verified.
At the same time, the WDD does not have access to water meters or telemetry systems operated by various Water Boards, leaving room for errors and potential abuse.
Security gaps in billing system
The computerised Water Billing System also suffers from weaknesses, such as uncontrolled user access, insufficient action logging, and difficulties in generating consolidated data. These issues make it harder to identify errors and to properly monitor outstanding debts.
€147 million in debts and delayed payments
The WDD’s receivables reached €147.7 million at the end of 2023, of which €69.2 million relate to water supply, mainly owed by municipalities and community councils. Despite a previous government decision to write off some of these debts, many local authorities have since created new ones, continuing the same practice of collecting payments from consumers but failing to transfer them to the WDD.
€58 million in unbilled water supplied to Turkish Cypriots
An estimated €58.1 million worth of water has been supplied over the years to Turkish Cypriot consumers without billing, following a long-standing policy decision. The Audit Office notes that the matter has remained unresolved for years, lacking a formal institutional framework.
Overpumping by private companies with minimal penalties
The report also documents cases of overpumping by large companies, particularly in the Monagroulli area, posing a risk of depleting aquifers. Despite the existence of legal tools, penalties were rare and delayed, with fines as low as €400 or €2,000- amounts that are far from deterrent. Small fines fail to encourage responsible management of the limited water resources in Cyprus.
Key projects in Polis Chrysochous and Tylliria frozen since 2022
Although a study was completed to improve water supply in Polis Chrysochous and Tylliria, the projects have not progressed, raising concerns that the data used in the study may now be outdated.
Call for a new water management model
The Audit Office warns that Cyprus cannot continue under the current system. Water resources are limited, demand is rising, and drought is becoming a permanent condition. The report calls for stronger monitoring, reliable measurement, determined collection of debts, and long-term strategic planning.
Also read: Disturbing images of dead fish in near-empty Lefka dam
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