Urgent reforms needed in Cyprus water management as audit highlights serious shortcomings

The Audit Office of Cyprus has highlighted the urgent need for action on water resource management, especially in the midst of climate change and the imminent threat of water scarcity.

The management of the Republic of Cyprus’s water resources is of critical importance, the Audit Office notes, as the country faces severe challenges from both water shortages and changing climatic conditions.

In this context, the role of the Water Development Department (DWD), which is responsible for the management and oversight of water resources, is even more vital.

Consumption monitoring

The audit identified weaknesses in water supply metering and billing, documentation of control measures, and verification of water meter accuracy.

Two major intake points, accounting for 64 per cent of consumption in the Nicosia district, were not regularly checked.

The Water Development Department did not have access to the water meters of the Limassol Water Supply Board, nor to the telemetry system of the Larnaca Water Supply Board, creating uncertainty regarding the accuracy of invoiced quantities. Unexplained discrepancies in meter readings were observed but not investigated, and forms were not consistently completed.

The computerised Water Billing System also showed vulnerabilities in access control and data security.

Revenue collection capacity

The amounts recovered by TAY amounted to €147.7 million, of which €69.2 million related to accumulated debts, mainly from Local Authorities (LAs).

Although arrangements were made to cancel old debts on the condition that Local Authorities meet future obligations, new debts have continued to accumulate.

An additional €58.1 million of water has been provided over time to Turkish Cypriot consumers, but has not been invoiced due to a political decision.

Inability to take deterrent measures

The audit also revealed delays in taking legal action to recover debts. In some cases, no proceedings were initiated at all.

Particularly concerning is the lack of effective measures to curb over-pumping by private companies, which continue to operate largely unchecked, threatening the water supply in their areas of operation.

Cases of overconsumption and non-charging of water by businesses were also identified, as well as failure to promote water adequacy projects in areas such as Polis Chrysochous and Tilleria in a timely manner, despite the completion of a relevant study by 2022.

Need for Strengthening Measures

The audit's findings underline the need for better organisation, tighter supervision and more effective use of the Water Development Department’s resources in Cyprus.

Strengthened control mechanisms, timely decision-making, and the development and implementation of a long-term strategic plan, rather than reactive measures to chronic issues, are essential for a modern, responsible, and sustainable water policy.