Uncertainty Looms Over Larnaca Port and Marina Development
The much-anticipated major projects at the Larnaca port and marina, a cornerstone of the largest investment in Cyprus, are facing significant delays. The commencement of these projects, which are part of a €1.2 billion investment plan, remains uncertain as the company involved is alleged to have breached a key term of the agreement with the government.
According to the original timelines obtained by Phileleftheros, not only should the construction projects have already begun, but some should have been completed by now. The detailed schedule, available since May 2022 on the e-Procurement platform, outlined a phased approach with Phase A set to be finished by March 31, 2027. This phase includes extensive works on the marina and port, alongside infrastructure and real estate development.
Despite the schedule indicating that renovations at the preserved quay and marina dredging should be complete, sources suggest that there is no official completion certification. Local residents have expressed dissatisfaction with the outcomes so far, particularly with the preserved quay which shows little improvement after being closed for over a year.
The delay in major projects has led to an extension granted by the state, pushing the start date to June 2024. However, Kition Ocean Holdings, backed by real estate titan Aroundtown, failed to renew a critical €10 million guarantee for the port. The company has since requested alterations in the project order for Phase A, aiming to prioritize real estate developments.
This move has escalated tensions between Kition and the government, resulting in legal action and a temporary court order preventing the state from claiming funds from other guarantees. The Nicosia District Court has scheduled a hearing on April 15 to deliberate on the matter.
In response to these developments, Kition has begun licensing procedures for the first phase but has yet to confirm a start date. Failure to commence construction in June could lead to further contractual breaches.
A pivotal meeting is set for Monday at the Presidential Palace, where officials from Kition will discuss potential resolutions with the President of the Republic and other key stakeholders. The President has firmly stated that the state will not succumb to any form of blackmail.
The situation will also be reviewed by the Larnaca Development Committee next Friday and in a joint session by the Parliamentary Committees on Transport and Oversight. The outcomes of these discussions could shape the future trajectory of this significant investment in Cyprus.
