Impasse at Larnaca Marina and Port Revamp Sparks High-Level Meeting
As the sun rises on Monday, the halls of the Presidential Palace are set to witness a crucial gathering aimed at navigating the stalemate surrounding the Larnaca marina and port redevelopment. President Nikos Christodoulides is extending his hospitality to key players in this unfolding drama, including representatives from Kition Ocean Holdings, the project’s management company, Antonis Koutsoullis, Director of the Ministry of Transport, and Andreas Vyras, the Mayor of Larnaca.
Transport Minister Alexis Vafeades has voiced his unease regarding the procrastination in commencing construction, echoing the firm stance of Mayor Vyras who has made it clear that any further delays or design changes will not be tolerated. In a robust response to litigation initiated by Kition Ocean Holdings against the state, President Christodoulides has declared that the state will not succumb to any form of coercion. He stands in solidarity with both the mayor and Larnaca MPs concerning the project’s progress and is open to exploring viable solutions that adhere to the agreed construction framework.
The controversy escalated when Kition Ocean Holdings took legal action against the government on Tuesday, accusing it of causing hold-ups and violating contractual obligations. CEO Oliver Corlette pointed out a particular contention over a financial guarantee discrepancy. The company argues that one of three guarantees, collectively valued at €10 million, requires recalculation—a notion the government has dismissed, resulting in a bottleneck for the project. “Despite our attempts to engage in dialogue regarding this financial matter, our efforts were met with resistance. Consequently, we sought judicial intervention to ensure adherence to the contractual agreement,” Corlette explained.
Corlette also mentioned that Kition Ocean Holdings has faced “threats” from the government, which allegedly tried to “bully” the company with talks of contract termination. In contrast, Vafeades has denied such allegations and maintains that the company’s failure to renew a €10 million letter of guarantee constitutes a breach of an essential contract term.
With all eyes on Monday’s meeting, stakeholders are poised on the edge of their seats, hoping for a breakthrough that will set sail to the much-anticipated Larnaca marina and port revamp.
