Stalemate in Larnaca Port and Marina Project
In a recent development that has sent ripples through the Cypriot business community, the ambitious Larnaca port and marina project has hit a significant snag. Kition Ocean Holdings, the managing consortium of the project, has publicly criticized the Ministry of Transport for a lack of clear communication and questioned the government’s commitment to the project’s success.
The consortium expressed its readiness to move forward with the project, emphasizing that it has “secured the necessary capital, assembled a competent team, and established the required processes.” Despite this preparation, Kition Ocean Holdings highlighted an unexpected absence of clarity and consensus on the next steps, particularly regarding operations and maintenance (O&M) guarantees.
Transport Minister Alexis Vafeades had previously indicated that the government would seek legal recourse if Kition failed to submit the agreed financial guarantee. This followed President Nikos Christodoulides’ intervention, which led to a reduction of the guarantee from €10 million to €4.2 million—a decision that faced criticism from some sectors.
Kition Ocean Holdings claimed that although there was an agreement during a meeting chaired by Christodoulides, the ministry did not confirm the discussion’s outcomes or adhere to the dispute resolution timeline set out in the concession agreement. The company is now seeking to establish a “different understanding” and is open to discussions under a new fixed timeline.
The consortium also took issue with Minister Vafeades’ approach, accusing him of conducting negotiations through the media and setting arbitrary deadlines without direct engagement. Kition Ocean Holdings remains hopeful for a dialogue that will resolve matters and allow the project to progress. However, they have not ruled out the possibility of taking the issue to the Cyprus courts if necessary.
As this situation unfolds, stakeholders are closely monitoring how it will impact not only the Larnaca port and marina project but also investor confidence in large-scale developments in Cyprus. The resolution of this dispute is crucial for both the local economy and for future public-private partnerships in the country.
