Larnaca Seeks Clarity on Marina Project Amid Credit Dispute

14 May 2024

    Dispute Over Larnaca Marina and Port Development Project Escalates

    In the coastal city of Larnaca, a significant development project is facing uncertainty as the local municipality calls for transparency regarding the marina and port development. The project, valued at €1.2 billion, has hit a snag due to a credit dispute between the concession holder, Kition Ocean Holdings, and the Cypriot government.

    The municipality’s development committee is pressing Transport Minister Alexis Vafeades for a detailed briefing on the status of the project, particularly concerning the involvement of current or potential investors. With the future of the project in jeopardy, local officials are exploring alternative options should the partnership with Kition Ocean Holdings dissolve.

    At the heart of the contention is Kition’s reluctance to renew an Operation & Maintenance (O&M) guarantee, a move that has prompted the transport minister to seek counsel from the attorney-general. The municipality has also expressed frustration with Kition’s failure to collect a construction permit issued on April 26, despite it being ready for pickup.

    The credit report dispute further escalated when Kition did not adhere to an agreement made at the presidential palace on April 15, where they were to provide a reduced guarantee of €4.2 million instead of the €10 million initially demanded by the government. The deadline passed without action from Kition, leading to increased legal scrutiny.

    Since signing the contract in 2020, Kition has been criticized for a lack of progress on the marina and port, aside from increasing docking fees. The project, slated for completion by 2025, has seen multiple extensions due to COVID-19 complications. The government is now considering terminating the contract with Kition as one of its options.

    The situation remains tense as stakeholders await a decision from the government, which may come within two weeks. This credit dispute not only affects the future of Larnaca’s marina and port but also reflects on the broader challenges of public-private partnerships in large-scale infrastructure projects.

    marina and port development

    Whats the current status of the Larnaca marina and port development project in dispute with Kition Ocean Holdings?

    The Larnaca marina and port project, managed by Kition Ocean Holdings, is currently in a complex legal dispute, with negotiations ongoing to resolve contractual disagreements and ensure the projects progression.

    Can the transport minister clarify the status of Larnacas marina and port development project in dispute?

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