The implementation of the massive €1.2 billion project to redevelop the Larnaca marina and port is being pushed back indefinitely.
Recently, local authorities said that they have the impression that the company is unable to fulfill its obligations to start construction, which was scheduled for June 2024. In particular, Larnaca Municipality officials emphasized that the doubts they had previously had occasionally crept into their heads had turned into concerns about the possibility of the project failing or taking another form. They also spoke of serious disagreements between the investors who are part of the Kition Ocean Holdings consortium that won the right to develop a state-of-the-art marina in the coastal city. They stated that all attempts to contact the company to find out its intentions have proved futile, as a result of which they are waiting to meet with the minister concerned to clarify the situation.
It is worth mentioning that a year ago there was a change in the shareholders of Kition Ocean Holdings Limited. Part of the consortium's shares were acquired by Roundtown SA, one of the largest listed commercial real estate development companies in Europe.
Kition Ocean Holdings, which was given the key to the project from April 1, 2022, by former Cypriot President Nicos Anastasiades, committed to start major development projects in Larnaca Marina and Port in April 2023. However, not even a few months later, the consortium requested and received a delay in starting work until June 2024. The company failed to fulfill its obligations even on the restoration project of the marina's historic pier, which also started with a long delay. According to the schedule, work on the marina will be completed sometime in late March or early April 2024. At that time, the laying of the first stone should also take place, which will mark the start of the extensive work.
Interestingly, a spokesperson for Kition Ocean Holdings said that "based on the provisions of the contract, the company has no authority to make statements and inform about the progress of the project. Only the government has that jurisdiction." Alexis Vafeadis, Minister of Transportation, Communications and Public Works, expressed serious concerns about the progress of the project.
We have certain obligations to the Cypriot people, there is a contract that we have to follow exactly. If the company fails to fulfill the terms of the contract, we will be obliged to take appropriate measures," Vafeadis said.
Recall that the master plan for the development of the Larnaca port and marina envisages four phases of implementation:
- During the first phase, which will last about 5 years, the port and marina area will be connected to the city's coastal area, the Finikoudes alley and the road leading to Dekelia. In addition, port management buildings, the Maritime Club, a multifunctional center and a passenger terminal will be built.
- The second phase will include the construction of high-rise residential buildings, stores, entertainment facilities and parking lots, and a 5-star hotel overlooking Finicudes and the marina.
- The third phase envisages the construction of a futuristic residential complex with panoramic sea views, which will house a restaurant in addition to apartments. Also in the third phase will be built a hotel, conference center and a complex of private villas with gardens, swimming pools and private berths. On the territory of the new marina will be auxiliary infrastructure, which will include repair shops for yachts, AIK substation and storage facilities for yacht equipment.
- During the final fourth phase of the project will be built another complex of private villas with gardens and swimming pools, several residential and commercial buildings, as well as warehouses in the harbor area.
The cost of the project is estimated at 1.2 billion euros. The period of its realization should be about 12 years.
