The impending scandal around the construction of a new marina in Larnaca has been smoothened.
After a meeting with high-ranking officials, which was attended by Cypriot President Nicos Christodoulides, the consortium Kition Ocean Holdings, responsible for the realization of the large-scale project, agreed to continue to oversee it and to provide a financial guarantee.
By the way, the negotiations took place on Monday, April 15, at the Presidential Palace in Nicosia. They were attended by Larnaca Mayor Andreas Vyras, Deputy Secretary to the President Irini Piki, Head of the Chamber of Commerce and Industry Stavros Stavrou and Deputy Attorney General Savvas Angelidis. During the meeting, Kition Ocean Holdings pledged to deposit in the coming days the amount of financial guarantee required in the first phase, which will allow the project to continue in accordance with the provisions of the contract.
After a productive dialog, it was agreed that Kition Ocean Holdings will provide a financial guarantee of 4.2 million euros. This step will allow for further discussions on the fate of the project. As soon as this amount is transferred by the consortium, the government will start discussing with Kition Ocean Holdings the questions concerning the concession agreement," the consortium representative said.
It should be noted that Andreas Vyras was satisfied with the outcome of the talks, describing the president's speech as "very positive". He said that if there are no force majeure situations, the project will start in June 2024. The mayor of Larnaca added that all conditions are in place for the realization of the grandiose idea. The license for the consortium is expected to be issued on April 26.
The most important thing is that the financial guarantee is deposited, as without it there will be no contract," Vyras emphasized.
Vyras' words were also confirmed by Christodoulides. In particular, the president told the port and marina management company that in order for the contract to be considered valid, the financial guarantee must first be deposited. As a result, the consortium pledged to provide it. Interestingly, the president did not enter into discussions on the other requirements of Kition Ocean Holdings. This will only happen after the required deposit has been made.
Recall that earlier delays in the implementation of the project caused concern among local officials. In turn, the contractor company filed a lawsuit against the government for delay and breach of contract. However, the president said that the state will not be blackmailed and he takes the side of the mayor and deputies of Larnaca.
Project details:
- Larnaca port and marina taken over by an international consortium from April 1, 2022.
- The Port and Marina of Larnaca are leased by the government to the consortium for 40 years and the properties constructed therein will be leased for 125 years.
- The Cyprus government's revenues from the new project are estimated at €12 billion (in lease fees and interest on profits).
- Four thousand jobs will be created in the marina and the port of Larnaca.
- The marina is to be built in four phases. Their realization will take 15 years.
- The marina and port will have to be taken over by the government after 40 years.
- The port of Larnaca will be able to accommodate ships up to 450 meters long.
- The marina will have 650 berths for yachts and boats.
This is great news! The development of a new marina in Larnaca will be a huge advantage for the real estate market in the region. The construction of the marina will not only attract new investors and property buyers, but will also create a demand for luxury accommodation amongst outdoor enthusiasts and lovers of living by the sea. The new marina will change the image of Larnaca, making it even more attractive for tourists and locals, commented Irina Eroshenko, Head of DOM Real Estates office in Larnaca.