An extraordinary meeting was held at the Presidential Palace in Nicosia on Monday 27 May, after which Transport, Communications and Public Works Minister Alexis Vafiades announced that the Cypriot government had decided to terminate the agreement with Kition Ocean Holdings.
Vafiades stressed that the government had no choice but to cancel the agreement unilaterally after the investor company ignored several requests for a financial guarantee. Local officials had previously sought advice from the Legal Service, which said the government had every right to terminate the project.
The company has received four written warnings. But to this day, the required amount has not been paid," says Vafiadis.
In the near future, the port of Larnaca will be returned to the Cypriot government, which will decide its fate.
A new tender will likely have to be issued for the project to move forward. Vafiadis said he plans to visit Larnaca on Friday 31 May to meet with the mayor, Andreas Viras, and the local community to hear their views on the situation. As for Kition Ocean Holdings, the company has yet to comment.
Vafiadis recalled that under the terms of the contract, the investor was obliged to contribute €8 million. Later, the company managed to negotiate with the Cypriot government for €4.3 million. But even this amount was never paid, and instead legal action was taken. The minister said the government had asked the bank for €3.2 million as security for the payment of the project. The request is still being processed.