The termination of the contract with Kition Ocean Holdings for the €1.2 billion investment in Larnaca port and marina raises many questions.
As previously reported, the Government delivered a termination letter to the contractor this morning, with immediate effect.
This means, according to government sources, that a process is now underway for the state to take over Larnaca port and marina, whose smooth operation is not expected to be affected.
The Cyprus Port Authority, which will assume management, and the Police, in case their ‘discreet intervention’ is needed, have already been informed.
It is noted that a meeting scheduled for 12 noon with the company to discuss the smooth handover of the port and marina to the state was postponed since Kition, according to the same sources, refused to show up.
This indicates that the company may implement its warning of resorting to the Cypriot courts, as its CEO, Oliver Corlette, warned in an interview last Saturday.
If the company refuses to hand over the port and marina and goes to court, the state will also file a lawsuit to secure a decree granting it management. According to information, if a decree is issued granting management of the port and marina to the state and this is ignored by the company, the Government will again go to court for non-compliance with the decree.
To discuss the next steps, a new meeting with the Law Office will be held today.
The Ministry of Transport announced on Monday that “a termination notice has been delivered to Kition Ocean Holdings Ltd regarding the concession agreement for the integrated development project of Larnaca port and marina”.
In this context, it notes that “all necessary actions are being taken to ensure a smooth transition and uninterrupted continuation of the port and marina operations, through the assumption of management by the Cyprus Port Authority and the state”.
It adds that “the Ministry of Labour and Social Insurance has called for a meeting with the representatives of the employees for information and coordination regarding the implementation of labour laws and the safeguarding of their rights”.
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