Rumours about the €1.2 billion investment in the port and Larnaca marina, which has been much-publicised and described as the largest in Cyprus according to announcements, have now become more pronounced.
This is because no one can say when or if the major projects will actually start.
According to the latest announcements from Kition Ocean Holdings, the projects were supposed to start in May or June; however, there is no activity at the port and marina indicating any intention to begin in the near future.
It should be noted that the company took over the keys to the port and marina from the previous government on April 1, 2022, and as announced, the first phase of the project would commence in April 2023.
Two exact years later, however, very little progress has been made, with the latest extension granted to the contractor company for the commencement of the major works expiring in June.
What is most concerning is that two months before the expiration of the new extension given, the company has not yet clarified the start date for the works, as admitted by the Minister of Transport, Alexis Vafeades, speaking to Phileleftheros.
Vafeades did not hide his intense concern, stating, “If I don’t see any activity at the port and marina, I am not at ease, and I believe that this is the sentiment shared across Cyprus and particularly in Larnaca.”
He indicated that there were previous assurances from the company that preparations for the start of the first phase of the works would be made in April.
The Minister of Transport even sent a new ultimatum to the contracting company, warning that measures would be taken as provided in the contract if the works do not start the coming June.
“We are waiting for them to clarify whether they will proceed in June or not. We know that bids have been submitted, and project insurances have been renewed, which is positive, of course, but the works need to materialize. If I don’t see buildings, I can’t say I am satisfied.”
Asked about the provisions of the contract in case the investor is not consistent with its obligations, he responded that measures would be decided depending on the situation.
“Under certain conditions, it may be called for consultations or a dispute resolution process. The ultimate measure is contract termination, which happens for very serious breaches. My stance remains that I want the project to move forward. However, if the contractor does not show willingness to start the work, then things are not good.”
Another aspect raising questions is the fact that the company has long submitted a request to the competent committee to make changes regarding the sequence of the projects initially announced. “It is not up to the Minister to decide on this,” the Minister of Transport noted, adding that the evaluation process of Kition Ocean Holdings’ request is ongoing.
“The company has stated that it has had these requirements for a while, and it is a process that is underway, the outcome of which I do not know. What remains certain for us is that there are constantly extensions to the contract. However, we need to see the projects at some point.”
Larnaca’s mayor is also very vocal, stating that the city will not accept any further delays in the works or changes to the plan.
Vyra mentioned to our newspaper that he has requested updates from both the Minister of Transport and the contracting company regarding the start of the works.
“We have conveyed that we will not accept any new delays in the works or any infrastructure projects that are not completed as per the agreement,” he noted.
He further added that the last update he received from officials of Aroundtown, the main shareholder of the consortium responsible for the redevelopment of the port and marina, is that they are working on building permits for the first-phase projects, which will be issued in April.
The permits to be issued this month, according to the mayor of Larnaca, concern the marina expansion works and the creation of a road connecting the Phinikoudes coastal front with Larnaca port.
Kition Ocean Holdings, however, remains silent regarding its intentions. As the company’s spokesperson told StockWatch, which highlighted the issue, “based on the contract’s provisions, the company does not have the authority to make statements or updates about the project’s progress. This authority lies solely with the government.”
During the two years that Kition Ocean Holdings has held the keys to the marina and the particularly profitable Larnaca port, it has carried out small-scale works in both the port and the marina related to the smooth operation of the areas.
In October 2022, Larnaca marina opened to the public after some works were carried out in the area, where a café-restaurant, a playground, and a large parking area were created, which is used for a fee by those visiting the area. I
In November of the same year, the commencement of works on the preserved quay was announced, which was supposed to be completed by the summer of 2023.
However, it was later announced that the project would be completed by the end of the same year, while the last date given was that its inauguration would take place in March 2024, something that did not happen.
The works on the quay, as we are informed, have been completed; however, visitors cannot perceive significant changes due to restrictions imposed by the competent state departments, which prohibited changes to the floor and other elements considered preserved. Regarding the inauguration of the project, no other date has been announced.
Last May, actions were taken by the boatmen due to delays in the preserved quay project, who closed the port’s entrance with boats.
Similar actions were taken last year by the owners of pleasure boats in the marina, who protested against the company for increasing mooring fees twice within a year without carrying out significant upgrade works. Strikes by workers at Larnaca port have also been recorded over the last two years.
