As the €1.2 billion investment finds itself in the crossfire, the state and Kition Ocean Holdings are called upon to prevent a fiasco that would primarily affect the residents of Larnaca, who have been waiting for 20 years for the development of the port and marina.
The President of the Republic is expected to play a pivotal role in the effort to resolve the deadlock, having opened a communication channel with Kition and simultaneously conveying that “the state cannot be blackmailed.”
Relations between the two parties reached a breaking point after Kition refused to renew a €10 million port guarantee that expired on January 31, which, according to the Law Office’s opinion, constitutes a breach of a fundamental term of the contract.
The contractor submitted a series of requests for changes in the order of works and also took legal action to secure a unilateral order, preventing the state from cashing in two other guarantees currently in effect.
Fuel was added to the fire by statements from Kition’s CEO, who shifted all blame for the deadlock onto the government, which in turn denied the company’s claims.
In an attempt to find a resolution and advance the investment, the President of the Republic responded to the call of the Larnaca Municipality, announcing that he requested the Minister of Transport to arrange a meeting with Kition officials.
Speaking at the naming ceremony of the Oroklini Community Stadium, President Christodoulides assured that the government is aligned with Larnaca’s stakeholders. “I am ready to discuss, listen to approaches, and find solutions, all within the agreed framework,” he stated, sending a clear message to the company that “as a state, we are not subject to blackmail, but, I repeat, we are here to address the problems that have arisen, always within the agreed framework.”
Meanwhile, Larnaca’s stakeholders are in turmoil, and on April 19, following an initiative by the Municipality, the Larnaca Development Committee will convene, attended by the Minister of Transport, to be briefed on the issues that have emerged in the project’s implementation.
As Larnaca mayor, Andreas Vyras told Phileleftheros his recommendation is to form a committee including himself, members of parliament, and city stakeholders to engage with both parties.
“Our position is that the project must begin in June, and we will not accept the non-completion of all the infrastructure works included in the agreement. If the project does not start in June, we will react strongly in every direction. We will do everything to ensure the project starts,” Vyras said.
Furthermore, Phileleftheros has learned that the developments are being monitored by the Audit Service, which is being informed and acts as an observer in the competent committee. As mentioned to us, when the Audit Office conducts an inspection, it will publicise its findings.
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