Today at 11:00 at the Presidential Palace, President of the Republic Nikos Christodoulides will chair a meeting to discuss the unified development of Larnaca port and marina.
Representatives from Kition Ocean Holdings and Aroundtown companies, along with the Mayor of Larnaca, the President of the Cyprus Chamber of Commerce and Industry (CCCI), the Deputy Attorney General, and the Director-General of the Ministry of Transport, will attend the meeting.
As announced on Friday by Government Spokesman Konstantinos Letymbiotis, “the President of the Republic had publicly expressed his intention for this meeting to take place,” which will occur on Monday, 15th April, at 11:00 am, at the Presidential Palace, “to discuss the issue related to the project.”
Responding to a statement by the responsible Minister that the company is unwilling to provide a performance bond, when asked if the Government discerns any change in the company’s stance, Letymbiotis stated that “so far we haven’t noticed any change,” and that is the reason, as he said, “why the meeting at the level of the President of the Republic will take place, precisely to discuss these issues, which have concerned both the Government and the local community.”
The company took over the keys to the port and marina from the previous Government on 1st April 2022 and, as announced, would commence the first phase of the project amounting to €1.2 billion in April 2023.
The company’s last extension for the commencement of major works expires in June.
As Transport Minister Alexis Vafeades had stated, the company violated a significant term of the contract by not renewing the last €10 million performance bond.
He also mentioned that the state has the right to cash in the remaining bonds that are in effect.
The company claims that it submitted requests to modify the project implementation phases, which are essential for its sustainability, and that a disagreement arose between Kition and the Government regarding the calculation of the un-renewed bond amount.
It also contends that the Government refused to participate in the renegotiation process of this amount, as stipulated by the Contract. The company has filed a lawsuit requesting a Court decision directing the Government to adhere to the Contract.
