Government terminates €1.2 billion Larnaca marina and port contract with Kition

Given the turn of events over the past months, the Government has terminated its contract with Kition Ocean Holdings for the unified development of the marina and the port of Larnaca.

The Ministry of Transport decided to terminate the contract after the Law Office’s opinion on the matter was submitted, in the shadow of the consortium's demands for changes to the contract and in light of its refusal to submit the guarantee that it was required to submit for the project.

The company was informed about the termination of the contract through a relevant letter from the competent Ministry on 27 May.

It is recalled that in his recent statements, Transport Minister Alexis Vafeades had spoken of the government’s Plan B in relation to the project.

The company should return the management of the project to the state, which is expected to grant it to the Cyprus Ports Authority and announce a new tender for a new contractor to be found.

According to reports, at least two consortia have expressed interest.

The official announcement

The termination of the contract was officially announced by the Ministry of Transport, Communications and Works with a notice it issued.

As stated in the announcement, translated from Greek, "The Ministry of Transport, Communications and Works announces that today, Monday 27 May 2024 in the morning, a notice of termination of the concession contract for the project of the unified development of the port and marina of Larnaca has been delivered to the company Kition Ocean Holdings Ltd.

In this context, all the necessary actions are being taken for the smooth transition and seamless continuation of the operation of the port and marina, through the assumption of management by the Cyprus Ports Authority and the state.

At the same time, the Ministry of Labour and Social Insurance has invited the representatives of the workers to a meeting for information and coordination regarding the implementation of labor laws and the safeguarding of their rights".

The exact reasons for the termination of the contract, as well as the roadmap for the Government's actions regarding the next steps of the 1.2 billion euro large development, will be given by the Minister of Transport, Communications and Works, Alexis Vafeades, in the context of a press conference that he is due to give at 12.30pm.

(Source: InBusinessNews)