Newsroom
The redevelopment contract for the port and marina of Larnaca has been officially terminated, effective immediately as of 8:30 a.m. on May 27, according to a report by Apostolos Tomaras. Authorities in the Republic of Cyprus have handed over the termination notice to Kition Ocean Holdings.
While detailed reasons for the termination remain undisclosed, sources indicate the decision is linked to the company's negative stance and an opinion requested by the Minister of Transport from the Legal Service. The Ministry of Transport sought legal advice after Kition Ocean Holdings failed to renew one of the three required letters of guarantee, which led to a public dispute.
Transport Minister Alexis Vafeadis has received the legal opinion, addressing all raised concerns. The Ministry of Transport and relevant departments are currently assessing the next steps. Consultations are ongoing, and while no definitive conclusions have been reached, the Legal Department supports that the non-renewal of a letter of guarantee is a serious contractual breach, warranting termination.
In a press conference, Transport Minister Alexis Vafeadis explained, "Our action triggers a process whereby the port and marina are returned to state management. The state is ready to operate the port, ensuring essential services continue to serve Cyprus."
He emphasized that the next few days will be crucial in determining the project's future. Vafeadis announced a forthcoming meeting with Larnaca Mayor Andreas Vyras and the local community to outline the next phase and immediate measures to address the project's issues. "Our commitment is that the project will be implemented," Vafeadis assured, adding that alternative methods will be explored to move forward.
