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13 June, 2024
 
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Government seeks new investor for Larnaca port

Kition Ocean Holdings to challenge contract termination in court

Newsroom

After prolonged negotiations, the government has reached a resolution with the consortium tasked with revamping the port and marina of Larnaca, marking a significant development in a project crucial for the city and province. However, this resolution has stirred fresh tensions as legal proceedings loom large on the horizon.

The conflict between the Republic of Cyprus and Kition Ocean Holdings Ltd is poised to enter the courtroom, adding complexity to an already intricate situation. Despite this, a silver lining emerges as the Port of Larnaca is returned to the jurisdiction of the Port Authority, ensuring uninterrupted port operations and laying the groundwork for seeking new investment opportunities.

Reports indicate that Qatar has shown keen interest in infrastructure investments within Cyprus, a topic discussed during the president's meeting with the Emir of Qatar in Nicosia. Additionally, local stakeholders, including the Larnaca municipal authority, are exploring avenues to engage domestic investors in the port project, with Mayor Andreas Vyras hinting at potential interest from Cypriot investors.

In the wake of contract termination, which was foreshadowed during discussions at the Presidential Palace, the Ministry of Transport has swiftly moved to address legal implications, guided by Minister Alexis Vafeadis. The decision underscores the government's commitment to upholding public procurement obligations and signals a proactive stance to avert similar challenges in future endeavors.

Amidst these developments, attention is drawn to other ongoing projects, such as the Royal project, with analysts highlighting potential implications for future ventures, including the Vasilikos Chinese consortium.

With the immediate focus on restoring port operations and pursuing legal recourse against Kition Ocean Holdings Ltd, discussions are underway to chart the course for future redevelopment initiatives. Mayor Vyras remains hopeful about attracting local investors, suggesting segmented projects for the port and marina to stimulate local interest.

The emergence of Qatar as a prospective investor adds another dimension to the evolving landscape, with talks between Cypriot and Qatari leaders encompassing potential collaborations beyond infrastructure, including energy, finance, and technology.

However, amidst optimism and diplomatic overtures, Kition Ocean Holdings Ltd vehemently opposes the termination of the contract, denouncing it as illegal and detrimental to investor rights. The company vows to contest the decision in court, underscoring its commitment to resolving differences amicably and upholding contractual obligations.

[Summary of Apostolis Tomaras' original story in Greek published in Kathimerini's Cyprus edition]

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Cyprus  |  Larnaca

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