Larnaca Port project faces uncertainty amid contractual dispute

Investment tensions in Larnaca's port project have reignited following a failed attempt to bridge differences between stakeholders, leaving a crucial guarantee expired and the project's fate uncertain. Despite a recent meeting at the Presidential Palace, which initially appeared promising, President Nicos Christodoulides was unable to broker a resolution. Consequently, the project's contractor allowed one of three guarantees to lapse as of January 31, 2024, casting doubt over the project's continuation and prompting potential legal repercussions.

Kition Ocean Holdings, the project's contractor, has levied blame on Transport Minister Alexis Vafeadi for the impasse, criticizing his public statements on the matter. Moreover, the company declined to attend a parliamentary committee meeting, further stoking tensions and drawing bipartisan criticism. AKEL MP Andreas Pasiourtidis admonished Kition for its absence, urging it to fulfill contractual obligations before pursuing dialogue on raised issues.

Meanwhile, conflicting narratives persist between the government and Kition regarding agreements reached during the Presidential meeting. The government claims acceptance of a reduced guarantee payment, facilitating further negotiations, but Kition insists on confirmation of agreed terms before proceeding. The situation has escalated to potential legal action, with Minister Vafeadi deferring to the Legal Service for guidance amid dwindling patience for Kition's perceived intransigence.

[This article was translated from its Greek original and edited for brevity and clarity]