The government has terminated its 1.2 billion euro investment contract with Kition Ocean Holdings for the development of Larnaca port and marina, citing the contractor’s failure to renew a required guarantee.
Transport Minister Alexis Vafeades said the government would seek compensation from Kition and pursue outstanding guarantees through legal channels. He acknowledged “something has gone wrong” with the contract and pledged a review to identify and rectify any issues.
The government has activated “Plan B,” which involves re-tendering the project. Vafeades will meet with Larnaca stakeholders on Friday to discuss the new approach.
“The state is ready to operate the port without any interruption,” Vafeades said, adding that measures have been taken to ensure continued operations.
Kition did not participate in a scheduled meeting on Monday to discuss the transition process.
The government maintains its commitment to the project and will pursue alternative means for its realisation. Vafeades declined to comment on specific mistakes within the contract, citing the ongoing legal situation.
“We have an obligation to evaluate what has gone wrong,” he said, indicating a future review.
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port. government, investment contract, Larnaca port and marina