Govt scraps Larnaca marina project (updated)
The multibillion Larnaca port and marina project was scrapped due to Kition Ocean Holdings being in breach of contract.
Kition Ocean Holdings
Larnaca Marina project officially terminated
Kition Ocean Holdings’ investment project for Larnaca’s port and marina has been officially terminated by the Cypriot government due to Kition’s refusal to renew the guarantee for the port, which was considered a breach of contract.
Our View: Investigate costly project disputes inherited by government
The government is currently dealing with disputes with big project contractors, including the potential termination of contracts for the Larnaca port/marina and Vassilikos gas terminal projects. These disputes have arisen due to major disagreements over costs, with some projects heading for costly legal battles. The government has also faced challenges with road construction projects, with disagreements over costs and delays. The government has inherited these issues from the previous administration and may be facing significant financial consequences as a result.
Our View: President acting as deus ex machina needs to end
Presidents of the Republic have historically acted as mediators in disputes, trying to find compromises and solutions. However, recent instances where the president intervened in disputes involving big companies from abroad, such as Kition Ocean Holdings and Chevron, did not yield positive results. This has raised questions about the president’s role in such matters and whether ministers should be left to handle them instead.
Progress on stalled infrastructure projects , – minister
Within the next two weeks, answers will be given for several stalled infrastructure projects, including the impasse over Larnaca’s revamped port with concession holder Kition Ocean Holdings (KOC). The Ministry of Transport is considering the option of canceling the contract with KOC due to breach of contractual terms, which could result in the port reverting to management by the state’s Ports Authority. The ministry is also considering other investors who have shown interest in the project.
Larnaca pleads for information about long-awaited marina project
Larnaca municipality is calling on the transport minister to clarify the status of the local marina and port development project, which is in dispute with the concession holder, Kition Ocean Holdings.
Tales from the Coffeeshop: Cost-cutting: increasing the taxpayer, ’s costs
Fact: Tornaritis is not very popular among Disy supporters because of his two-faced role in the last presidential elections.
Larnaca dockworkers continue strike
Larnaca port is at a standstill due to a strike by dockworkers demanding overtime pay. The strike has caused concerns for the port and the island’s economy. The matter may be referred to the Labour Ministry. Trade unions claim the port operator violated labour agreements regarding overtime schedules and pay. Employers and industrialists criticize the strike as unnecessary and in violation of the Industrial Relations Code. The Cyprus Chamber of Commerce and Industry also condemns the strike and calls for legislative regulation of strikes in essential services.
Major developments underway in Cyprus
Cyprus is experiencing a significant development boom with billions of euros being invested in various projects, including infrastructure improvements, new marinas, hotels, medical centers, university buildings, golf courses, schools, and residential properties. These projects are expected to bring multiple benefits to the country, transforming its landscape and contributing to economic growth. Major investments include golf resorts like Limassol Hills and Eagle Pine, as well as marinas such as Larnaca Marina and the upcoming Paralimni Marina. Education-related developments are also underway, and road infrastructure projects across the island are crucial for improving residents’ quality of life.
Our View: Kition Ocean Holdings cannot be trusted
The government has been pushed into a tight corner by Kition Ocean Holdings, the company responsible for developing Larnaca port and marina, with a contract estimated at €1.2bn. Despite efforts to resolve disputes, Kition failed to pay the €4.2m operation and management guarantee as agreed. The company has shown arrogance and disregard for the legislature, leading to a stalemate in the project. The government is hesitant to terminate the contract due to potential legal battles and delays in finding a new company to take on the project. Transport Minister Alexis Vafeades is seeking advice on how to proceed with the situation.