The three upcoming summer concerts featuring Tom Jones, Ed Sheeran, and Bonnie Tyler that were supposed to be held at the Larnaca marina have been moved to a nearby area called ‘Land of Tomorrow’ due to the government terminating its agreement with Kition Ocean Holdings over the Larnaca port and marina project.
The government reached a deal with Larnaca port and marina workers who were fired by Kition Ocean Holdings. Talks lasted for four hours and the agreement ensures that the 72 dismissed workers will transition their employment to the Larnaca and Famagusta District Development Agency.
President Nikos Christodoulides confirmed that the development of the Larnaca port and marina will proceed as planned, despite setbacks. A cabinet meeting will be held to discuss the issue further, with the aim of finding a capable company to handle the development. The President emphasized the importance of capable companies managing critical projects like the Larnaca port.
The termination of the contract for the development of the Larnaca port and marina was due to a loss of trust and breakdown in communication between the contractor Kition Ocean Holdings and the government. The government sought legal advice and decided to terminate the contract after the company refused to pay the guarantee amount. The Kition CEO blamed the government for the project’s failure, stating that changes were needed to make it viable. The government acknowledges mistakes were made and plans for the project were over-ambitious, making it unviable. If a new company takes on the project, plans need to be modified and scaled down.
The multibillion Larnaca port and marina project was scrapped due to Kition Ocean Holdings being in breach of contract.
The construction of the liquefied natural gas terminal at Vassiliko in Cyprus has been plagued with delays and cost increases, with the project not even halfway completed. The project was awarded to a consortium of Chinese, Greek, and Norwegian interests, with the hope of reducing electricity costs for citizens. However, additional costs have been incurred, such as €25 million due to steel price increases during the pandemic. The Audit Office report highlighted serious political responsibilities for the management of the project by the government. The consortium has filed a case demanding an additional €200 million due to delays. The situation is similar with the Larnaca Port and Marina project, where the company has been collecting revenues without starting the agreed-upon works. Overall, these projects have put the Cypriot citizens at risk of bearing additional costs without seeing the completion of the projects.
Developer Kition Ocean Holdings did not attend a House transport committee meeting, but insisted it was not a sign of disrespect. They tried to attend remotely but were unable to. There is a dispute with authorities over the payment of a financial guarantee for the Larnaca port and marina project. The government expects €10 million, but the company insists on discussing the amount. Transport Minister threatened to take legal action if the full amount was not paid, but Kition only put forward €4.2 million. Differences in opinion remain regarding the guarantee amount, and the construction license for the project is set to be issued soon.
Fact: Kition Ocean Holdings is fully prepared to proceed with the Larnaca port and marina project, but there is a massive gap in mutual understanding between the company and the ministry of transport, leading to ongoing delays and disagreements.