Larnaca port and marina financial guarantee still not received

Transport Minister Alexis Vafeadis on Friday said the contractor company’s guarantee for the unified development of the Larnaca Port and Marina has not yet been received.

He noted that a two-day deadline will be granted. If the guarantee is not provided by then, instructions will be sought from the Legal Service.

The minister was making remarks during a discussion and briefing by the Larnaca Urban and Rural Development Committee on the progress of the Larnaca Port and Marina Unified Development Project.

“We want this specific project to be implemented, and we will do whatever is necessary within the framework of legality to implement it,” he stressed.

Kition Ocean Holdings, the consortium responsible for the development of Larnaca port and marina revamp, has recently agreed to renew their financial guarantee after a meeting chaired by President Nikos Christodoulides on Monday at the Presidential Palace.

The amount of the financial guarantee under the contract amounts to €10 million. Up until Monday, the amount placed by the consortium stood at €4.2 million.

This development came after the consortium filed a case against the government for causing delays and breaching contract, claiming the government was unwilling to meet the company to discuss a difference in a financial guarantee.

Speaking on Friday, the transport minister referred to the details of the communications with the company so far. He mentioned Monday’s meeting held at the Presidential Palace under the President Nikos Christodoulides. The minister said that the president did not delve into technical matters and that it was agreed the transport ministry would look into the issues raised by company once the guarantee is submitted

“The company said it was willing to submit it…This happened on Monday, April 15. Today is Friday, April 19, and we have not yet received the guarantee letter…we will wait until Monday, Tuesday, April 22-23, and if it is still not provided, things will be different,” he said.

He noted that “the guarantee is an essential term of the contract and is not something that the state can accept or reject.”

So far, none of the company’s requests have been examined nor have they even been referred to any committee for consideration.

“The contract needs to return to normal, which will occur once the guarantee is submitted,” the minister stressed.

However, he noted that competent committees require time to review the contractor’s requests. Hence, resolving these matters may take longer than a week, as some requests require input from other departments like the Town Planning and Housing Department.

“I do not claim that the whole process will be a smooth ride; anything can happen, but I want you to know that the way we approach the project is of utmost importance; it is of national interest, and it will take our country forward. We want it to be implemented, and we will do whatever is necessary within the framework of legality to implement it.”

Larnaca’s Mayor Andreas Vyras, echoed concerns about project delays, emphasising the need for timely action to ensure the commencement of construction work. Vyras highlighted the company’s forthcoming visit to obtain building permits, signaling progress despite ongoing challenges.

Members of the Larnaca Urban and Rural Development Committee expressed apprehension over the project’s timeline, with construction expected to begin in June.