Larnaca municipality will submit a proposal to the government suggesting the temporary management of the marina be handed to the Cyprus Marine and Maritime Institute (CMMI) as a stop gap until a new operator can be found to take over the cancelled development project.

An announcement from the municipality on Monday said the operation of the Larnaca port should remain with the Cyprus Ports Authority for the time being but there were marina projects that needed to be finished.

The CMMI, they said, should be given management of the marina for the time being. The organisation was set up with EU and state funding as a “centre of excellence” in marine and maritime research and development to drive “sustainable blue growth”.

Under the umbrella of the municipality and headed by mayor Andreas Vyras, CMMI includes on its board individuals from shipping, ship management, the marine industry, academia and officialdom.

The local council, Monday’s announcement said, took a unanimous decision to push for CMMI to be allowed to operate the marina “until the completion of planned projects, which have already been announced”.

The local council reacted negatively last week to the government’s surprise announcement that it would be giving over temporary operation of the port and marina to a private company following the cancellation by the state of the original development contract.

It had told the Larnaca council that a decision had been taken to open a new tender for a private company or two to operate and maintain the port and marina during a transition period until a new investor could be found. The temporary contract would not exceed five years.

The council said this decision posed a serious risk to the town, saying that “such agreements and public contracts in the past have created many risks and problems, with endless extensions and time-consuming legal proceedings”.

“The implementation of this decision for a temporary private operator which would not be obliged to invest even a single euro may delay the progress and implementation of the vision for serious investments for many years,” they said.

CMMI was a better solution, the municipality said.

“In the event that the government does not change its decision of November 28 we will call on the people of Larnaca and the wider region to participate in a protest,” the municipality said.

The protest is slated for Saturday outside the port at 11am.

In May this year, the government terminated its agreement with Kition Ocean Holdings, the company it had initially entrusted with a combined project which was set to cost €1.2 billion.

It accused Kition of refusing to pay a requisite financial guarantee for the project’s operation and maintenance.

The government had insisted Kition pay a total of €8m, while Kition believed the figure had been agreed at €4.2m.