Old gripes about the concession agreement at Limassol port came to the fore in parliament on Monday during a review of the budget of the Cyprus Ports Authority (CPA) for 2025.
Akel MP Andreas Kafkalias complained that the “bad” concession agreement at Limassol – privatising the port’s commercial operations – continues to “exact a price on taxpayers”.
He was referring to a clause in the agreement stipulating that whenever Larnaca port has a higher volume of commercial cargo, then the concession holders in Limassol are entitled to compensation.
Kafkalias said they’ve asked the government for an update on what actions, if any, are being taken to get rid of this clause.
Likewise Alecos Tryfonides of the Dipa party recalled that commercial activities at Larnaca port “are limited to 900,000 tonnes”.
This state of affairs should end as soon as possible, he added.
The MPs were alluding to a clause inserted into the agreement for the development of the new Limassol port and terminal, inaugurated in May of 2018.
The clause put a cap on the volume of cargo to be processed at Larnaca port.
A ceiling of 900,000 tonnes per annum had been placed. It’s understood this term had been intended as an enticement to the Limassol port investors, constraining competition from other ports on the island.
During the discussion of the CPA’s budget, MPs heard the balance sheet for 2025 features €48.9 million in revenues and €40.3 million in expenditures.
Outlining the CPA’s strategic goals for the next five years, chairman Zenonas Apostolou listed the expansion of the industrial port at Vasiliko, the expansion of the port at Latsi and the creation of the first ‘green’ port set to cost €50 million, the completion of an anchorage at Zygi, and the temporary management of the Larnaca port.
For Vasiliko, the government has already applied for EU funding of up to €40 million. The project is expected to finish by mid-2029.
Regarding Latsi, the architectural studies and surveys will be completed in about a year’s time, after which the project will be assigned to a contractor. From then on, it would take 30 months – meaning delivery in mid-2028.
In Zygi, construction of the anchorage has been assigned to a private company; the project is expected to be finished in approximately 10 months.
For the Larnaca port – the running of which reverted to the CPA after the government terminated the concession deal with Kition – the CPA is currently proceeding with the asphalting of some roads.
Quizzed about the situation at Larnaca port, CPA general manager Anthimos Christodoulides confirmed that this year the CPA will pay out around €2.5 million in compensation to former employees of Kition.
This is based on the cabinet decision of August 2024, according to which an amount of some €200,000 would be paid every month to these people up until the end of 2025.
Click here to change your cookie preferences