18.04.2024
Kition Ocean Holdings , the consortium responsible for the development of Larnaca port and marina , agreed to extend its financial guarantee following a meeting on Monday chaired by President Nikos Christodoulides . The amount of financial guarantee under the contract is 10 million euros.
However, the amount placed by the consortium so far is 4.2 million euros. “Following a productive dialogue, it was agreed that Kition Ocean Holdings will place a guarantee in the amount of 4.2 million euros,” the consortium said in a statement. “This step will allow further discussions on the details regarding the specifics of this guarantee amount. Once the guarantee is provided, the government has committed to immediately begin discussions on the company’s various requests as specified in the concession agreement,” the statement said.
The meeting was attended by the Mayor of Larnaca Andreas Viras , Deputy Secretary of the President Irene Piki, President of the Chamber of Commerce and Industry Stavros Stavrou and Deputy Prosecutor General Savvas Angelides . The event was also attended by representatives of the Ministry of Transport, as well as representatives of Kition Ocean Holdings and Roundtown real estate companies.
During the meeting Kition Ocean Holdings has committed to pay the financial guarantee amount in the coming days, which will allow the project to continue in accordance with the provisions of the contract.
Following the meeting, Vyras called the president’s speech “very positive.” Vyras also added that if the contract is implemented at all, the guarantee will have to be extended. “Once the warranty is extended, everything else will proceed according to the terms of the agreement.” He reiterated that the agreement stated that work would begin in June and added that the conditions had already been met as the license would be issued on April 26. He explained that tenders have already been submitted, and both the company and the Ministry of Transport, which is overseeing the contract, are awaiting the implementation of the agreement.
When asked about the amount of the guarantee being paid, he said he could not comment on a lump sum amount, adding that the agreement provided for a dispute resolution process.
During the meeting, Christodoulides emphasized Viras’ statements by informing the port and marina management company that in order for the contract to be considered valid, a financial guarantee must first be posted.
The company agreed to provide a financial guarantee. The president reportedly did not enter into discussions about the company’s other demands as that would occur after the deposit was made.
