25.04.2024
Larnaca Port and Marina is unprecedented and, based on current data, appears to be under threat.
Until Tuesday afternoon, not only had the disputed port guarantee not been deposited, but Kition Ocean Holdings did not inform about its intentions. This is despite the fact that ten days ago officials of the Roundtown company , which is the main shareholder of Kition , undertook to hand it over to the President of the Republic.
“Our option is to speak to them tomorrow to find out their intentions regarding the guarantee and accordingly we will contact the legal service,” the transport minister said.
“We are faced with a very significant breach of contract; This is a very serious situation, and our attitude must be equally serious,” said Vafeades , noting that terminating a contract is a complex process.
“The contract stipulates that the state will take over management of the port and marina from day one. However, the process is complicated because there are subcontractors with whom the company has entered into contracts. The contract provides that in the event of termination of the contract, a period of complete removal of the contractor must be specified. This makes it possible to negotiate with subcontractors to continue the operation of the port and marina.” He also added that if there are ways to help the contract so that it is not terminated, then this will be done provided that “it is within the scope of the law.”
Meanwhile, the guarantee of 10 million euros for the work of the port expired on January 31, 2024, and without its collateral, as the Legal Service has already reported, the contract cannot remain in force, nor can negotiations with the contractor company continue.
Kition company Ocean Holdings argued that the guarantee amount should be €4.2 million , and submitted a number of requests for changes to the project and the prioritization of land development projects. At a meeting at the Presidential Palace on Monday, April 15, Nikos Christodoulides clarified that the contract cannot enter into force without a guarantee.
It was agreed that the company would contribute the €4.2 million guarantee it wished and the issue would subsequently be resolved through an expedited dispute resolution process.
The intention to provide a guarantee was announced virtually on the same day by Kition Ocean Holdings , its representatives expressed optimism that “through this cooperation, outstanding issues will be quickly resolved and the start of construction work will be expedited as soon as possible.” He also pledged to “maintain a spirit of mutual cooperation to ensure the success of the project.”
However, for unknown reasons, Kition Ocean Holdings did not make a guarantee, knowing that until yesterday a decree was given by the Minister of Transport, who also publicly announced the state’s decision.
It should be noted that Vafeades told the Larnaca Development Committee last Friday that the last instructions from the legal service, before the intervention of Nikos Christodoulides , were for the state to terminate the contract with the contracting company.
