The government’s plan for a private company to operate the Larnaca port and marina on a temporary basis until a new investor is found to upgrade its infrastructure “puts the development as we imagined it in danger”, the town’s mayor Andreas Vyras said on Friday.
Speaking to local news website Skala Times, he said the government “did not discuss the plans with us”, and that the existence of a temporary private operator may make it more difficult for plans to be devised.
“I think they have not thought this through properly,” he added, saying that the town’s council’s ad hoc committee on the matter will be convened next week to determine its next steps.
“I believe the decision they announced over the marina is a massive risk for Larnaca. From that moment, I cannot tell you right now what steps we will take, we will have to decide that collectively,” he said.
Transport Minister Alexis Vafeades had announced on Thursday that a new tender would be opened for the operation and maintenance of both the port and marina.
He said the winner of the tender would gain the right to operate and maintain the marina for a period of five years, or until the process of finding a new investor to upgrade the marina’s infrastructure is completed.
Cabinet’s decision also authorised the transport ministry to continue operating the marina and carrying out necessary maintenance works until either December 31, 2025, or the date on which a private operator is found, whichever is earlier.
The same rights were afforded to the ports authority to continue to operate Larnaca’s port, subject to the holding of a separate tender for its operation and maintenance.
Explaining the decision to the Cyprus Mail, Vafeades said there are now two “transition periods” – one during which the government will seek private companies to operate both the port and the marina for a period of up to five years, and the second, during which the government will seek a long-term investor to upgrade the infrastructure of both site
“During the first period, we will look for companies to manage and operate the port while we are studying the ideal use and extent of both the port and marina. Then, once that has been decided, we will then seek private investors to carry that out,” he began.
“This process could take up to five years, so we decided to find private companies to operate both sites until that process has been completed,” he said.
The government had announced in August that the development of Larnaca’s port and marina would be split into two projects, while Vafeades also brought forward the expected date of completion to September 2026, compared to the previously estimated date of March 2027.
he move comes after the government had in May 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.
The contract had been terminated after the government had 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.
