Larnaca port developer takes government to court

Kition Ocean Holdings, which is overseeing the Larnaca port and marina revamp, has filed a case against the government for causing delays and breaching contract, it emerged on Tuesday.

According to CEO Oliver Corlette, the government has been unwilling to meet the company to discuss a difference in a financial guarantee.

The guarantee is one of three worth €10 million, which the company said needed to be recalculated, something the government refused, leading to the delay in the works.

“We met with them [the government] several times to try and open this discussion, but they refused to discuss the calculation even though it could have been resolved very quickly but to no avail. Last week, we applied to the Cyprus courts seeking an order to get the government to follow the agreement. We respect the court’s proceedings so we will not comment further on this matter,” Corlette said.

He added that Kition Ocean Holdings has also been “threatened” by the government, which, he said, attempted to “bully” the company by saying it would terminate the contract.

Corlette also said the government has been blocking the company from making any statements about the project without state approval.

“What we want to stress is that we care about the project, and we want it to succeed. We have finalised the design and planning, we have applied for the town planning and construction licenses, and we are ready to burst into action. The only thing holding us back is the government’s refusal to follow our agreement and to talk to us expeditiously,” he said.

According to Corlette’s statements, Kition is prepared and fully equipped to begin construction of the project on schedule. The original masterplan, approved by the town planning department, was crafted by US-based engineering firm AECOM, and the first phase of the real estate development is now being designed by the international architectural firm HKS.

This phase also includes collaboration with Cypriot-based design firms to enhance local design expertise.

“The enhancements to the port and marina were designed by Greek firm Rogan, and we have implemented a Design and Build strategy for the marine works. We have received bids and are currently evaluating them to ensure value and precision in our selections,” he said.

Corlette added significant expansions to the port’s capacity are planned, including a new administration building, updated facilities for the navy and marine police, and an agricultural building. These facilities are currently out for tender.

Earlier, Transport Minister Alexis Vafeades said the hold-up on works had been due to the company.

However, later the Larnaca chamber of commerce president Nakis Antoniou said the company had said in an email on Monday that its hands were tied due to the government refusing to discuss certain issues, and asked local stakeholders to apply their influence on the state.

But Vafeades was clear that no discussion can happen by the specially designated expert committee until the outstanding letter is received.

“The contract provides for three letters of guarantee,” Vafeades explained, adding that the first letter from the providing company expired on January 31, and has not been reissued since, as is prescribed.

This letter was to guarantee provision of works to the tune of €10 million, the minister said.

“We are aware the company wanted to change the scope and sequence of the works,” he said, but the end date must be upheld.

As for the apparent secrecy surrounding the contract, the minister noted that “often there are confidentiality clauses, not because they are secret, but for legal reasons the information is only available to certain parties.”

Parliament can have access to this information, in confidential form, should they request it.