The €1.2 billion Larnaca Port project is clouded in secrecy, with details of the contract and progress being kept hidden from the public and officials. Stakeholders are expressing growing concerns over the lack of transparency and uncertainty surrounding the project’s timeline, demanding greater accountability and clarity.
What is the current status of the Larnaca Port project and why is it shrouded in secrecy?
The Larnaca Port and marina project, worth €1.2 billion, faces delays and a lack of transparency. Despite its grand vision, details on the contract and progress are withheld from the public and officials. Stakeholders express concerns over secrecy and the project’s uncertain timeline. Demands for accountability and clarity are growing as the project’s future remains uncertain.
Unprecedented Investment in Infrastructure
Larnaca’s port and marina project, valued at €1.2 billion, has been hailed as the most ambitious infrastructure initiative ever undertaken on the island. Two years ago, the project was launched with great fanfare by the outgoing President Nicos Anastasiades, who had expressed his contentment with this significant venture that had been in the pipeline for many years. The project entails extensive development, including the construction of villas, commercial centers, two universities, two hotels, and three apartment blocks, which are set to redefine Larnaca’s landscape and economic prospects.
However, despite the project’s grandeur and potential benefits, a veil of secrecy surrounds its execution. The public and officials alike have been left in the dark, with no visibility on the contract’s details, schedule, or current status. Nakis Antoniou, President of the Larnaca Chamber of Commerce, has voiced concern over the lack of transparency, noting that not even the ministry or the port authorities have been granted access to the vital documents.
Delays and Stakeholder Concerns
The Cypriot-Israeli consortium Kition Ocean Holdings, responsible for the project’s execution, has revealed that works were scheduled to commence between May and June. Yet, there are no signs of activity at the site, casting doubt on the project’s timeline. The Minister of Transport, Alexis Vafeades, has shared his unease over the repeated delays, hinting at contract termination as a possible last resort. He also mentioned that the company requested changes in the sequence of works, over which his ministry does not hold jurisdiction.
Moreover, the project has attracted international attention with the involvement of global real estate giant Aroundtown SA, led by Israeli tycoon Yakir Gabay, who also possesses Cypriot citizenship. Aroundtown SA has acquired an 80 percent stake in the project, adding to its extensive investment portfolio on the island, which includes a notable €856 million project in Limassol.
The Quest for Transparency
Demands for transparency have escalated, with local stakeholders and members of parliament advocating for a clearer understanding of the project’s implications and framework. Diko MP Michalis Yiakoumi highlighted the upcoming discussion at the House transport committee on April 18 as an opportunity to investigate the causes of delay and demand access to the agreement.
Akel MP Andreas Pasiourtides recalled that MPs had sought details as early as 2021 during the contract negotiations, only to be stalled by confidentiality clauses once the contract was signed. Despite these barriers, there is a legal process that can grant MPs access to the document. Pasiourtides also mentioned that the government had set specific conditions, such as the retention of existing port users and a cap on activities, which have since been removed.
Recent Developments and Stakeholder Reactions
In light of the stalled project, a few minor developments were observed in October 2022, including the opening of a café, playground facilities, and a parking lot where fees are charged. Some renovation work was also done on one quay in November. Yet, these actions seem to have fallen short of the larger expectations for the project’s progress.
The lack of information and progress has astounded many, including ETEK President Constantinos Constanti, who emphasized the public’s right to understand the foundational agreements, construction plans, and project timelines. The mysterious circumstances surrounding the project have left many questioning and concerned, prompting a call for greater accountability and disclosure as the future of this monumental investment hangs in the balance.
What is the current status of the Larnaca Port project and why is it shrouded in secrecy?
The Larnaca Port and marina project, worth €1.2 billion, faces delays and a lack of transparency. Despite its grand vision, details on the contract and progress are withheld from the public and officials. Stakeholders express concerns over secrecy and the project’s uncertain timeline. Demands for accountability and clarity are growing as the project’s future remains uncertain.
What are the potential benefits of the Larnaca Port project?
The €1.2 billion Larnaca Port project is expected to bring significant economic development to the region through the construction of villas, commercial centers, universities, hotels, and apartment blocks. The project aims to redefine Larnaca’s landscape and enhance its economic prospects.
How has international involvement impacted the Larnaca Port project?
Global real estate giant Aroundtown SA, led by Israeli tycoon Yakir Gabay, has acquired an 80 percent stake in the project. This involvement has raised the profile of the project and brought increased scrutiny. Aroundtown SA’s participation adds to their extensive investment portfolio in Cyprus, including a major project in Limassol.
How are stakeholders and officials responding to the lack of transparency surrounding the Larnaca Port project?
Stakeholders, including local MPs and the President of the Larnaca Chamber of Commerce, have been demanding greater transparency and accountability regarding the Larnaca Port project. Discussions at the House transport committee and efforts to access the project agreement are underway to shed light on the causes of delays and the overall framework of the project.
