Filenews 18 June 2024 - by Natasha Onisiforou
Three weeks after the government's tumultuous divorce from Kition Ocean Holdings and the assumption of port and marina management, the two outstanding issues related to the smooth operation of the two important infrastructures are closing.
The first concerns the employees of the former contractor, who will be officially hired by the Development Agency of Larnaka and Famagusta, and the second concerns the ownership of the equipment in a port and marina, which, according to the Minister of Transport, passes to the state.
Speaking to "F", Alexis Vafeadis said that the issue with the workers will probably be closed today, while by the end of June the equipment of the port and marina will have to be delivered to the state. The first meeting with representatives of Kition Ocean Holdings took place last week and a list of assets returned to the state is expected to be delivered by the company. "We are consulting with Kition to pass the equipment to the state, since this is what the contract provides. In case of termination, all assets return to the state. They will hand us a list and we will appoint committees to receive them," the transport minister noted, indicating that the contract gives 30 days for this process, which must be completed by June 27. "We are trying and pushing for the transfer to take place sooner," he added, stressing that it is now a matter of time before the operation of Larnaka port is normalized.
It is noted that mainly due to the absence of large cranes, as well as scales, it was not possible to return to full speed the port of Larnaka, resulting in slow ship service. Based on the provisions of the contract, according to Mr. Vafeadis, two large cranes in the port, as well as the scales, will have to be returned to the state. The subject of discussion, meanwhile, is a third crane, the status of which has not been clarified. In addition, the state will acquire, among other things, two vessels, as well as the software systems used by the company.
The Larnaka marina, moreover, operates without major problems and this week, as the Minister of Transport mentioned, the issue that arose with the cleaning crew will also be resolved. "There were some complaints about cleanliness because the crew came twice a week and we arranged for four to come. We gave them a temporary contract to continue, within the limits allowed by law, until we were able to launch tenders."
Kition Ocean Holdings, meanwhile, is keeping its cards closed regarding the claim for damages, something for which they are preparing at the Ministry of Transportation in cooperation with the Legal Service. The estimate is that the company will seek compensation both for the termination of the contract and for equipment to be delivered to the state. So far, however, she has not made her allegations known and it is unknown whether she will go to court, as she had previously announced. A few days ago, however, as Mr. Vafeadis said, Kition withdrew an appeal that had been filed with the Nicosia District Court, following the dispute that arose over the amount of bail it refused to renew. Thus, the unilateral decree that had secured and prohibited the state from collecting another guarantee that was in force is no longer valid. It is recalled that in order for the contract with the state to be considered in force, the company had to have three guarantee agreements signed. For the one that was not included in the decree, amounting to €3.2 million, instructions were given to liquidate it immediately after the termination of the contract on May 27. For the other, which was released after the withdrawal of the company's appeal, according to Mr. Vafeadis, instructions were given to the Legal Service to handle the matter, because some legal issues arise. The intention, however, is to liquidate this guarantee as well.
They are preparing a costed proposal in Larnaca
However, there are also developments in the other major aspect of the issue, which concerns the future of the development of the port and marina of Larnaka and the instructions of the President of the Republic, in order to find a solution to immediately put the project on track.
The Minister of Transport intends to deliver to President Christodoulides in a few days, as he told us, the proposals that are on the table for the project. "I am preparing a note which I will submit to the President and the Council of Ministers and then a meeting with the local community will be arranged," the minister noted.
It is recalled that three proposals are on the table: the integrated development decided in 2005, the separation of the project and the finding of two separate investors, as well as the expressed intention of the Port Authority to invest in the two infrastructures with its own resources.
The implementation of the first two proposals will take years, since specific procedures must be followed for the re-announcement of the competition. It is mainly for this reason that Larnaka authorities, at least at this stage, prefer the proposal of the Port Authority, which can be implemented sooner. This is on condition that the state undertakes the execution of the road connecting Finikoudes with the port and has been estimated at approximately €30 million, as well as the construction of two flood protection pumping stations, which were incorporated in the investment.
The city's formal proposal, however, will be submitted to the state in the coming weeks and will be based on a financial study conducted by technocrats. "It will take us about two months for the technocrats to complete what we assigned them, which will include costed scenarios. Then we will submit the proposal to the state", the president of the LCCI, Dr. Nakis Antoniou, told our newspaper. He also noted that Larnaka "will ask for mild development, which will maintain its picturesqueness", indicating that the marina should be accessible to the whole world and not only "to big wallets".
Meanwhile, on Friday afternoon, the Larnaka City and District Development Committee will meet again, with the aim of appointing a working group that will have direct meetings with the state. The desire of the city's stakeholders, as expressed by the mayor, Andreas Vyras, is this time for Larnaka to have a role and a say in the proposal that will be chosen, in order to be able to control the process.
