Preparations are underway to re-tender the development of Larnaca Port after Cyprus terminated a $1.3 billion concession agreement.
Transport Minister Alexis Vafeades announced that Qatar, along with other investors, had expressed interest in the port.
The re-tendering process might be delayed by potential legal actions from the previous operator, Kition Ocean Holdings.
Kition Ocean Holdings, a joint venture between Israeli investor Eldeman Holdings BV and Cypriot firm Alexandrou Corporate Services Ltd, held a long-term concession for the operation and development of Larnaca Port and Marina. The project, initially set for completion by 2025, has seen little progress.
The Cypriot government terminated the concession, citing Kition’s failure to renew a letter of guarantee. Kition is exploring legal options, accusing the government of undermining the rule of law. The government claims it sent four warning letters, yet the guarantee was not received despite Kition’s assurances.
The state has taken over port operations, rehiring 70 Kition workers following meetings with trade unions. President Nikos Christodoulides stated that the expansion project would continue without delay, and the search for a capable company to handle development and operations is ongoing.
Kition was awarded the concession in 2020 and received multiple extensions due to the pandemic. An agreement in mid-April lowered the guarantee amount from €10 million to €4.2 million, with construction set to resume upon receipt of the guarantee.
The development plan includes expanding Larnaca, the second-largest port in Cyprus, with 10 piers, a state-of-the-art passenger building, and new environmentally friendly equipment. The existing infrastructure, including piers, internal road networks, and storage areas, was also slated for upgrades.
Larnaca Port covers approximately 44.5 hectares on the southern coast and handles a variety of cargo, including bulk goods, timber, iron, fertilizers, cars, pipes, and petroleum.
The port’s development has faced challenges before. A project agreed upon in 2010 with the Zenon Consortium fell through in 2015 after failing to secure funding despite multiple deadline extensions.
