A proposal by Prosperity Group CY to resume the unified development of Larnaca port and marina has raised questions and surprise, as the company seeks to take over the project it previously failed to deliver.
The firm, which holds a 20 per cent stake in Kition Ocean Holdings alongside majority shareholder Arroundtown’s 80 per cent, submitted its proposal to the Ministry of Transport in August. The proposal is currently under legal review.
The development emerged through an InBusinessNews article citing Prosperity Group CY sources.
The company expressed interest through the e-Consultation platform during an informal process for potential investors, seeking to revive the concession agreement with identical terms to the original contract.
Prosperity Group CY has indicated its readiness to acquire a significant portion or all of Arroundtown’s shares in Kition, which would make it solely responsible for the project.
The company says it would pay the €4.2 million guarantee that the former contractor refused to provide, leading to the state’s termination of the contract in May.
According to the report, Kition, which failed to complete any major port or marina works during its two-year management period, has demanded €37,707,696 as termination payment, claiming the contract termination was illegal. Sources indicate the state does not recognise this claim.
Sources familiar with the contract termination told philenews that the proposal raises concerns about how the €1.2 billion investment would be secured and implemented, and who would be accountable for another potential failure.
They questioned why these proposed measures were not taken before the contract’s termination, which was foreseeable months in advance.
Whilst the government unofficially considers the Kition chapter closed, the proposal remains under consideration.
Larnaca Mayor Andreas Vyras acknowledged this during Tuesday’s municipal meeting at the Municipal Theatre, noting that the Law Office is examining the matter.
“We must determine whether this proposal can be implemented. The government needs to verify the availability of capital. As a city, we cannot comment at present, but if this option is on the table, we will examine it”, Vyras said.
The Transport Minister told the newspaper that they await the Law Office’s opinion before making any official statement.
Meanwhile, discussions have begun with Greece’s TAIPED regarding the infrastructure’s future, with the Law Office appointing a lawyer and the Transport Ministry’s director-general initiating consultations.
Regarding marina developments, Vyras announced that dredging works would commence first, followed by an architectural competition for the Nautical Club building and landscaping by June, with the total cost expected to exceed €30 million.
Discussions are ongoing between the Transport Ministry and CMMI excellence centre regarding temporary marina management.
