Prosperity Group CY, which holds a 20% stake in Kition Ocean Holdings, is renewing efforts to resume the €1.2 billion Larnaca port and marina development project following the termination of the original contract earlier this year.
At a press conference in Larnaca, company CEO Panos Alexandrou expressed frustration over delays in considering their proposal, which was first submitted in August.
“There is a negative attitude towards examining our proposal. We are asking to sit at the negotiating table and, if feasible, proceed with implementing the project,” Alexandrou stated.
The executive emphasised that the company has secured capital to complete the first phase of the project, estimated at €150 million.
According to Alexandrou, legal advisors have confirmed that the project could be brought back on track under EU legislation and English law procedures.
Prosperity Group maintains that it can continue the unified redevelopment of the port and marina from where it was interrupted, with potential completion of the first phase by 2029.
This initial stage would include road network expansion, construction of a passenger terminal and offices at the port, development of a yacht club building, and increasing the marina’s capacity to accommodate 650 vessels.
“It is unfortunate and unfair for Larnaca and Cyprus not to complete this project,” Alexandrou remarked, adding that resuming work would “avoid delays and additional costs for conducting studies” while creating “thousands of jobs.”
The CEO directed blame toward the government for terminating Kition’s contract on May 27, 2024, asserting that “the company did everything to start the project until the moment of termination” and “never intended to abandon it”.
He claimed that during its two-year management of the port and marina, Kition executed works worth €37 million, including office space upgrades, crane and equipment purchases, and renovations to the marina’s preserved pier and restaurant.
The contract termination followed Kition Ocean Holdings’ refusal to renew a guarantee for the port, which, according to the Law Office, violated an essential term of the agreement.
When questioned by philenews about why the company did not pay the guarantee if it intended to execute the project, Alexandrou described the situation as a “misunderstanding,” adding that “dispute resolution procedures should have been followed as stipulated in the contract”.
He confirmed, without providing details, that the company would seek compensation from the state for terminating the agreement.
The Ministry of Transport has requested an opinion on Prosperity Group CY’s proposal from the Law Office, which philenews understands is now ready.
Official announcements from the government are expected in the coming days.
