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Cyprus’ government scraps 1.2 billion euro marina project

Cyprus’ government has scrapped a 1.3 billion dollar (1.2 billion euro) project for the development of Larnaca Port and a marina, citing a breach of contract by the developer.

The port, the second largest in Cyprus and located in the southeast part of the island, attracted international attention in recent months as it has become a hub for the transfer of international aid to Gaza.

The government said the issue will not affect the transfer of aid or other commercial activities, as it has made provision for the effective running of the port.

The project was awarded in 2020 to Kition Ocean Holdings for the development and operation of Larnaca Port and a yachting marina.

A government statement said the developer had failed to renew a letter of guarantee for the project, saying the renewal was a contractual obligation.

The government was left with no other choice after Kition Ocean Holdings repeatedly refused to pay its financial guarantee, Transport Minister Alexis Vafeades told CyBC state television.

The minister said that as of now Larnaca port and marina will fall under the wing of the state, which is examining alternative ways of proceeding with their development.

Kition said they were “surprised” by what they described as “disregard for a court process” on the part of the government. ■

Famagusta Gazette