Lawmakers were skeptical on Monday when the Cyprus Ports Authority (CPA) requested an extra €8.4 million to run the port in Larnaca after the contract with a private company – Kition Ocean Holdings – was terminated.
The CPA is asking for €8.4 million as a supplementary budget, after it took over management of the port and marina in Larnaca.
MPs heard the CPA would run the port as “a temporary arrangement” until the future of the project to develop the port and marine becomes clear. Legislators sought, but did not get, a specific timeline on that.
Anthimos Christodoulides, director of the CPA, said the organisation temporarily took over the running of the port on the same day that the contract with Kition was terminated. The transition was smooth, he added.
However, due to the commercialisation of the port, the CPA lacks the specialised personnel or the necessary equipment suitable to the task – so it needs to farm out to the private sector.
Echoing the views of her colleagues, Disy MP Savia Orfanidou said she was concerned that this temporary arrangement might become a permanent one.
“We are worried that this project [development of the port and marina] might get put off indefinitely.”
Likewise Akel’s Christos Christofides said they see no strategic planning from the government regarding the stalled development project.
Seeking to allay some of these concerns, Christodoulides of the CPA stated that they expect to make revenues of around €8 million – roughly the same amount in extra funding as they are now asking parliament to approve.
A representative of the transport ministry noted that the former employees of Kition have since been transferred to the Larnaca Tourism Development Agency. The CPA now covers 80 per cent of the employees’ salaries, with the rest covered by the transport ministry.
The same rep said that an ad hoc committee has been set up in Larnaca consisting of local stakeholders. Their job is to make recommendations to the government on how to proceed with the development of the marina and port.
The government has promised to take a definitive decision on the matter by end of August.
A finance ministry official said the agreement struck with the Larnaca Tourism Development Agency provides for a transitional period until the end of August.
Back in May the government pulled the plug on the €1.2 billion development deal for the Larnaca port and marina. The administration at the time said it had no other choice, and accused the concession holders – Kition – of repeatedly failing to pay its financial guarantee.
