Government terminates Larnaca Marina project contract

The government has officially terminated the contract for the multibillion-dollar Larnaca port and marina project, citing breaches by Kition Ocean Holdings.

Transport Minister Alexis Vafeades announced the decision on Monday, following a legal opinion that confirmed the breach of contract by Kition Ocean Holdings. As a result, the government was compelled to cancel the agreement.

This termination means the project will now require a new tender process to move forward.

Minister Vafeades explained that Kition Ocean Holdings had been issued four written warnings and had assured President Nikos Christodoulides they would pay an outstanding guarantee amount. However, despite these assurances, the payment remains unpaid.

Following Kition's nonpayment of the necessary guarantee payment last month, Vafeades threatened to take legal action. “Even though they said they would, to this day the guarantee has not been paid,” Vafeades stated.

The government will ensure the port continues to operate without any disruption to services during this transition period.

Minister Vafeades will be in Larnaca on Friday to meet with the mayor and local communities to discuss the situation further.