Larnaca, Cyprus. Transport Minister Alexis Vafeades defended the government’s decision to split the redevelopment of Larnaca’s port and marina into two projects, saying they will be executed separately but in parallel. He said the state will proceed with implementation.
Rationale for separating the developments
Vafeades said that under initial plans to redevelop the port and marina as a single project, “one development would occur at the expense of the other”. He added that he has no concerns regarding the future of the project and stressed that “the state will proceed with its implementation”.
Government decision and termination of previous contract
The government announced in November 2024 that the development of Larnaca’s port and marina would be split into two projects. The move followed the government’s decision in May 2024 to terminate its agreement with Kition Ocean Holdings on a combined redevelopment project estimated to cost €1.2 billion.
The contract was terminated after the government accused Kition of refusing to pay a required financial guarantee for the project’s operation and maintenance. The government had insisted the guarantee total €8 million, while Kition believed the agreed figure was €4.2 million.
HRADF role in next steps
In January this year, the government put the Hellenic Republic Asset Development Fund (HRADF) in charge of the port and marina development projects, with HRADF set to play a key role in deciding next steps for both sites.
HRADF operates several ports in Greece, including Alexandroupoli, Lavrio and Volos, Kavala’s commercial Philip II port, and the Corfu megayacht marina.
Comments follow dispute over protest plans
Vafeades’ comments came after he said last week he was confused by Larnaca mayor Andreas Vyras’ decision to stage a protest over perceived delays in progress on the projects.
“I had already agreed with Mr Vyras [that] the matter would follow a specific implementation path and that at the end of the month, they would present the results of the study concerning land development,” he said.
What do you think should be the priority in the redevelopment of Larnaca’s port and marina?
