Legal hurdle threatens Larnaca marina redevelopment

Larnaca interest groups as well as MPs were stunned to hear on Thursday that management of the marina cannot be directly assigned to the Ports Authority, throwing a spanner into redevelopment plans. Up until now, management of the town’s port and marina, for the purposes of redevelopment, had been understood to be under the Ports Authority (CPA). But in parliament, it emerged that management of the marina cannot legally be assigned directly to the CPA, as it is the property of the state. As such, said an official from the attorney-general’s office, the only option is to launch an open tender – in which the CPA could bid. By contrast, the port itself is the property of the CPA, and therefore the authority may continue managing it. Transport Minister Evi Tsolaki acknowledged the legal quagmire, but assured attendees of the government’s intention to proceed with the project overall. She recalled that in 2024 the government terminated the €1.2 billion port and marina concession agreement with Kition Ocean Holdings due to the consortium’s failure to renew a mandatory financial letter of guarantee. A representative of the CPA noted that the road map for the redevelopment concerns both the port and the marina. Nevertheless, he argued, completing one of the components does not depend on completing the other – suggesting that the planned works for the port could go ahead in the meantime. Weighing in, the head of the Larnaca district local government organisation (EOA) called for legal clarity on the status of the project. Angelos Hadjicharalambous said that during a prior meeting with President Nikos Christodoulides and the former transport minister, the government had given the impression it was committed to the project. Likewise, the deputy mayor of Larnaca complained about the legal confusion, which would create more delays for a project that is hugely significant for the coastal city. Nikos Gregoriou, a representative of the PEO trade union, said the port must remain under state management, warning against any thoughts at privatisation. Opposition MPs also asked why the government had not come clean earlier on the legal aspect. In July this year, the CPA had unveiled a roadmap for a €415 million redevelopment programme for the port and marina envisaging phased investment over the next two decades. The overall programme extended to 2045, with the master plan expected to be completed by 2029. The largest component concerns the port, where investment of around €205 million is planned through to 2045. A further €190 million has been allocated for redevelopment of the marina land and adjacent areas between 2027 and 2036. The roadmap envisaged hotels, restaurants, office space, recreation facilities and a conference centre, with most commercial projects expected to be undertaken by private investors. The CPA would undertake responsibility for infrastructure, maintenance and strategic management, while commercial and tourism developments would be financed largely through private investment under the overall planning framework. According to the roadmap, the strategic objective is to bolster Larnaca’s role in shipping while reconnecting the waterfront through continuous public access between the marina and port. That roadmap now appears to be in limbo.