**State Loses Over €5 Million as Mooring Areas Remain Unused**
The state of Cyprus has incurred a loss exceeding €5 million due to six pleasure boat mooring areas that have remained non-operational since being awarded to private companies in 2018. This alarming revelation was presented by the audit office to Members of Parliament (MPs) during a session on Thursday.
In 2018, the government granted approval for the development of these mooring areas, which are located in Peyia, Alaminos, Ha Potami, Pachyammos, and Softades. The companies involved were obligated to pay annual fees ranging from €75,000 to €262,000. However, they requested a suspension of these payments until they secured the necessary permits to build and operate the mooring facilities. As of now, eight years later, none of the designated sites have commenced operations, resulting in a complete absence of fee collection by the state.
The audit office attributed the lack of progress to bureaucratic delays in legislative changes and inadequate monitoring of the companies' compliance with their contractual obligations. The six sites, intended to accommodate up to 150 pleasure boats, are smaller than traditional marinas and were expected to contribute significantly to state revenue through the fees imposed.
In 2021, the legal service advised that the companies would not be required to pay fees until they obtained the necessary permits. Furthermore, it was indicated that the existing fee structure was unconstitutional, necessitating a change in the law. This assessment was reiterated when the audit office sought a review of the issue, confirming that the fee system was both “burdensome and unconstitutional.”
In light of these findings, the audit office has recommended legislative changes to implement a lower annual fee for companies while their sites remain reserved. This new fee structure would be based on the value of the area, aiming to incentivize companies to expedite the permit acquisition process and advance their projects. An amendment bill currently under consultation proposes an annual fee of €10,000 for each site until the required permits are obtained. However, the audit office expressed concerns that this amount does not accurately reflect the value of the areas and may not provide sufficient motivation for companies to move forward with their developments.
Deputy tourism ministry representative Olga Theocharous confirmed that none of the six mooring areas is currently operational. She noted that existing legislation does not empower the ministry to cancel the concessions or take action against the companies involved.
The situation has drawn criticism from various political figures. Akel MP Christos Christofides described the scenario as “another major looming scandal,” suggesting that some beneficiaries may have had privileged relationships with the Anastasiades government at the time the concessions were awarded. Diko MP and committee chairman Zacharias Koulias labeled the issue a “huge scandal that does not honour anyone in our country,” asserting that the concessions were granted under “cloudy and ambiguous terms.”
Disy MP Giorgos Pamborides criticized the state’s “inaction,” recalling that the need for legislative changes had been raised in 2023, with an amendment decided upon in 2024, and a bill completed last year that is now under consultation.
Akel leader Odysseas Michaelides pointed out that the six companies should have collectively paid approximately €800,000 annually, leading to the significant financial loss of over €5 million for the state. In response to the ongoing issues, the committee has requested cabinet minutes and additional documents from the deputy tourism ministry and the land registry, including information regarding land transfers related to the six sites.
As the situation develops, the audit office's recommendations for legislative reform and enhanced oversight may play a crucial role in addressing the inefficiencies and financial losses associated with these unused mooring areas. The government's response to these recommendations could determine the future of the mooring sites and the potential recovery of lost state revenue.