Developer of Larnaca port sues government in court

The company that is directing the effort to restore the port and marina in Larnaca, Kition Ocean Holdings, has initiated legal proceedings against the government. As disclosed on Tuesday, the main issues in the case are purported delays and breaches of contract.

CEO Oliver Corlette criticised the government's unwillingness to hold talks about the discrepancy in financial guarantees. This promise, one of three for €10 million, apparently needed to be recalculated, but the government rejected the proposal. Corlette acknowledged the company's choice of asking for court intervention after several unsuccessful attempts to resolve the situation.

"We've attempted dialogue on numerous occasions, but they've been unwilling to address the calculation discrepancy, despite its potential for swift resolution. Last week, we petitioned the Cyprus courts to compel the government to honor the agreement," Corlette disclosed, emphasizing adherence to legal processes and abstaining from further comment.

Moreover, Corlette alleged government intimidation tactics, including threats to terminate the contract and restrictions on public statements without state approval.

"We put the success of the project first. We've completed the drawings, obtained the required licences, and are prepared to move forward. Regrettably, governmental noncompliance remains the sole impediment," Corlette affirmed.

Plans for the project, including capacity expansions and collaborations with international and local design firms, are apparently ready for implementation pending resolution of the dispute.

Transport Minister Alexis Vafeades previously attributed project delays to the company, while conflicting accounts from the Larnaca Chamber of Commerce cited governmental intransigence.

Vafeades clarified that discussions hinge on the company's compliance with contractual obligations, particularly concerning guarantee letters.

"We're aware of the company's proposed changes but insist on contractual integrity," said Vafeades.

Vafeades emphasised legal constraints and parliamentary access to pertinent information upon request in relation to confidentiality issues.

Awaiting a conclusion, parties watch the legal drama develop, considering the consequences for Larnaca's port and maritime infrastructure.