Cyprus terminates Larnaca port contract and receives EOIs for Limassol port privatization

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Cyprus terminates Larnaca port contract and receives EOIs for Limassol port privatization

The Government of the Republic of Cyprus has received expression of interest (EOIs) for Limassol Port privatization and has terminated Larnaca port contract.

More than 70 firms have so far expressed an interest to bid for Limassol Port privatization. The port has become the principal seaport in Cyprus. It is the largest and busiest harbour on the island, capable of handling vessels up to 250m size for berthing in 14m of water.

The overall port area is estimated to be 1,5 million m² and currently services 100% of the container traffic, 40-50% of total cargo and 75% of the passenger traffic in Cyprus. Three long-term contracts are available for commercial operation of:

  • container facilities,
  • a multipurpose terminal and
  • marine services.

Contracts shall be granted to three operators or a single consortium for all three.

The future development of part of the site to accommodate companies dealing with hydrocarbon exploration and storage is one of the future development projects which could be added to the port.

For the Larnaca port contract, the government has ended negotiations with the Zenon consortium. According to the government the consortium has failed to meet the commitments and obligations it had undertaken. It has decided not to extend the validity period of the tender that expired on June 15, 2015.

Zenon, which is composed of the Paraskevaides Group, Iacovou Bros, Petrolina and Vouros, signed an agreement to modernise the port worth about €700 million (US$780 million). Local banks set to provide project financing pulled back following the 2013 financial crisis.

The goverment has plans to take immediate action towards implementing the decision to modernise the Larnaca port and marina. Once operational, the new facilities would be able to accommodate large cruise ships and have the potential to serve commercial vessels. The project would also involves the development of parks, restaurants, recreation space, shops and other public areas.

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