The redevelopment of Larnaca Port and Marina amounting to €1.2 billion is on track as the final touches are added to the blueprints before the Cypriot-Israeli consortium takes over on April 1, 2022.
Founded in Cyprus in 2018, Kition Ocean Holdings Ltd (a consortium, composing of investors Eldeman Holding BV and Alexandrou Corporate Services Ltd) was the winner of the government’s international public tender procurement process in 2020 and is currently tasked with completing the redevelopment project, the island’s largest infrastructure project of its kind.
Transport Minister Yiannis Karousos visited Larnaca Port on Thursday (Sept. 9) and was informed on the progress of the Master Plan, Cyprus News Agency reported. The Master Plan will also be presented to various departments before the port and the marina is handed over officially to the consortium in April.
“Several estimates have been made; it is a project that will take about 12-13 years to build. It is estimated that the project will generate for the Republic revenues of around €12 billion in the long run. There will be about 4,000 new jobs created, calculating those directly tied to our company and those created by companies such as restaurants that will open outlets at the commercial part of the project” Financial Mirror quoted Panos Alexandrou, CEO of Kition Ocean Holdings as saying.
Based on the Finance Ministry’s study the investment will lead to a €120 million annual increase in Cyprus’ GDP.
The project provides for port infrastructure, a marina, redevelopment of the land, a road network, green areas, parks and pedestrian areas as well as residential units and catering and recreation establishments over a period of 10 to 15 years.
The upgraded Larnaca port will accommodate ships up to 450 metres in length, such as luxury cruise ships, energy exploration vessels, military, and other merchant ships. The new marina will accommodate 650 boats from 5 to 150 metres long and offer facilities such as boat repair and services. It will also accommodate mega yachts up to 150m.
The new marina will have catering venues, recreation and green areas, children’s play areas, shops, hotels, luxury villas and an educational and medical centre that can host students to study and train in hotel management, medical studies and marine studies.
Under the proposed venture, it is estimated that the state will receive more than €19.6 bln during the lifetime of the project which includes the 125-year lease on the real estate.
The BOT project will see the government receiving a fixed rent and a percentage of the revenue generated through a concession agreement with the port/marina operated on a 40-year lease and the real estate is acquired on a 125-year lease.
After 40 years the port and marina can be handed back to the government who will then decide on their management.