In a written statement, the government’s press and information office said, “despite significant efforts made by the government to arrive at a deal for the projects of the Larnaca port and marina, the Zenon consortium failed to meet the commitments and obligations it had undertaken”.

“Therefore, negotiations have been ended with the government’s decision not to extend the validity period of the tender that expired on June 15, 2015,” the statement said.

“The Council of Ministers had approved several extensions since negotiations started in July 2010 in an effort to arrive at a deal, with no result.”

The statement added that the government’s decision to turn Larnaca port into the island’s major passenger port remains in force, and the decision to not turn it into an industrial port also stands.

“Taking into account Larnaca’s best interests, the government will take immediate action towards implementing the decision to modernise the Larnaca port and marina,” the statement said.
Zenon – consisting of the Paraskevaides Group, Iacovou Bros, Petrolina and Vouros – signed an agreement with the government for the development of the Larnaca port and marina worth a reported €700 million.

Local banks set to bankroll the project pulled back following the 2013 financial crisis and the consortium began seeking financing elsewhere for the marina component of the project. Once completed, the new port would be able to accommodate large cruise ships and have the potential to serve commercial vessels. The project would feature parks, restaurants, recreation space, shops and other public areas.

Complicating matters, two energy companies – Noble Energy and ENI – have been granted permits to set up shore-base operations within the port, situated next to the marina, which happens to be an integral component of the grandiose tourism development plans.

Source: Cyprus Mail