BOT contract for Dhekelia desalination plant

The government is planning to purchase the 8 year-old desalination plant at Dhekelia, ahead of the expiry of the contract with owners Karamontani in 2008, with a view to offering a BOT contract to refurbish the plant.

The government has already put out a tender to find a new BOT contractor to refurbish the plant over a 20-year period.

The deadline for the submission of tenders is May 9.

Official sources told the Financial Mirror that the decision to offer a new contract was prompted by external developments, namely that Dupont, the previous supplier of membranes for the plant, was closing down this arm of the business.

This was therefore a good opportunity to refurbish the plant, because good resevoir capacity following heavy rains in 2004 meant that Cyprus could survive with reduced operation at the plant.

The plan is to transfer the contract on October 1.

Fiona Mullen