With only days left before the Tenders Review Authority issues its decision as to who will be the winner of the tender for the development and expansion of Larnaca marina and port, it has emerged that the whole process could be declared null and void because of rampant irregularities allegedly committed by state officials involved in evaluating the bids.
Demes Karapatakis told the Financial Mirror in an exclusive interview that the disqualification of the DJ Karapatakis Consortium is the “biggest scandal in Cyprus, since not only the state will lose millions of euros in concessions, but there were rampant violations and irregularities that may lead to a criminal investigation.”
DJK Karapatakis had put the price tag on its planned construction of Larnaca port and marina works at EUR 300 mln while its promised concessions to the state for the next 35 years amounted to a whopping EUR 536 mln.
The Zenon Consortium, which won the initial round plans to spend EUR 54 mln on the construction of the port and marina promising concessions of EUR 135 mln to the state for 33 years.
Vouros Consortium, the front-runner has earmarked that its construction works for port and marina would cost EUR 202 mln and its concessions to the state over 33 years would amount to EUR 333 mln.
Legal battle
Karapatakis told the Financial Mirror in an exclusive interview that it is obvious that the DJK Karapatakis bid is by far more superior than the others. He also promised to fight by all available legal means the way the Tenders Authority disqualified DJK on the argument that it could not find the original letter of bank guarantee for EUR 1.5 mln (which all bidders had to post) in its file.
This is also against the recommendation by the British consultants advising the government that the dispute over the guarantee is not a fair reason to disqualify the DJK Karapatakis bid.
Karapatakis says his consortium has filed a recourse to the Supreme Court seeking to overturn the unjust way with which the DJK Karapatakis bid was disqualified. In addition he has requested the immediate cancellation of the tender process in view of the violation and in contravention of another provision of the tender, which stipulates that “bids shall remain valid for 270 days after the deadline set for their submission.”
Karapatakis says the 270 days lapsed a year ago.
Full report in Feb 25, 2009 issue of Financial Mirror
