35-year B-O-T to invest € 1bln
The project for the redevelopment of the marina and port of Larnaca, estimated to cost about 1 bln euros, will officially get underway next week, with Communications and Works Minister Nicos Nicolaides saying that the commencement of the negotiations will begin with the successful bidder, A. Vouros Consortium.
The go-ahead came after the Tenders Review Board was informed that the Larnaca Zenon Joint Venture had withdrawn its objection and was dropping its legal case against the Republic. Zenon was initially selected for the project last year but was later turned down after an appeal and the Vouros bidders won in May.
The winning consortium comprises A. Vouros Investments Ltd., Singapore Cruise Centre Pte Ltd, DP Architects Pte Ltd., Ioannou & Paraskevaides Ltd., J&P/Avax S.A, Ioannou & Paraskevaides (Overseas), Ariadne Australia Ltd. and Cybarco Plc.
The private-public partnership foresees a build-operate-transfer (BOT) project that will be managed by the consortium for 35 years following an investment of 1 bln euros in port and marina facilities, as well as a waterfront development including hotels, residential units and leisure projects.
“After this development, the project manager will start immediate negotiations with the successful bidder on Tuesday, so that we can proceed with this important project as soon as possible,” said the minister, adding that as this was a privately financed project with no funds from the state, “this should be considered as a significant development for our economy, especially for the construction sector.”
“At last, we are opening the way for one of the biggest infrastructure projects in Cyprus,” Nicolaides said, explaining that this will be a great boost to Larnaca and to Cyprus in general.
After its conclusion, the marina will have a capacity for 1,000 boats, while the port will become the main passenger terminal in Cyprus.
Throughout the duration of the BOT development, the state will receive 7% of all revenues, which is estimated at over 100 mln euros during the 35 years.
Louis was the biggest shareholder in Zenon Consortium, controlling 22% of the bid. Costa Cruises was also a partner with a 10% stake. Both cruise companies, already partnered in a passenger terminal in Marseilles, hoped to develop Larnaca into an eastern Mediterranean cruise hub. The others included French construction giant Bouyges Batiment International with a 17.5% stake and local builders Iacovou Brothers (17.5%), both partners in the Hermes Airports consortium building and operating the new airports in Larnaca and Paphos. Other Zenon partners included Amsterdam Logistics Group B.V. and Lievense Consulting Engineers (operators of Amsterdam port, 2%), Marinaman (8,5%), local fuels company Petrolina Holdings Public (17,5%) and the General Construction Company (5%).
The third bidder for the Larnaca port and marina redevelopment was the DJ Karapatakis & Sons consortium including Camper & Nicholsons Marinas, Wimberly Allison Tong & Goo Inc, ERA, Spanopoulos Group of Companies, Parsons International, Odell International, G.A.P. Vassilopoulos Public, SFS Group Public Co., A. Panayides Contracting Public, Sigan Management and Viset Malta Plc.
