A huge €1.5 bln development project that will change the face of Larnaca port and its marina is expected to get the go-ahead on January 16.
Government officials are mulling over a billion-euro plus bid to develop Larnaca marina and build a green port, which also includes mixed real estate development.
The proposal regards the restructuring of the marina into a 600-berth multi-purpose facility, expanding the port and surrounding land development projects over an area of 220,000 m² which is expected to see the consortium invest around EUR 1.5 bln in the project.
It is understood the consortium bidding for the build-operate-transfer project involve UK-based Prosperity Group, a company with an extensive experience in international large-scale mixed-use developments and Israel’s REM International which is part of the group that owns and manages the port and marina of Eilat in Israel.
Initial investors AMPA Ltd and Israel Shipyards Ltd pulled out of the final bid.
This venture includes Cypriot companies forming a larger consortium under the name Kition Ocean Holding, which will be the legal entity undertaking the project if the proposal is accepted by the government.
Apart from the development of the marina with the latest technological infrastructure and plans to turn the port it into one capable of serving large vessels, with the expansion of piers and docks and the construction of a modern passenger terminal, the consortium is also planning residential and commercial development with innovative architecture, cycle lanes and parks.
Inside sources told the Financial Mirror the state and Kition Ocean could be in a position to sign the final agreement in early 2019 as a decision on the tender is expected on January 16.
Knowledgeable sources told the Finance Mirror that the complete project will span over 10 years as it includes building two hotels (lifestyle/business), nine office buildings (mixed use) of up to 15 floors each and six luxury apartment blocks up to 13 floors each.
“This project will be the backbone of Larnaca, it will bring jobs, trade and business, it’s Larnaca’s turn to exceed expectations, revamp the economy and put Cyprus on a different kind of map,” a source told the Financial Mirror.
“There will be large residential and commercial real estate development to support the marina and port, so people will be living, working and setting up business in the area, this will be a self-maintaining project,” the source added.
Larnaca’s rundown marina will get a totally new facelift with modern amenities and facilities including a dry repair dock and a place where yachts can actually be built.
“We are talking about industry, this is what Cyprus needs, it has zero industry and it needs to grow the economy,” said the informed source.
“We can’t simply rely on tourism, we need to bring real business that brings investment, that brings expertise and start-ups.”
New Life
Other sources close to the deal also pointed out that Larnaca port needs a new lease of life after being ignored for so long.
“Larnaca port needs a lot of work because it’s been neglected, it doesn’t have lights, there’s no passenger terminal, it needs new cranes, it could also do with a tax-free shopping centre as a connecting point to the port,” said a source close to the project.
“The main idea is to help Larnaca and offer something we don’t have – new blood, new money…some three million people arrive at the airport each year, but nobody stays.”
Everyone involved in the development is focused on making Larnaca a place that people want to visit and do business in.
“We need to give reasons for people to come, people need to have things to do for example we have 8,000 who come for diving tourism, why not make it 80,000?” said a source.
“At the moment you can’t even enter the marina or go there for a coffee…there are so many things that need to be done,” the source added.
People close to the port deal say the government has done what it can to smooth over obstacles because “Larnaca wants to work, but they don’t how to go about it”.
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 on 125 years.
Local authorities, businesses and other stakeholders are keen to see the project take off as Larnaca will benefit significantly from the development.
The venture will upgrade Larnaca to the standard other towns have reached over recent years, and not be considered the poor neighbour anymore.
Plans also foresee the construction of luxury homes along the Larnaca marina which will more than double in size.
