Cyprus has reached an agreement with Israeli investors for the long-awaited €1.2 bln redevelopment of the Larnaca port and marina.
Transport Minister Yiannis Karousos announced on Thursday that the government has agreed with the consortium which is to take on the project after protracted negotiations.
Tender negotiations between the two sides have been ongoing since late 2018.
According to Karousos the contract with KITION OCEAN Holding, a Cypriot-Israeli consortium with UK interests, is expected to be signed within the next 10 days.
The project regards the restructuring of the marina for 600 berths, the port and surrounding land development over an area of 220,000 sqm which is expected to see the consortium invest around €1.2 bln in the project.
Plans include the development of the marina with the latest technological infrastructure, turning Larnaca 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, streets and parks.
The project is expected to be completed over a period of 10 to 15 years.
Speaking to reporters after a meeting with Larnaca district mayors, Karousos said that this was a historic development for the town and district of Larnaca, as well as for Cyprus in general.
“I am in the happy position to announce that negotiations for the development of the port and marina of Larnaca ended with success last night. It is an investment of €1 bln with multiple benefits for Larnaca and the country’s economy,” Karousos said.
Larnaca Mayor Andreas Vyras said the deal was a “pleasant surprise” as the town has been waiting for decades to see its marina upgraded.
“This is a new era for Larnaca. The development will boost the town’s economy and create a great number of jobs”.
Deputy government spokesperson Panayiotis Sentonas said: “It is a project of great added value for our country as it is expected to increase economic activity in both Larnaca and elsewhere. It is estimated the project will contribute some €126 mln to the GDP annually”.