Cyprus scraps $1.2 billion port concession, claiming contract breach

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Cyprus has scrapped a 1.2 billion euro concession agreement for the development of Larnaca port, claiming on Monday the operator awarded the project in 2020 was in breach of contract.

Operator Kition Ocean Holdings, which held a long-term lease to develop and operate both a yachting marina and a commercial port in the southern port town, did not immediately respond to a request for comment.

Larnaca is the staging post of a maritime shuttle of international aid into Gaza. The issue would not affect activity at the port, government officials said.

The consortium had failed to renew a letter of guarantee for the project which legal authorities considered a contractual breach, Transport Minister Alexis Vafeades said.

“This effectively activates a process where the port and the marina…are reverting to the administration of the state,” Vafeades said.

Source: Reuters