Larnaca port, marina rebuild gets final nod

Larnaca port, marina rebuild gets final nod

The consortium awarded the project is Kition Ocean Holdings, a  Cypriot-Israeli consortium,

 composing of investors Eldeman Holding BV  and Alexandrou Corporate Services Ltd.

Tender negotiations between the two sides have been ongoing since late 2018 

when the consortium’s bid was the only one left on the table after a number of bidders pulled out.

Cyprus Transport Ministry said the letter essentially marks the end  of the tender process and

 the whole project can now move on to the next  stage with the signing of contracts between the two sides.

Once the agreement is signed, a 12-month transition period will  follow during which the investor will take over the project in its  entirety.

This involves the restructuring of the marina for at least 650  berths,

 the port and surrounding land development over an area of  220,000 sqm spanning to a total of 510,000 sqm.

The development, which also involves real estate, 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, docks and the  construction of a modern passenger terminal.

As part of the marina development, there will be a yacht club with a  retail park, plus hotels, a private island and residential properties.

Port works will also include the expansion and management of the  port, improving current infrastructure such as the interior road  

network, storage space as well as creating a new terminal for cruise  ships and utilising the port for cargo management.

The area between the marina and the port will see infrastructure  works carried out, including 

a road network, green areas, parks, open  spaces for events, as well as education and medical centre.

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.

According to the Transport Ministry, the project’s added benefits to  the economy should surpass €120 mln annually once fully developed.

Under the proposed venture, it is estimated that the state will  receive more than €19.6 bln during the lifetime 

of the project which  includes the 125-year lease on the real estate.

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 is  acquired on a 125-year lease.

After 40 years the port and marina can be handed back to the government who will then decide on their management.

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.