ALTHOUGH it has been 20 years since initial studies were prepared, not one of the five big marina projects in Cyprus has got underway. The Limassol marina seems to be the only one moving forward, but quite slowly.
The marinas are key in efforts to improve the island’s tourist product and attract high revenue-earning tourists. However, one year before the expiry of the ten-year Cyprus Tourism Organisation (CTO) strategic plan, construction work on any of them has yet to start.
On top of the bureaucratic delays, the financial crisis has lead to financing problems for would be buyers. StockWatch has spoken with the authorities regarding the status of the various projects.
According to CTO Chairman, Panos Egglezos, the plan for the marinas dates back to early 1990. “The first study was carried out in 1992 by a foreign expert. The expert pointed out the areas that could host the marinas. However, the gigantic bureaucratic procedures do not allow the enforcement of the projects“, he said.
Commerce Ministry General Manager, Efstathios Hamboullas, explained the problems faced by each of the projects. The Commerce Ministry is responsible for four of the projects, while the Transport Ministry is responsible for Larnaca.
Limassol
The Limassol marina, which is expected to cost around €300 million, is being undertaken by Lemesos Marina Ltd and will be constructed under the DBFO (Design-Build-Finance-Operate) method.
“The project is currently seeking to secure the necessary licenses, consents and approvals from all governmental departments. It is not expected to start before autumn as the application must be approved by a series of government departments, such as the Urban Planning, the Ports’ Authority, the Merchant Marine, the Public Works and the environmental authority, while an environmental study must be secured as well,” Mr. Hamboullas said.
According to the contract, the harbour works and the development of the land space must be executed simultaneously over a three year period.
Lemesos Marina Ltd, which has undertaken the project for 53 years, comprises of Cybarco of Lanitis Group, J&P-Avax SA, J&P Joannou & Paraskevaides Ltd, Cads Holdings Ltd, Francoudi & Stephanou, Athena SA and Limassol Marina Development Company Ltd.
The marina will be built near the old port and will have a capacity of around 1000 vessels. The 40,000m2 of land will be developed to include 2,200 villas and flats, 75 shops, parks, restaurants, cafes, as well as spaces to berth vessels in the gardens of the villas.
Paphos
The Paphos marina, which is expected to cost €300 million, is held up in the Supreme Court following appeals by the failed bidders.
Looking back over the course of the case, Mr. Hamboullas explained that although the bids received from the three bidders were evaluated in June and the preferred bidder (Pandora Investments, Cybarco, Francoudi & Stephanou, J&P-Avax, Cads and Athena SA) was selected, the two failed bidders appealed the decision to the Revisionary Authority. Last November the Authority ratified the appeal made by Poseidon Grand Marina of Paphos. The third company that bid for the project was Pafilia.
The case has been referred to the Supreme Court after the appeal of both companies, who are against each other. According to Mr. Hamboullas, after the latest developments it is difficult to predict when the case will close.
The project of 1,000 vessels will be constructed in Kissonerga and will also include land development.
Ayia Napa
The strange thing about the the Ayia Napa marina is that although the construction of the road network between Ayia Napa and Ayia Thecla (where the marina will be located) has started, the tender documents are still with the Attorney General.
The cost of land development and the marina of 600 vessels will reach €200 million. The development of the 30,000m2 of land included in the overall project will be undertaken by Caramondani Bros, Atlas Pantou, G&A Toumazis, Fama Marina and CCI of Famagusta for 53 years.
Paralimni
Paralimni is waiting for the final decision of the City Council after the request for the construction of an anchoring space instead of a marina, based on a special law that was approved a year and a half ago.
The cost of the project in Ayios Nicholaos is estimated at €100 million and will be able to host 260 vessels.
Larnaca
The Transport Ministry is responsibile for the construction of the Larnaca port and marina.
According to General Manager of the Ministry, Makis Constantinides, the case is still in the hands of the ad hoc committee after the Revisionary Authority’s decision to ratify the appeal made by A. Vouros Consortium following the Tenders Council’s decision to select Larnaca Zenon as the preferred bidder.
A. Vouros Investments Ltd comprises of Singapore Cruise Center Pte Ltd, DP Architects Pte Ltd, Ioannou & Paraskevaides Ltd, J&P – AVAX S.A, Ioannou & Paraskevaides (Overseas) Limited, Ariadne Australia Limited and Cybarco Plc.
Zenon comprises of Bouyques Batiment International (17,5%), Iacovou Brothers (17,5%), Amsterdam Logistics Group B.V. and Lievense Consulting Engineers (port of Amsterdam, 2%), Louis Public Company Ltd (22%), Costa Cruises (Italian subsidiary of the US Carvinal Cruises, 10%), Marinaman Ltd (8,5%), Petrolina (Holdings) Public Ltd (17,5%) and General Constructions Company (5%).
The project is expected to cost €200 million and will be of capacity of 1000 vessels. The 26,000m2 of land will be developed to include hotels, flats, parks, bicycle lanes, shops, restaurants and cafes. The strategic investor will undertake the project for 35 years, while the hire/purchase of the other constructions will be for 90 years.
