We have not given up and have kept the communication channel open
Kition Ocean Holdings (Kition) declares that it is fully ready to immediately start the construction of the important project in Larnaca, however, it claims that the relevant ministry has not still meet the consortium, to discuss the amount of the guarantee.
Communication from Kition Ocean Holdings in response to the Government's statements states: < /b>
Kition Ocean Holdings (Kition) is fully ready, once the work schedule is clarified, to immediately start the construction of the major project in Larnaca, having made available the necessary capital, having assembled a competent and experienced team, and established the required procedures. Kition can and is ready to submit the Operation and Maintenance (O&M) warranty as originally decided. However, we are facing challenges as the relevant Ministry has not yet agreed to meet with us to discuss the bond amount.
On April 15, 2024, Kition met with His Excellency the President of the Republic and other officials. During the meeting, Kition agreed with the Government's requests, however, stressed that the discussions with the Government must follow the timelines of the dispute resolution process of the Concession Agreement. These predetermined schedules are important for the effective planning and implementation of the project.
Kition left the meeting with the assessment that a mutual agreement was reached with the Government and that the discussions will follow the procedure provided for in the Contract Concession. Nevertheless, we asked for confirmation of what was agreed at the meeting. The Ministry of Transport, Communications and Works refused to confirm what was agreed and refused to follow the prescribed procedure and timelines mentioned in the Agreement.
Despite our surprise and regret at this approach, we have not given up and have kept the channel of communication open over the last week with a different approach whereby we can file the bond and enter into a good faith discussion under a different fixed schedule. Unfortunately, the Government is unwilling to commit to a specific timetable for good faith discussions.
Kition expected that the negotiations would be conducted in good faith and within a structured timetable that is essential to planning the implementation of the project. We were surprised to see that the Minister had started the “discussions” in the Media, excluding us from the dialogue. Unfortunately, we have repeatedly found ourselves learning the Ministry's position for the first time through the media. For example, no time frame regarding the bond was communicated as a condition during or after the meeting at the Presidential. On the contrary, we learned from the press about the Minister's arbitrary deadlines and threats.
The development of the Port and Marina of Larnaca is the largest development project in Cyprus. Unfortunately, there seems to be more concern about creating impressions than actually getting the job done. If the Ministry had invested the time it spent in media statements to discuss with us, we would have already overcome this situation. We expect the Government to change its approach. Kition only requests what the agreement itself provides and in accordance with the Law.
Kition Ocean Holdings' approach has always been to follow transparent and legal procedures to resolve any disputes, however, if this does not is possible, the issue should be decided by the Cypriot courts. We remain optimistic that through dialogue the outstanding issues will be resolved and we are actively working in this direction so that the project can move forward.
