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Land fillets at degrading prices

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Land fillets at degrading prices

The situation in the port of Limassol resembles a simmering cauldron, with the leasing of land in the port area, which were given to those interested in exchange for a lentil plate compared to existing chronic tenants who are bound by agreements that include tough negotiation, with the previous BoD. of the Cyprus Ports Authority.

They are protesting against an opaque procedure and an unfair way of assigning pieces of land this year to interested parties who will pay, compared to themselves, about 1/3 of the value, the long-term licenses granted to them, in the fifth of the change of baton in D. Σ. of ALK.

In fact, according to the minutes held by “Φ”, dated 19 May 2021, the award criteria emphasize that ALK has no obligation to award the contract to the bidder with the highest annual right of use for a specific space, if this is considered by the Authority, as lower than the current value of the land, based on the estimates of the Authority.

On June 1, the Board of ALK took the decision to award the tender for two pieces of fillets in the land area of the port of Limassol, to two companies at prices much lower than the estimates of the Land Registry in 2017 and Agathangelou in 2020.

The duration of the Contract amounts to 13 years, with the right to renew for another twelve years.

In 2017, in order for the Authority to redefine the value of the land areas of the port of Limassol and before announcing a tender for the granting of a license to use / exploit premises in the port, it commissioned three companies to prepare studies resulting in different estimates of the value of land views of three appraisers, which resulted in the Cadastral Registry taking over.

Space (no. 1) and with an area of 7200sq.m. on the basis of the estimates of the Land Registry in 2017 was estimated at € 21.27 / sq.m / year which implies with € 153,144 plus VAT and on the basis of the estimate of Agathangelos in 2020, it was estimated at € 14.4 / sq.m € 103,680 per year plus VAT. The BoD of ALK, however, finally granted it at the price of € 39,600 per year plus VAT.

As mentioned in the minutes, the BoD of ALK adopted in similar cases the logic of concession of land spaces with the right of concession, the average of the two aforementioned estimates, which is interpreted that space no.1 is estimated at € 17.83 / sq.m / year, ie € 128,378 / per year, plus VAT. Specific second plot (no. 2) with a total area of 14,972 sq.m., was estimated by the Land Registry in 2017 in the amount of 269 thousand euros per year, plus VAT. The current value of the piece is estimated at 275 thousand euros per year, plus VAT. The BoD of ALK, however, finally granted it at the price of € 106,301 per year plus VAT.

The same company submitted an offer for the same space in 2019, which amounted to € 160,200 and while it was higher than the offer of 2021, it was rejected due to the serious deviation of the offer from the ALK estimate. A total of four companies had submitted bids for both plots. They were all judged to be much lower than the estimated values of these items by the Evaluation Committee.

The evaluation committee considered that the two companies met the criteria of the tender, but both of their bids were seriously lower than the average of the relevant estimates of the Land Registry in 2017 and Agathangelou in 2020 and asked the Board. of the ALC to consider it and make a decision.

Update estimates for everyone

The development has caused frustration and anger among existing residents of the land who are complaining about a gap compared to their own charges and terms, unequal treatment and gradual over-indebtedness. According to information from “Φ”, the affected parties will request the immediate intervention of the Audit Service, they intend to appeal against the management of ALK, asking for an update downwards or even a change in the terms of their own contracts in order for a fair assignment of parts of the state land and not to prevail the phenomenon “Two meters and two weights”.

The award of the offer

The offer for the two pieces was awarded on June 1, 2021 at a meeting of the Board. of ALK, in the companies Salamis Shipping Services Ltd and in Amathus Aegeas Ltd. A handwritten note on the minutes explains that:

“This decision was taken after taking into account various factors, including the fact that this is the second tender announced for the same subject, while the continued non-utilization of space leads to a loss of revenue for the state.”

Research by the new Board

“F” contacted the chairman of the new board of directors of the Cyprus Ports Authority, Mr. Antonis Stylianou, from whom he asked to comment on the allegations and the facts of the case, which smells of scandal. Mr. Stylianou stated that at present he does not want to make a specific position. He stressed, however, that he would order an investigation to determine exactly what was happening.

Philenews

Source: 24h.com.cy

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