FINANCE Minister Charilaos Stavrakis yesterday seemed upbeat about the prospects of a planned Cyprus-Qatar development project on the island.
“At this moment we are more optimistic than we had been before our trip. There have been some convergences,” Stavrakis said of the bilateral talks this weekend in Doha, Qatar.
Earlier this year, the two countries signed a multi-million euro deal to develop a hotel, residential and commercial complex in central Nicosia opposite the Hilton hotel. Under the deal, Qatar and Cyprus are to set up a 50:50 joint venture to develop the project. Cyprus’ contribution to the venture is the actual land plot, while Qatar will put in an amount equal to the value of the land.
However the deal stalled after disagreement arose over the value of the property, with Cyprus’ appraisal being significantly than that of Qatari Diar, the state-owned real estate company that is to bankroll the project. The valuation is key to the project as it will determine the level of the investment made by the Qataris.
Cyprus’ appraisal has been furnished by the Land Registry – a governmental department – and not by independent experts.
During his two-day visit to Qatar, Stavrakis met with Sheikh Hamad bin Jassim bin Jabr al-Thani, Qatar’s Finance Minister Yousef Hussain Kamal and leaders from the Qatar Investment Authority.
Stavrakis said the Qatar Investment Authority had expressed a “keen interest” in additional possible investment projects in Cyprus with the participation of investors from the public and private sectors. As such, the Finance Ministry will begin drafting a list of potential co-financed projects.
Christos Mavrelis, chairman of the joint venture, similarly spoke of “convergences” over the Nicosia hotel development project.
He said that during the discussions in Qatar the two sides had a “frank exchange of views” and looked at various economic models concerning the financial viability of the proposed project.
“We feel,” he added, “that there is both good will and an honest desire on both sides to find the golden median so that the project can move forward as soon as possible.
More than just a joint venture, the project should be regarded as a strategic alliance between the two countries, Mavrellis said.
Though declining to say when one might expect the deal to be finalised, he offered: “There have been convergences and we’re on the right track.”
And in a statement that could be interpreted in more than one ways, the Finance Ministry said yesterday that at the meeting in Doha each side “asked for specific data pending the final outcome.”
