Qatar deal ‘down but not out’

aTHE GOVERNMENT yesterday denied that negotiations with Qatar on the multi-million euro investment project had collapsed and called instead for less “noise” on the matter.

Government spokesman Stefanos Stefanou said yesterday: “I want to make clear that there is no collapse (of negotiations) on the matter of Qatar. We are in the process of contacts and negotiations aiming to realise the Qatari investment.”

The Cyprus Mail reported on Wednesday that the deal had run aground with Qatar looking to step away from a deal which according to a source close to the negotiations had seemed just around the corner.

The source said the two sides were close to agreement on the value of prime real estate sitting opposite the Hilton Hotel in Nicosia earmarked for development when Qatar sent a letter to the government last week, backtracking on previous evaluations.

The land will be contributed by the state in exchange for Qatar investing millions in a luxury complex there. The government’s initial estimate on the value of the land was €135m while Qatar valued it at €38m. Following bilateral meetings in Doha, Qatar last November, it is believed the two sides were preparing for a compromise somewhere between €80m and €100m. Last week’s letter revealed that Qatari evaluations had dropped back down to €50m, signalling a reluctance to press ahead with the project, said the source.

Numerous reports have hinted of Turkish interference in the Qatar-Cyprus project.

Quizzed on whether the deal was on the rocks, Stefanou specified the deal had not collapsed. He said the government was working towards achieving its goals and implementing the project.

Asked if there were any extra obstacles in the negotiations, he said: “Let me remind you that the government said from the beginning on this issue that there doesn’t need to be a lot of noise on this because noise doesn’t help.”