New optimism after visit to Qatar

FINANCE Minister Charilaos Stavrakis yesterday said it would be foolish for Cyprus not to cooperate with Qatar as the two sides seem to be trying to overcome difficulties regarding a multi-million euro deal to construct a luxury complex in Nicosia.

”The whole climate is not easy. Nevertheless, I am optimistic there will be an agreement that will be to the benefit of the Cypriot economy,” Stavrakis said.

Stavrakis, accompanied by government spokesman Stefanos Stefanou, travelled to Qatar last weekend to see the Emir and discuss the joint venture, which seems to be delayed due to differences on the value of the land opposite the Hilton hotel.

The land will be contributed by Cyprus in exchange for Qatar investing what the property was worth in cash.

The government’s initial estimate on the value of the land was €135 million while Qatar valued it at €38 million. Following meetings in Doha, Qatar last November, the two sides appeared to compromise somewhere between €80 million and €100 million.

But Qatar then sent a letter saying Qatari evaluations had dropped to €50 million, which some viewed as reluctance to go ahead with the project.

“We should not say that the price is not important because it certainly is … but there are many more important factors that need to be considered,” Stavrakis said. ”The Emir expressed his commitment to make many investments in Cyprus.”

He added that Qatar was an economic superpower. “I think it would be foolish on our behalf not to cooperate with them without reason,” the minister said.

Stavrakis said on Tuesday he briefed the board of directors of the company that will be managing the procedural issues of the investment in order for them to conduct their own analysis and technical and economic studies, and to present written proposals to the government on ”how we can proceed and if the terms are in our interests.”