LIMASSOL MAYOR Andreas Christou yesterday confirmed that there is currently an impasse in the procedure for acquiring bank funding for the construction of the Limassol marina – a large-scale project expected to cost around €170 million.
“There are certain issues in relation to the guarantees that the banks are asking for the Limassol Marina project. A dialogue has started between the contractor, the government and bank representatives so that we can find a solution and start the project,” Christou said.
“It was inevitable that we would have difficulties with the banks. It was not something that surprised us, the investors or the government,” he added.
Christou confirmed that although Cypriot banks have expressed interest in lending for the project, in light of the current liquidity crisis, they are requesting more guarantees, possibly from the state.
“It is possible that they want more state guarantees. It may possibly be related to the period of crisis that we are going through.
“Until the present the potential of selling flats and residences that would be constructed was considered sufficient guarantee, but apparently the downturn in the real estate market is causing banks to ask for more,” he explained.
Christou pointed out that the marina’s creation could give a much-needed boost to the market by creating jobs and tourism potential.
“We are interested in starting work immediately because the period that we are going through, when labour can be employed for such a demanding project would ease pressures that are already appearing in the labour market and would enrich our tourist product.”
Limassol marina will be located west of the old port, taking over the entire seaside area from the old to the current port.
It will accommodate up to 1,000 vessels and will offer a range of services including dining, residential, shopping and conference space. A park will surround the marina, while all buildings within it will adhere to old Limassol’s traditional architecture standards.
The marina will be constructed and managed under a built operate and transfer (BOT) agreement. In this case, the strategic investor will execute the plan and manage the marina for 53 years, and retain profit rights for 37 additional years.
Limassol Marina Ltd comprises J&P Avax A.E., Cybargo PLC, Fraggoudi & Stefanou, Ioannou & Paraskevaidi, Athena ATE, Cads, Holding Ltd and the Limassol Chamber of Commerce and Industry (EBEL) through the Limassol Marina Development Company.
It is expected that once launched, construction will be completed in two years for the marina itself, and in six to seven years for the surrounding residential area.
