Kition Ocean Holdings Ltd. has labeled the government's notice to terminate the unified development contract for Larnaca Port and Marina as illegal.

In a statement, the company explained, "Today, the government decided to terminate the concession contract related to the Larnaca Marina and Port. Earlier this morning, while we were in court seeking the enforcement of the contract, the government sent us a termination notice."

>>Larnaca Port and Marina Contract Terminated<<

The statement continued, "Our legal team has informed us that the termination notice is illegal and violates the terms of the agreement. We are currently examining our legal options."

The company further expressed its surprise at what it described as a disregard for the judicial process, noting, "This is not the behavior we would expect from a state. Two months ago, we filed a court application to compel the government to adhere to its own agreement and meet to resolve the disputes, as stipulated in the contract."

Kition Ocean Holdings added that the government's behavior "undermines the rule of law that should protect investors."

"Kition Ocean Holdings has always acted in accordance with the agreement and the law. We were willing to proceed with the project, attempting to resolve any differences with the government constructively," the statement concluded.

Meanwhile, the Larnaca Chamber of Commerce and Industry (EVEL) expressed disappointment over the contract termination.

In a written statement, EVEL commented on the government's termination of the agreement with Kition Ocean Holdings Ltd, noting, "We have been informed that the Ministry of Transport, Communications and Works is taking all necessary actions to ensure the smooth transition and uninterrupted operation of the port and marina."

The statement added, "Following today's events, our primary concern as EVEL is that the Ministry and State Services ensure the smooth operation of the port-marina, without affecting the scheduled activities of our member-users. It is also crucial to prevent any delays in ship loading and unloading that could incur additional costs and further problems."

The state, the statement continued, "must be ready to address any issues arising from this decision."

EVEL President Dr. Nakis Antoniou has requested a meeting with the Minister of Transport to discuss the situation comprehensively and convey the strong concerns and questions arising from today's interaction with our members. The Minister responded positively, and barring unforeseen circumstances, the meeting will take place on Friday with the presence of the Mayor and other Larnaca stakeholders."

Additionally, EVEL expressed, "We do not hide our disappointment over the failed investment. Nevertheless, we remain optimistic that we will achieve tangible positive results in the future, ensuring the project's realization, which will benefit the city and District of Larnaca, as well as the whole of Cyprus."

Lastly, consensus between the government and the unions SEK and PEO regarding the next steps in the government’s plan for the development of Larnaca Marina and Port emerged from a meeting at the Ministry of Labor and Social Insurance, according to a source from the ministry.

The source noted that the matter was discussed in a lengthy meeting that began at 8:30 a.m. and concluded around 11:00 a.m., attended by Minister of Labor and Social Insurance Yiannis Panayiotou, the Ministry’s General Director Andreas Zachariades, Deputy Director of the Department of Industrial Relations Andis Apostolou, and representatives of the SEK and PEO unions.

According to the Cyprus News Agency, simultaneously with the delivery of the termination notice from the Ministry of Transport, Communications and Works to the contractor, representatives of the workers were called to the Ministry of Labor and Social Insurance for information and coordination regarding the implementation of labor laws and the protection of workers' rights.

"There was consensus on the next steps within the framework of the government’s plan," the source noted.